CLEVELAND (WJW) – The hot housing market is showing signs of cooling down after a pandemic high of soaring house prices paired with low interest rates, limited housing stock and bidding wars to find home sweet home.
Brendan Durkin, of Rocky River, knows the stress firsthand after recently purchasing a new home prior to selling his previous house.
“We were excited for five minutes and now we’ve got to sell our house,” said Durkin.
His home sold in just four days with multiple offers.
“We ran into the mortgage interest rate rise a little bit with our new house,” Durkin said. “It happened rather quickly. We were able to be flexible and work with a good lender to get a decent rate but higher than we had on this one.”
Realtors said buyers and sellers will notice a shift in trends where houses might sit on the market longer than before. According to the Akron Cleveland Association of Realtors, homes on average in Cuyahoga County are on the market for 33 days.
“Longer time on market which is something we haven’t seen over the last 18 to 24 months,” said realtor Mark Vittardi of CENTURY 21 DePiero & Associates. “Properties coming back to market, that’s something we haven’t seen all that often over the last 24 months as well.”
Vittardi said setting realistic expectations is key. The housing demand remains high with limited inventory and rising monthly mortgage payments. The 30-year fixed mortgage rate is hovering below 6%.
“If they were looking at a $300,000 mortgage back in December, their monthly obligation would be roughly $1,200 to $1,300,” said Vittardi. “Now that same property is closer to $1,800. That’s a pretty significant swing.”
After frustrations trying to find the perfect home, Kia Durham decided to work with a builder to construct a home in a west side suburb. Now in her new home, Durham encourages buyers to explore new construction and work with an agent to see if the option is a good fit.
She realizes new construction is not immune to market fluctuation.
“You absolutely adore this home and you’re making all sorts of bids and you’re like, ‘OK, I’ll put in another bid, I’ll put in extra money,’ and then for other people to outbid you, can’t sleep at night,” said Durham.
Vittardi said prospective buyers should keep a close watch on their monthly budget and adjust expectations in order to have a better home buying experience.