State of the Real Estate Market: Cleveland's eastern suburbs, January 2009,

The current real estate market is favoring buyers in a most pronounced, lopsidedly beneficial way. Prices are back down to pre-internet boom, pre-technology bubble levels... nearly those of 1994 to 1998. Interest rates are near the lowest levels since World War II and the start of the Baby Boom. More homes today in the Cleveland area are sold by banks and HUD than are sold by private owners. Credit is still readily available to those with clean credit histories and steady employment, thanks in part to broader FHA financing.

What I see in the market today are the most serious sellers competing for very few buyers--very value and condition sensitive buyers, I might add. Those sellers who are not 100% committed to doing WHATEVER IT TAKES to get their homes sold are choosing to take their homes off the market or not list their homes at all, or are clouding, cluttering, and confusing the market with their over-priced property and their wholly unrealistic expectations.

The actual number of homes selling in the market remains steady, though at prices nearly half the level of December 2006. On Cleveland's east side, including Cleveland Heights, Shaker Heights, Beachwood, University Heights, South Euclid, and Lyndhurst, 115 homes sold in December 2008, while in December of 2006 110 homes sold--however, prices of sold homes are down 51% in December 2008 from the level of December 2006: from a median average of $154,000 to $75,000. Ouch. The average sold is down from $207,788 to $109,650. Interestingly, inventory levels are down, as sellers realize that now, this year, this market, may not be the right time to sell. In December of 2006, we had 15 months worth of homes to sell, now we are down to 10 months of inventory. If you think it is a seasonal low level of homes, you're wrong. The seasonal low level has historically been evident in April and May, the end of the spring selling season. Fewer sellers need to sell, and they are unwilling to compete against these banks to attract and secure those finicky few buyers who are looking for ridiculous bargains, and finding wide choices!

Sadly, many agents are exiting the industry, nearly 30% over the last 24 months in the Cleveland area, unable to compete for the few buyers confident enough to buy or to find success for their sellers. This is not an environment that allows an agent to test the market with an overpriced home, and sellers persuaded to list their home at $250,000 are surprised and reluctant to adjust their price down to $189,000 to get it sold. Right now, price and condition rule.