At the beginning of 2016, Cleveland State University published a study titled “The Fifth Migration: A Study of Cleveland Millennials” that dissected the very real trend of millennials moving to downtown and surrounding Cleveland neighborhoods, as well as how to implement policies to sustain this growth in our urban core. It’s really well done, an insightful read for any Clevelander, and it helps explain why the Lakewood housing market is heating up.
As it relates to Cleveland housing, this migration is marked by at least three things: lack of homeownership opportunity (12% of housing units downtown are owner-occupied), inflation of rental prices and a desire for a more connected, walkable community. Enter Lakewood, a Cleveland neighborhood-ish suburb with a Walk Score rivaling any Cleveland community, small businesses, bustling restaurant and art scenes, quick commutes and a lakeside lifestyle. It’s no surprise it’s the hottest neighborhood in Cleveland, according to Redfin.
So what will 2017 look like?
Inventory
To frame our 2017 story in Lakewood, let’s start by looking at the number of all homes for sale since 2012:
This is a quite a sight for a sellers’ eyes, a consistent trend of dwindling of inventory ending 2016 with about three months of supply. This means it would take only three months for all the current homes for sale on the market to sell, where four to five months of supply is average. If the number is smaller, this means that buyers are dominating the market and there are relatively few sellers.
What does the lack of inventory mean for competition and pricing?
Competition
Even with the lack of inventory, home sales spiked as high as 61.5 percent year-over-year in May 2016! So there may be fewer homes for sale in Lakewood but the number of sales is actually increasing? We’re getting warmer…
Three numbers that can help shine some light on competition in the Lakewood housing market: 99.5, ⅓, and 50. Let’s take a look:
Sellers were receiving 99.5 percent of their asking price in November 2016, the highest level since 2012.
One out of every 3 homes in Lakewood sold over asking price and the average days on market was 50, which also happens to be the national days on market number for November 2016.
We expect this trend to continue through 2017, not slowing for a slight increase in interest rates and a small bump in inventory will only alleviate some of the demand. So how do you win as a buyer in such a competitive environment?
Speed
Eighty to 100 new listings will come onto the Lakewood market in any given month, many coming up soon in the Cleveland spring season and some snatched up in less than 24 hours.
Speed wins in our ever-changing industry and technology has changed everything on that front. It’s not uncommon for buyers to purchase homes sight unseen, especially those who may be moving here from another market, relying solely on inspection contingencies to see the house for the first time in real life.
Redfin posts new listings seven to nine days faster than the national portal sites and never displays homes that are no longer for sale. Saved Search and our Book It Now technology allows you to be the first to know and the first to schedule a tour of a new Lakewood listing when YOU want.
2017 will be the fastest moving real estate market on record, get ready Lakewood!
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