The Cleveland Real Estate Market

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An interesting situation is brewing in the Cleveland real estate market wherein the large number of properties up for foreclosure has caused home prices in general to sink to lower levels.

This early in 2008, a number of banks and lending institutions have already begun to unload properties at incredibly low prices. In fact, the current median home sale prices in the city has fallen to 75 percent. In comparison, the median prices in the first six months of 2007 ranged from around $62,000 to $15,500.

Some of the areas in real estate Cleveland that have seen steep declines in the prices of homes are Maple Heights, Garfield Heights, Euclid, Bedford Heights, Warrensville Heights, East Cleveland, Cleveland Heights and South Euclid. These communities have been experiencing unprecedented foreclosure rates in recent years.
Around forty percent of the single-family residential properties sold in Cleveland in 2008 were bought for less than $10,000. In addition, only 27 percent of these types of homes sold for more than $50,000, with more than 60 percent of those located on the West Side.

Most of the people looking to buy and sell properties in Cleveland nowadays are speculators and companies from out-of-town that are aiming to make quick profits on the city's plentiful supply of homes in need of repair or more extensive rehabilitation.

Two of these companies are Stonecrest Investments operating out of San Jose, California, and Blue Spruce Entities operating out of Rapid City, South Dakota. These two companies in particular have been some of the most prominent buyers and sellers of real estate property in Cleveland in the past year. Stonecrest actually bought 62 single-family properties in 2008 at the average price of just a little more than $1,500.

Blue Spruce Entities for its part began purchasing homes in Cleveland and East Cleveland beginning in early 2007. The company has since sold 35 single-family residential properties for an average price of a little less than $1,200. Many of Blue Spruce's acquisitions have been sold to TSE Properties LLC operating out of California.

If you were to look at the real estate figures, the numbers by themselves would make it seem as of the housing market in Cleveland is on the brink of collapse as prices fall way below the past levels. There are many in the industry who feel however that things are not as bad as the numbers would indicate. Certain research and county property records show for example that most of the sales of property activity in the city are of homes that are due for foreclosure. Property owners who have equity in their homes on the other hand are mostly waiting for the housing market to experience an upturn.

In fact a few lending institutions have begun to develop programs that will allow borrowers to combine the purchase price and repair costs of their homes into a single loan. These programs are a boon to first-time property buyers and people who are willing to put in the work to repair their homes.

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