Real Estate Market Summary 2008 – Moreland Hills

2008 was a decent year in real estate in Moreland Hills. Despite all of the negativity in the media, it wasn’t all doom and gloom here as 40 homes sold in 2008 compared to 43 homes that sold in 2007. Having an excellent rated school system and homes that typically sit on 1.5+ acre wooded lots makes Moreland Hills one of the most exclusive communities on the east side of Cleveland.

In terms of average sales price, home values in Moreland Hills have fluctuated over the last 5 years. In 2008, the average price of a home in Moreland Hills was $483,925. In 2007, the average price of a home was $531,436, which was up from 2006 when it was $500,272.

Market time has steadily increased as well over the last 5 years. In 2004, average market time in Moreland Hills was 99 days. This number has inched upwards and in 2008, it took 130 days, on average, for a home to sell in Moreland Hills.

Moreland Hills Luxury Homes – In terms of luxury homes, which are those that sell for over $500,000 per the Institute for Luxury Home Marketing, 10 luxury homes sold in Moreland Hills in 2008, which was exactly 25% of the total number of homes sold. This number is the lowest over the last 5 years. In 2007, 21 luxury homes sold in Moreland Hills, which accounted for almost 50% of all total sales.

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 Moreland Hills were statistically appreciating at much higher rates than normal. So, instead of focusing on realistic market conditions, many sellers would price their homes based on the market continuing to appreciate at an unrealistic pace. Many sellers merely priced themselves out of the market and did not properly react to the downturn. This can be evidenced by the fact that more than twice as many homes didn’t sell in 2008 than sold ( 87 vs. 40 ).

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

For more information on the Moreland Hills 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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