Home Prices: Desperately Seeking Stability

Last week, we participated in a forum, “Beyond Foreclosure: Small-Scale Solutions That Work,” at the Levin College of Urban Affairs at Cleveland State University.

Among the panelists was Brian Mikelbank, Director of the Center for Housing Research and Policy at Levin College. In his presentation, Mikelbank cited data showing that the number of foreclosures in Cuyahoga County was beginning to level off. This is good news, and a sign that home prices are beginning to stabilize in Northeast Ohio.

Cleveland has always been known for its stable, affordable home prices. According to recent research by Forbes Magazine, Cleveland is one of the most affordable cities in which to own a home; the average cost of owning a home here is $978 per month, including taxes, insurance, utilities and condominium/association fees.

Amidst the blitz of news about financial markets this week, it was announced on Wednesday that home prices in Cleveland dropped only .3 percent from June to July. This followed a gain of .7 percent from May to June. These numbers contrast with Sun Belt states, which dropped more significantly and, most experts agree, have further to fall before reaching stability.

Finally, despite the tightening of credit, it’s still possible to obtain a good loan in Northeast Ohio and across the U.S., particularly with rates on 30-year fixed mortgages remaining at historic lows. FHA, in particular, has stepped up and enabled many people to obtain mortgages on owner-occupied properties.