CLEVELAND — The U.S. housing market hit a turning point in May, with supply outpacing demand for the first time since 2019.
While the market has cooled slightly despite interest rates on the rise, it hasn’t made much of a dent in home prices. Experts say, when it comes to finding a home, patience is still the key.
“It's really been a mix of frustration, excitement, and stress. It's just an emotional roller coaster,” said Taylor and Spencer Conner. “We've seen 32 other offers, people going for $30-60,000 over asking price.”
But there is some relief in sight. According to Realtor.com, the median listing prices in May for homes in Cleveland were down 2.3%. The median listing price was $215,000.
“Last year or even two years ago when we might be competing against 20 or 30 other offers, maybe it's only 5 to 10 other offers at this point,” said Angela Thompson, of Monument Real Estate Services. “Buyer fatigue is definitely real. And there are some buyers who are just like, you know, ‘I can't compete.’”
Locally, Northeast Ohio is bucking the trend when it comes to new listings compared to the rest of the country. Rising rent prices also makes Ohio a market where people are still looking to scoop up houses to avoid more rate hikes.
“Average sales prices are still a lot lower than a lot of other markets. And so, the cost of living overall is lower. So, you know, Northeast Ohio is the place to be,” Thompson said.
Thompson also said the trend of waiving home inspections is slowing, but buyers aren’t always asking the seller to pay for repairs.
“My advice for people in the same situation right now is really just be patient," said Taylor Conner.
Mortgage rates surged by more than half a percentage point this week after another interest rate hike by the Federal Reserve. The jump is the largest one-week increase since 1987. The 30-year fixed-rate mortgage averaged 5.78% in the week ending June 16, up from 5.23% the week before.
Rates have risen more than two-and-a-half percentage points in 2022, after they were at an average of 2.93% this time last year.
“When you put an offer in our house and love it and it's like, oh, I can see myself living here for a long time and you don't get it that that can be stressful,” added her husband, Spencer.
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