Midwest Housing Markets Show Resilience in Buyer Demand

Several Midwest housing markets are showing signs of resilient buyer demand compared to other parts of the country, with pending home sales keeping pace with new listings even as purchase mortgage activity remains largely flat or declines (HousingWire). Columbus, Ohio, had 127 pending sales for every 100 new listings as of Nov. 6, according to HousingWire Data. Cincinnati followed at 125. These markets were well above the national average of 95 pending sales per 100 new listings, while Cleveland (91) and St. Louis (90) were running slightly below the U.S. average. [1]

The same markets also had median list prices that were considerably lower than the national average of $429,000. Cleveland led the way at $174,000, followed by St. Louis ($225,000), Columbus ($255,000) and Cincinnati ($300,000) (HousingWire). In St. Louis, buyers remain active despite elevated mortgage rates, although they are being more deliberate about their decisions, said Greg Iverson, a divisional sales manager for Neighborhood Loans. Mortgage rates above 7% have added to the rising costs of property taxes, homeowners insurance, building materials and home repairs. [1]

Purchase lending remains mixed, with Mortgage data platform Modex showing that purchase lending has been relatively steady in several Midwest markets, but it has not uniformly increased (HousingWire). Cleveland was the only one of four Midwest metros in HousingWire’s comparison to record year-over-year growth in purchase loans from January through July, with 11,809 loans, up 0.9%. Cincinnati recorded 14,048 loans, down 2.2%, while Columbus had 12,820, down 2.7%. St. Louis recorded 9,811 loans, a 6.8% decline. [1]

Modex data indicated that median purchase loan amounts in these Midwest markets ranged from $217,075 in Cleveland to $294,566 in Columbus (HousingWire). Lower loan amounts and home prices could attest to some of the Midwest’s relative resilience. More than 20% of purchase loans in Cleveland and St. Louis were for less than $150,000. But the resilience is still being tested. [1]

Several Midwest housing markets are showing signs of resilient buyer demand compared to other parts of the country, with pending home sales keeping pace with new listings even as purchase mortgage activity remains largely flat or declines (HousingWire). Columbus, Ohio, had 127 pending sales for every 100 new listings as of Nov. 6, according to HousingWire Data. Cincinnati followed at 125. These markets were well above the national average of 95 pending sales per 100 new listings, while Cleveland (91) and St. Louis (90) were running slightly below the U.S. average. [1]

The same markets also had median list prices that were considerably lower than the national average of $429,000. Cleveland led the way at $174,000, followed by St. Louis ($225,000), Columbus ($255,000) and Cincinnati ($300,000). In St. Louis, buyers remain active despite elevated mortgage rates, although they are being more deliberate about their decisions, said Greg Iverson, a divisional sales manager for Neighborhood Loans. Mortgage rates above 7% have added to the rising costs of property taxes, homeowners insurance, building materials and home repairs. [1]

Purchase lending remains mixed, with Mortgage data platform Modex showing that purchase lending has been relatively steady in several Midwest markets, but it has not uniformly increased. Cleveland was the only one of four Midwest metros in HousingWire’s comparison to record year-over-year growth in purchase loans from January through July, with 11,809 loans, up 0.9%. Cincinnati recorded 14,048 loans, down 2.2%, while Columbus had 12,820, down 2.7%. St. Louis recorded 9,811 loans, a 6.8% decline. [1]

Sources

HousingWire

Prepared with AI assistance from the cited sources.