Real Estate Market Summary 2008 – Pepper Pike

2008 was an off year in real estate in Pepper Pike. However, having an excellent rated school system and homes that typically sit on 1.0+ acre wooded lots still makes Pepper Pike one of the most desirable and exclusive communities on the east side of Cleveland.

In terms of average sales price, home values in Pepper Pike have fluctuated over the last 5 years. In 2008, the average price of a home in Pepper Pike was $440,743, the lowest this number has been since 2003. In 2007, the average price of a home was $512,435. The lone bright spot was that the average price per square foot increased from 2007 to 2008, from $123.13 to $130.15.

Market time has steadily increased as well over the last 4 years. In 2005, average market time in Pepper Pike was 88 days. This number has inched upwards and in 2008, it took 133 days, on average, for a home to sell in Pepper Pike.

Pepper Pike Luxury Homes- In terms of luxury homes, which are those that sell for over $500,000 per the Institute for Luxury Home Marketing, 17 luxury homes sold in Pepper Pike in 2008, which is the lowest this figure has been in over 5 years. In 2007, 32 luxury homes sold in Pepper Pike.

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 Pepper Pike, and surrounding areas as well, 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 ( 138 vs 66 ).

Also, today’s buyers have expectations that in order for them to pay market value for a home, it should be updated and in move in condition. Homes that have not been updated recently linger on the market and often do not sell. Buyers will pass these up for a similarly priced home that is more updated. Today’s buyers simply do not want to put a lot of money into a home.

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

For more information on the Pepper Pike 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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