The city that houses the Rock and Roll Hall of Fame is rocking! Rock bottom housing prices triggered a rebound in both home sales and prices in Cleveland, one of the nation's hardest hit housing markets in the financial crisis. When home prices got low enough in Cleveland the market finally took off.
In the midst of the worst recession that Cleveland has weathered since the Great Depression with growing unemployment and foreclosures projected to rise in the early part of 2010, growing evidence suggests the recovery will last into at least most of the New Year. Cleveland has been hard hit by the foreclosure epidemic, and little has been done by most lenders to help those caught up in the crisis.
Propelled by the federal governments first time buyers' tax credit and expansion of the program for move-up buyers, home prices are on their way up in Cleveland for the first time in more than four years. After home prices fell as much as 80% from the markets peak, Cleveland hit bottom. Housing values in Cleveland are forecast to inflate 10.4% in 2010.
As the most populated city in Ohio, nearby Columbus is making strides towards pulling out of the slump with lower home prices. Rising foreclosure sales in both Cleveland and Columbus are helping to strengthen home sale numbers, which should be stronger in 2010. Columbus home prices are projected to rise 9.4% by year's end.
| City |
Forecast |
| Columbus |
9.4% |
| Cincinnati |
8.8% |
| Cleveland |
10.4% |
| Dayton |
6.4% |
| Toledo |
6.5% |
Toledo home prices are edging upward slightly as sales improve as a result of lower prices and the government's tax incentives. But a growing number of homes are under-water in Toledo, long ailing from the repercussions of the financial crisis.
Toledo has experienced pressure on housing prices since the downturn started with rising unemployment. Jobs are the top indicator for the housing market. A second wave of foreclosures, projected for the early part of the year will damage the market, but only temporarily with forecast housing values to rise 6.5% in 2010.
In Greater Cincinnati the market is beginning to show signs of a real recovery. The market is gaining strength with rising sales, and should be boosted by the expansion of the tax credit to move-up home buyers.
However, any strong performance recovering from the downturn will have to be sustained after the tax credit extension expires April 30th, and that will be an uphill battle with the stalled current mortgage lending markets. But because home prices are comparatively low in Cincinnati, the market is forecast to see average housing appreciation of 8.8% in 2010.
Dayton's housing market has weathered the downturn better than other parts of the state since it didn't see the record numbers of subprime and adjustable rate home buyers lose homes to foreclosure. As a result, Dayton should see slighter appreciation for the year at just 6.4%.
