“The residential real estate market benefited from low interest rates, reduced mortgage defaults and a tighter supply of available homes.” The price of houses continued the slow climb upward in August, according to the much anticipated Standard & Poor’s/Case-Shiller Price Indices report. Single-family homes rose in 19 of 20 major cities during the summer (June, July, August), including in the Cleveland area. In the Cleveland-Elyria-Mentor region, prices were up 1.1% in August, year over year. The 20 city average was 2%.
This news comes after four consecutive months of gains, adding more optimism to the overall housing market recovery. On top of the low interest rates, fewer mortgage defaults and a tighter home supply, new home construction is increasing and home sales in general are on the rise. Mortgage delinquencies remain high. Together, this is making a more balanced housing market overall. Across the US, average house prices are nearing 2003 levels, but in Cleveland, it’s more like 2000 levels.
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