The real estate market of Cleveland took a major hit when the real estate bubble burst back in 2009. The prices came crashing down, and a lot of people were left wondering about the future. However, there have been positive signs of recovery, and things are looking better and brighter today.
Trends Dominating the Real Estate Market of Cleveland
Here is a quick snapshot of the trends that we believe are dominating the Cleveland real estate industry today.
Growth in owned properties
The city has experienced an increase in the number of people moving downtown and wanting to settle down. However, this group of new settlers is more interested in owning a piece of property than just renting out. Although the new entrants into the system are millennials who are expected to rent rather than own due to job security, the rise in ownership is quite an encouraging sign.
A recent study showed that majority of the new people who are moving into Cleveland are millennials. This is the same generation who has higher standards when it comes to lifestyle. So, they prefer to invest in properties that are closer to popular hangout zones. They want shopping malls, entertainment arenas, and even eating out places to be easily accessible. Due to this, we will witness a rise in the prices of properties that are closer to the city and are walking distance from the public transport places.
Impact of the rising interest rates
With the new government in place, the mortgage rates are expected to witness a spike in the next 2 years. However, this increase in mortgage rates is less likely to affect the property buying decision of the people. In fact, many people agree that while higher mortgage rates are something that they worry about, their decision to buy a property does not get affected by it.
Green infrastructure supports realty rates
Cleveland is one of those cities in the country that has undertaken green infrastructure policy recently. Efforts are being made to manage the storm water sources more efficiently so that the resilience of infrastructure can be improved. New initiatives are also being implemented to improve sustainability of infrastructure and making it eco-friendly. These efforts have supported the higher realty prices set by the sellers of the property.
Unlike other cities in the country, right now it is hard to say whether the city’s real estate market is driven by buyers, sellers, or if it is just a bubble that is being created. There are many more factors that still need to be played out completely. However, it is clear that the growth in jobs and wages is most certainly ushering in a lot of changes.