How Low Can You Go?

By
Real Estate Agent with Howard Hanna Real Estate Services

For the first time in a while, we are not talking about low home values. We are actually describing the number of homes currently for sale in the local Cleveland real estate market.

Take a look at the numbers below of current listings in some of the area's more popular suburbs:

CITY                                ACTIVE LISTINGS

Aurora                                        67

Beachwood                                33

Bainbridge                                  65

Chagrin Falls                              39

Hudson                                      95

Lakewood                                  91

Pepper Pike                                47

Rocky River                                 76

Solon                                          97

Westlake                                    91

 

Can you imagine what it's like buying a home in Beachwood? There are only 33 homes for sale in the entire city, meaning there's only a handful in any given price point.

Low inventories have actually been a problem for a while now and will continue to present a challenge for anyone entering the real estate market this year.

 

CHALLENGES FOR BUYERS AND SELLERS

Here is what low inventories mean:

FOR BUYERS:

1.   Harder to find a home

2.   Increased Competition

3.   Higher Prices

4.   Less Negotiating Power

5.   Must Be More Flexible

FOR SELLERS:

1.   Easier To Sell

2.   Increased Confidence

3.   Higher Prices

4.   More Leverage

5.   Easier To Buy Another Home

 

 

TIPS FOR BUYERS AND SELLERS IN 2013

The most important thing to do if you are buying a home this year is to get pre-approved up front. Waiting until the last minute to get your financing in order may be too late. Limited inventory causes competition ( bidding wars! ) and without a firm pre-approval, you will be negotiating from a weakened position.

Hire a buyer's agent. A good agent will be aware of homes that are available but not yet on the market. Agents are very resourceful and can work their network to find homes for their buyers.

If you are selling this year, get your home on the market as soon as possible. Right now you have less competition and, if priced properly, could really benefit. Make sure your home shows well and is priced properly.

Low inventories bring a new dimension to our local real estate market. However, compared to the rough years we saw during the recession, this is a good problem to have.

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If you liked this post, please subscribe to our blog. We always appreciate having new readers and more importantly, enjoy making new friends.

 

Here are some of our others posts that may interest you as well:

One Question That You Absolutely Must Ask Your Clients

5 Reasons Why Using A Local Agent Is Better

Cool Virtual Tool To Help Pick Out Paint Color

Is Social Media Killing Confidentiality?

Real Estate Agents Are Not Just Door Openers

 

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About The Authors:

Dan and Amy Schuman are agents with Howard Hanna, the area's largest real estate company. They live in Solon Ohio and specialize in Cleveland Luxury Homes, working with buyers relocating to Cleveland, and first-time buyers.

 

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How Low Can You Go? is the property of The Schuman Team and may not be duplicated or used without their written consent.©March, 2013

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Topic:
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Advice for Buyers
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cleveland homes for sale
low inventory

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Rainmaker
1,064,087
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

I love your title, powerful graph and the wealth of valuable information packed into this post!  Job well done!

Mar 24, 2013 11:21 PM #1
Rainmaker
529,665
Karen Feltman
Cedar Rapids/Iowa City, IA KW Legacy Group - Cedar Rapids, IA
Relocation Specialist in Cedar Rapids, Iowa
Sounds like you will have a lot of buyers and sellers that are motivated this year! Great information.
Mar 24, 2013 11:22 PM #2
Ambassador
2,758,543
Liz and Bill Spear
RE/MAX Elite 513.520.5305 www.LizTour.com - Mason, OH
RE/MAX Elite Warren County OH (Cincinnati/Dayton)

Dan, Our inventory has dropped some, but it's locally different.  Some neighborhoods have an abundance, but the prime communities do have a shortage of homes for sale.  We've been working with buyers more than usual this winter/spring and watching some key markets really heat up.

Mar 25, 2013 12:38 AM #3
Rainmaker
1,229,086
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor
Dan & Amy, so many areas have similar issues, but good reason to prospect a farm area, especially where your buyers want to buy. Good luck.
Mar 25, 2013 01:09 AM #4
Rainmaker
301,963
Dan and Amy Schuman
Howard Hanna Real Estate Services - Solon, OH
Luxury Home Specialists

Sharon - Thanks for the kind words.

Karen - Motivated buyers and sellers, just not enough sellers in some parts of the market.

Bliz - The market seems to have really changed here over the last 3-6 months. Still hoping for more inventory over the next 60 days.

Mary - That's a great point.

Mar 25, 2013 06:50 AM #5
Rainmaker
570,170
Christine Smith
Buyers Brokers Only LLC - www.BuyersBrokersOnly.com - Canton, MA
Exclusive Buyer Agent & Attorney, Canton, MA

Dan & Amy...we are seeing the same numbers here.

Mar 25, 2013 10:44 AM #6
Rainmaker
290,212
Ellie Penaranda
239.776.5077 Downing-Frye Realty - Naples, FL
Naples Florida Real Estate - Waterfront & Beach Co

Dan/Amy, the low inventory is causing us to show the same 2 or 3 properties to different buyers in the same day.  I almost got caught last week with two of my buyers wanting to put an offer on the same property.  Thankfully one of them changed direction and made an offer on another.  In a certain price range by the beach we are extremely low.  Happy Easter to the both of you. 

Mar 29, 2013 11:15 AM #7
Rainmaker
861,225
Gabrielle Kamahele Rhind
KGC Properties LLC, Tucson Property Management & Real Estate - Tucson, AZ
Broker/Owner

GOOD MORNING DAN!  Those are low numbers -  but it works for Sellers and it's nice that it has turned in that direction for a while!

Apr 11, 2013 11:01 PM #8
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