Although the number of foreclosures and residential bank owned properties has remained high in Cleveland, Ohio, local market analysts have stated that the housing industry is getting better. They also expect the area to recover economically within the year.
According to local experts, the presence of Cleveland bank owned properties and foreclosed homes have caused housing to lag behind other sectors in terms of recovery. They explain that the huge number of unsold properties plus the looming shadow inventory is pulling the residential property market back from taking a considerable step towards improvement. They also stated that the poor condition of the housing market is taking its toll on consumer confidence and preventing more spending, which is highly needed during an economic downturn.
However, despite the oversupply of foreclosures and bank owned properties in Ohio, experts stated that the industry has gotten better in the past few months as sales of residences start to pick up. They cited data from the National Association of Realtors, which showed that, in the 2010 fourth quarter, housing unit sales have increased among most states, with prices rising by 78% in over 150 metro areas, including Cleveland.
In Lake County, which is part of the metro area of Cleveland-Elyria-Mentor, the average selling prices of houses, including residential bank owned properties, have risen from the 2009 average of $133,000 to $137,000 last year. Prices also increased in Geauga County from $228,000 to around $236,000 over the same period.
Realtors have stated that home buying activities have continued to improve in the first two months of 2011. They reported that pending sales for low-priced bank owned homes and non-foreclosed houses have started improving in the last month of 2010, with December pending sales agreements rising by 20% compared with the same 2009 month. The inventory of unsold homes has also declined and foreclosure supplies have started to decrease. This, realtors have stated, will help stabilize housing unit prices in the region.
Local analysts are also optimistic that more buyers will come to Cleveland this year, given that residential bank owned properties and other types of homes in the city are some of the most affordable all over the country. They also believe that the low interest rate will help convince buyers to close out purchase transactions.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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