Jun 10, 2024 - Real Estate

Northeast Ohio home prices are rising amid exorbitant interest rates

Choropleth map showing the change in the FHFA Housing Price Index, by state from Q1 2023 to Q1 2024. The average increase was 6.6%. Washington, D.C. was the only place where prices decreased. The highest was in Vermont, with a 12.8% increase. The majority of New England, other than Massachusetts and Rhode Island, were above 9%.
Data: FHFA; Map: Axios Visuals

Northeast Ohio home prices continue to rise with mortgage rates still hovering near a hefty 7%, per the latest data from the Federal Housing Finance Agency.

Why it matters: Higher home prices are good news for homeowners seeking increased equity and sellers wanting top dollar, but they can be challenging for potential buyers, especially with higher interest rates.

Zoom in: Prices have increased nearly 8% year-over-year in the Cleveland metro area and are up nearly 10% in Akron.

  • The Akron and Cleveland metro areas rank No. 20 and No. 40, respectively, among the top 100 metro areas in the country for year-over-year increases.
  • They're also the top two markets in Ohio in terms of price increase.

Zoom out: Nationwide, prices are up 6.6.% from last year, per the FHFA. Ohio is above that with an 8% increase statewide.

  • Vermont saw the highest home appreciation in the country with a 12.8% increase, and New Jersey (11.6%) and New York (10.9%) weren't far behind.

The latest: In May, Realtor.com reported that home prices in Cleveland rose substantially to a median listing price of $135,475.

  • Meanwhile, inventory decreased by 12%, and homes continued to sell at a similar pace as the previous year.

The bottom line: In January, Zillow predicted Cleveland would be one of the hottest housing markets in 2024, based on strong demand and steady home values.

  • At this point, the area appears to be living up to the hype.
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