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Zillow ranks Cleveland second hottest real estate market in the U.S. for 2023

Cleveland came in second place just behind Charlotte, North Carolina.
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Posted at 7:01 AM, Jan 31, 2023
and last updated 2023-01-31 07:01:27-05

CLEVELAND — It is no secret that Cleveland rocks.

Just ask anyone who lives here.

But our hometown is in the national spotlight earning top marks when it comes to the real estate market and people looking to buy a home.

Real estate website "Zillow" just named the CLE one of the hottest housing markets in the United States.

Cleveland ranked number 2 in the top 10.

Charlotte nabbed the number 1 spot.

Pittsburgh took third place (Check out the full list here:

According to Zillow, the factors behind the rankings include expected home value growth, projected change in owner-occupied households and job growth compared to new construction.

Local real estate experts say just getting the word out on a national scale entices prospective home buyers to invest and plant roots in Northeast Ohio.

Cleveland is also getting major attention because the city offers all the amenities at a fraction of the price of other major Metropolitan cities, according to experts.

Drive around any Cleveland neighborhood, and you'll likely spot one "For Sale" sign after the next.

Despite economic uncertainty, the housing market in Northeast Ohio continues to entice prospective buyers.

Zillow looked at buyer demand, expected home value growth and affordability when it compiled the 2023 rankings.

"I guess that's great for Cleveland, right?" Matt Stevens said.

Berkshire Hathaway Stouffer Realty agent Sarah Halsey says the market has definitely gone through a transition period, but the last eight years have been consistently busy, whether you're a first-time buyer, transient or looking to downsize your space as a retiree.

"I think that people are still interested in the Cleveland market for a few different reasons. One being the cost of living. Two, the job opportunities. And three, the new housing developments."

Halsey says the market has evolved and created more of an even, fair playing field for everyone over the last year.

It's not like it was during peak pandemic, where realtors were getting multiple offers $50 thousand dollars over asking price and waiving home inspections, Halsey said.

Halsey says interest rates have also changed the game.

"Rates a year or so ago, even less than a year ago were about 2-3%. We haven't seen low rates like that ever, really. And now rates are about 5-6%," Halsey said.

And as for why so many people are looking to settle down here versus a more year-round warmer climate--

"I understand people need affordability, and I would live some place with my family that was like this," Barbara Cossey said.

Halsey says although rent prices are high everywhere--they're manageable here.

And if you buy a home, your mortgage—will likely be cheaper.

"The cost of living in Cleveland is significantly less than other areas. It's 11% below the national average, and rentals are 11% below the Ohio average, being a big city by a large body of water," Halsey said.

The median list price for a home in Cleveland is around $110-$115 thousand dollars.

Real estate officials say it's enticing to first-time home buyers.

As for the coolest or worst markets to buy a home-- Zillow ranked San Jose, Minneapolis and Sacramento.