Cleveland's Home Prices are Growing at the Seventh Fastest Rate in the Country

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According to a new housing market report by Homes.com, Greater Cleveland home prices continue to rise faster than the national average despite growing inventory. In July, only six of the 40 largest US housing markets saw faster annual sales price growth than Cleveland.

“Cleveland’s median home sale price rose 4.1 percent in July from a year ago,” stated the report, which analyzed data from CoStar, “compared with a 2.6 percent increase nationally.”

Chicago topped the value growth list with prices surging 6.5 percent year over year, followed by the metro areas of Baltimore, New York, Pittsburgh, Detroit and Philadelphia.

Despite recent growth, Cleveland’s home prices remain some of the lowest in the country — ranking 39th out of 40 metropolitan areas. The median home sale price in Greater Cleveland in July was $279,000, compared to $400,000 nationally.

Only Pittsburgh’s median sale price in July was lower than Cleveland’s at $273,200. The top four markets with the most expensive median sale prices were all in California — topped by San Francisco’s $1.55 million followed by San Jose ($1.54M), San Diego ($935K) and Los Angeles ($925K).

In comparison to California, housing in the fifth-ranked New York metro area was a veritable bargain with a median sales price of $799,000 in July, the report noted.

Last year, Homes.com said Cleveland had the highest sales price increase among 40 metro areas, growing more than 10 percent year-over-year. And back then it was cheapest market in the survey.

However, Cleveland sellers continue to maintain negotiating power this year, with typical homes selling for 98.7 percent of their asking price and sitting on the market for an average of 46 days, according to the report.

Cleveland’s inventory of for-sale homes increased 4.3 percent in July compared to the year prior, just below the national average of 4.4 percent. That puts it roughly in the middle of the pack, ranking 21st out of the 40 US metros.

Yet total for-sale inventory remains 29.1 percent below July 2019 levels from before the COVID-19 pandemic. Cleveland’s housing market possesses limited inventory with just 3.2 months of supply in July — compared to 4.7 months nationally.

The volume of home sales in Cleveland is also expanding faster than the national average, with home sales growing 4.6 percent year over year in July compared to just 2.9 percent nationally.

That increase in sales varied greatly between housing types, however, with townhome and condo sales surging in popularity, the report continued.

Townhome sales in July were up 21.7 percent over the year before, with condo sales up 10.2 percent. Meanwhile, July sales of single-family homes saw lower increases — just 3.5 percent year-over-year growth.

Increased interest in condos and townhomes could be explained by a variety of factors, such as smaller household sizes, improved perceptions of urban living, or simply homebuyers seeking more affordable housing types.

Regardless of the cause, high demand for townhomes has sparked attention from developers: Detroit- and Cleveland-based Bedrock is now rumored to be planning a townhome development on the west end of its $3.5 billion riverfront development in Downtown Cleveland.

The full Cleveland Housing Market Report is available here.

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