Your Supermarket Neighborhood
"When there is a market glut of reasonably priced homes, as there is in Cleveland right now, there are opportunities for buyers," says Carl DeMusz, president and CEO of the Northern Ohio Regional Multiple Listing Service (NORMLS). "A market glut usually occurs in areas with much higher price ranges and is generally not experienced when mortgage interest rates are so low."
More For Sale, More Sold
Top three cities with sales of single-family homes and condos from January to November 2006 (NORMLS statistics):
1. Parma 904 homes sold
2. Euclid 613 homes sold
3. Cleveland Heights 559 homes sold
An array of affordable housing stock is one reason. "These communities are traditionally stepping stones for bigger, better homes," says David Reddy, an agent with Keller Williams Greater Cleveland West in Westlake. "People can spend $100,000 to $150,000 on a home and move up to the next price range when they outgrow those homes."
Moving In, Moving Out
In November 2006, there were a total 2,379 single-family homes and condos for sale in Greater Cleveland. The cities with the most homes for sale are disproportionately located in inner-ring suburbs.
Proximity to Cleveland proper could be one reason why these inner-ring cities list more homes, suggests Pam Wetula, a lender with Real Estate Mortgage Corp. in Rocky River. "These cities are well positioned, but because the inner city is having difficulties, the inner-ring suburbs will share some of those difficulties," she says. "These communities are working hard to strengthen schools and city amenities." Lakewood's library and YMCA projects are examples.
Investing in Tomorrow
Euclid 593 homes
Shaker Heights 387 homes
Garfield Heights 385 homes
There may be a large number of homes on the market in Euclid, but according to statistics, those listings seem to sell.
convenient, they want to go way out."
For Sale: West
Parma 487 homes
Lakewood 388 homes
Strongsville 300 homes
Of course, these communities are not the only ones affected by factory closings and job losses, but nonetheless, they tend to take more of a hit when the economic chips are down, Reddy says.
For Sale: South
North Royalton 200 homes
Broadview Heights 176 homes
Brecksville 128 homes
"Brecksville is a great area — all of those communities are valuable," Reddy says. "But you have to be willing to spend more to get into homes there. People are buying in areas like Euclid and Parma for their first homes and moving into North Royalton and Brecksville as their income increases."
Meanwhile, new construction also presents competition in these three markets. For higher-end buyers already investing well more than $200,000 in a home, building to suit is an appealing alternative to buying a fixer-upper. "In that price range, you do compete with new construction," Reddy says.
12:00 AM EST
February 19, 2007