Stow & Summit County Real Estate Market Update

The real estate market in Stow, Ohio and throughout Summit County is entering an interesting period. Inventory remains relatively tight, but buyers are finally starting to see more choices and, in many cases, more negotiating power.

That combination could create one of the better buying opportunities we have seen in Northeast Ohio in years.

Inventory Is Improving — But We Still Don't Have an Oversupply

For the past several years, low housing inventory has been one of the biggest challenges for buyers throughout Stow and Summit County.

We're now beginning to see inventory improve. Portions of the Summit County real estate market are approaching roughly two months of available housing supply, while Stow remains even tighter.

That's still far from what I would consider an oversupplied market, but the change is important.

Buyers may now have more opportunities to negotiate price, request repairs, obtain seller concessions and simply be more selective about the homes they purchase.

Mortgage Rates Have Moved Higher

Mortgage rates remain one of the biggest factors affecting today's housing market. I'm currently seeing qualified buyers obtain conventional mortgage rates around 6.85%, although the actual rate varies based on the borrower, loan program and other factors.

Higher rates have caused some buyers to remain on the sidelines. But mortgage rates don't necessarily move in the same direction as the Federal Reserve's short-term interest rate decisions.

Longer-term bond yields have a major influence on mortgage rates, which means we could eventually see mortgage rates ease even if short-term rates remain elevated.

Home Prices Are Holding Up

One of the most interesting parts of the current Summit County housing market is that higher borrowing costs haven't resulted in a major decline in local home values.

Home prices in many Northeast Ohio communities have remained resilient because housing supply is still relatively limited.

For buyers, that's creating an unusual environment: more negotiating leverage without a major collapse in home values.

Buyers Are Finally Getting Some Leverage

A few years ago, buyers routinely had to compete with multiple offers, pay over asking price, waive contingencies and accept properties with little negotiating room.

Today, we're beginning to see more opportunities for buyers to negotiate.

Depending on the property, that can mean price reductions, seller concessions, repairs and better overall purchase terms.

For real estate investors, higher interest rates can make deals appear less attractive initially. But purchasing a property at a better basis today — with the possibility of refinancing later if rates decline — can change the long-term economics considerably.

The Consumer Is Starting to Feel Pressure

Higher borrowing costs, energy prices and everyday household expenses continue to put pressure on consumers.

I'm also beginning to see signs that some homeowners are feeling that pressure. If that continues, we could gradually see more properties come onto the market.

I don't expect a flood of distressed real estate, but even a modest increase in inventory could create additional opportunities for buyers and investors.

Could This Be the Best Buying Opportunity in 10 Years?

I believe it could be.

Some of the best real estate opportunities happen when there is uncertainty in the market.

Higher mortgage rates and economic concerns are keeping some buyers on the sidelines, while Stow, Summit County and Northeast Ohio continue to have relatively limited housing inventory and resilient home values.

That gives today's buyers something we haven't seen much of in recent years: less competition and more negotiating power without a collapse in the underlying real estate market.

If mortgage rates eventually decline, many of the buyers currently sitting on the sidelines could return to the market. If that happens before housing inventory increases significantly, competition could pick up again.

The goal isn't to perfectly time the market. It's to find the right property, at the right price, with terms that make sense for your situation.

About Brad Miklovich

Brad Miklovich and The Bradley Alan Group at Keller Williams Chervenic help buyers, sellers and real estate investors throughout Stow, Hudson, Summit County and Northeast Ohio.

Brad combines local market knowledge with extensive experience in residential and investment real estate to help clients identify opportunities, understand property values and make informed real estate decisions.

If you're considering buying, selling or investing in Northeast Ohio real estate, contact Brad Miklovich and The Bradley Alan Group to discuss your real estate goals.

 

Brad Miklovich
The Bradley Alan Group | Keller Williams Chervenic
216-287-6357
bradmiklovich@kw.com