Real Estate Market Summary 2008 – Beachwood, Ohio

2008 was a good year in real estate in Beachwood. Despite all of the negativity in the media, it wasn’t all doom and gloom here as there were as many homes sold in Beachwood in 2008 as there have been on average over the last 5 years. Having one of the top rated school districts in the state, great amenities, and low property taxes helps make Beachwood a desirable community in which to live.

Statistically, 97 homes sold in Beachwood in 2008, which is just a few less than sold in 2007 and more than sold in 2006.

Here’s the not so good news. The average home price in Beachwood has steadily declined since 2005 when the average price for a home was $305,487. In 2008, the average price of a home in Beachwood was $249,545. In 2007, the average price of a home was $261,158.

Market time has steadily increased as well over the last 5 years. In 2004, average market time in Beachwood was 70 days. This number has slightly increased every year since and in 2008, it took 92 days, on average, for a home to sell in Beachwood. However, the average market time in the Cleveland metropolitan area was over 100 days, so homes are statistically selling quicker in Beachwood than in many areas of Cleveland.

Commentary: The problem over the last few years is that sellers had unreasonable expectations of the value of their home based on unprecedented appreciation during the early part of the decade. During the real boom years of 2003-2006, homes in Beachwood were statistically appreciating at 5-9% a year. Normal yearly appreciation here in Beachwood and Northeast Ohio in general is only about 2-3%. So, instead of focusing on realistic market conditions, many sellers would look to see what similar homes were selling for and add 10% to get their listing price as they assumed the market would keep going up at this unrealistic pace. Many sellers merely priced themselves out of the market and did not properly react to the downturn. It has taken 2 years for sellers here to realize that the market is depreciating and to become more realistic with their price if they really want to sell.

The Beachwood Luxury home market statistics have also significantly decreased over the last 5 years. Luxury homes in the Cleveland area, according to the Institute for Luxury Home Marketing, are considered those that sell for over $500,000. In 2005 and 2006, 9 luxury homes sold in Beachwood, which accounted for about 10% of all sales. This number has steadily declined to where only 2 homes over $500,000 sold in Beachwood in 2008. Added to that, there were many bank owned and distressed properties that sold as well. These two factors along with the credit crises and overall state of the economy helped to push prices down in Beachwood.

As the statistics indicate, sellers are still selling provided they are competitively priced to what the market will bear.

On the other side, news is great for home buyers. Rates are at historically low levels and there are a lot of affordably priced homes here in Beachwood. There has never been a better time for a buyer.

For more information on the Beachwood housing market or for a personal consultation, contact Dan Schuman of the Schuman Team at 216-346-3235 or visit us on the web at www.schumanteam.com.

 

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