THE CLOCK IS TICKING ON THE CLEVELAND BUY TO LET MARKET

THE CLOCK IS TICKING ON THE CLEVELAND BUY TO LET MARKET

As a company we have been selling investment properties in Cleveland Ohio for the past two years and it is by far our best selling product, accounting for over 70% for the companies sales and enquires from investors all over the Globe. However recently we have seen an upside in the prices and also a shortage of inventory indicating that with a large demand for these types of houses from the overseas market, sellers and suppliers have an opportunity to increase their prices. Also with the amount of overseas and domestic investors snapping up these types of properties we are also finding it harder to locate good inventory that meets our investors criteria.

If you are looking at buying a house in Cleveland as a potential investment opportunity, in our opinion you must act now or certainly in the next 3-6 months to capitalise on these prices and returns while they are still around. 

Cleveland is often looked at as a has-been market. However, its turnaround has created a number of opportunities for investors and residents alike. The Cleveland housing market is rebounding. All indicators point to growing income, a solid job market, and increasing home values in Ohio. The Cleveland real estate market prediction is incredibly positive. Investors and home buyers will reap benefits when considering the city and its suburbs over the next few years.

Cleveland is home to just under 400,000 people. The larger metropolitan area is home to roughly two million people. That makes the Cleveland real estate market the 32nd largest in the country. If you include the Cleveland-Akron-Canton metro area,  ( Areas that we are also looking at as a company ) there are three and a half million people in the “combined statistical area”, making it the 15th largest metropolitan area in the United States. This century old city was once a major manufacturing center. It is reinventing itself as a medical and biomed hub. Let us discuss the latest market trends and find out what are the prospects of Cleveland real estate investment in 2019.

In 2018, a forecast for the Cleveland, Ohio housing market suggested that home-price appreciation could begin to slow down, following a year of double-digit gains. In a separate report, Cleveland was singled out as one of the cities where it’s actually cheaper to buy a home than to rent.

Home prices in Cleveland rose steadily and significantly during 2018, and they were expected to continue trending north for the foreseeable future. This is according to a recent forecast for the Cleveland real estate market that stretches into 2019. The median home value in Cleveland is $55,300 on Zillow. Cleveland home values have gone up 7.8% over the past year and Zillow’s Cleveland real estate market prediction is that the prices will rise even more in 2020.

The median list price per square foot in Cleveland is $69, which is lower than the Cleveland-Elyria Metro average of $109. The median price of homes currently listed in Cleveland is $79,900 while the median price of homes that sold is $65,500. The median rent price in Cleveland is $900, which is lower than the Cleveland-Elyria Metro median of $1,100.

Both of these aspects meaning investors can purchase cheap houses with decent rents producing double digit returns in the high teens.
 
The Cleveland housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the Cleveland housing market trend prediction is 83%. Accordingly, LittleBigHomes.com estimates that the probability for rising home prices in Cleveland is 83% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
 
All of these factors certainly point towards what we are already starting to see,  higher prices and lower available inventory in the price range that we normally look for. 
 
I think that we will see another 12 months out of this market but my advice for any investors sitting on the fence or others that are looking at adding to their own current portfolio is “ Don’t waste any time and get involved now “ 
 
I see the same thing happening in Cleveland that happened in the Orlando market. 8-9 years ago we were seeing a single family home sold for 50k USD with rents of $1,000 and a CAP of 20%. The same house now will cost 100k and the rents are the same. We could be looking at the same thing in Cleveland in 4-5 years time. 
 
We have new inventory hopefully coming on this week so for anyone interested contact any of the sales team at Global Investments Incorporated or email us at   invest@globalinvestmentsincorporated.com
 
Please go to our site to see all our latest inventory. 
 
Mike Moodie – CEO. Global Investments Incorporated. 

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