By Nora Tooher
The Cleveland-Elyria-Mentor metro area housing market is one of the weakest in the country, according to a new report.
The study by the Demand Institute, a nonprofit think tank operated by the Conference Board and Nielsen, places Cleveland in the bottom 10 of the nation’s 50 biggest metros in terms of the median increase expected in the price of a single-family home.
The Cleveland metro area’s median house price is expected to climb only 9 percent to $122,000 in 2015 from $112,000 in 2012. By the end of 2018, the metro area’s median house price is expected to reach $126,000 – a total 13 percent increase from 2012.
The research team identified nine distinctive groups of American communities. Cleveland is classified as an “endangered” community; Tallmadge is considered a “traditional suburb,” where the housing market has held relatively steady.
The median home price in Tallmadge of $158,000 has increased 14 percent since 2000, the study said. Statewide, the median home price in Ohio is expected to rise 22 percent to $137,000 from 2012 through 2018.
Among the 50 largest metro areas, Washington, D.C., is expected to have the lowest home price appreciation, at 7 percent, followed by Oklahoma City, 10 percent; Denver, 11 percent and Minneapolis, 12 percent. Phoenix, Raleigh, N.C., and the Los Angeles metro area are all expected to have the same 13 percent price appreciation as Cleveland.
Memphis, Tenn., and Tampa, Fla., are expected to have the strongest median increase –33 percent – in the price of a single-family home from 2012. Other markets where big increases are forecast are Jacksonville, Fla., 32 percent; Milwaukee, 30 percent and St. Louis, 30 percent.
At the national level, the study predicts the median price for an existing single-family home to rise by an average of just over 2 percent annually between 2015 and 2018. But price increases in the strongest markets will be more than three times higher than in the weakest ones.