PARMA Market Update

The real estate market in Parma, OH, has been experiencing steady changes throughout 2024, making it an exciting time for both buyers and sellers. Known for its suburban charm, affordability, and proximity to Cleveland, Parma continues to attract new residents, while long-time homeowners see continued growth in home values. Below, we’ll dive into the key trends and statistics shaping Parma’s real estate landscape this year.

1. Median Home Prices

As of today, the median home price in Parma has seen a significant increase. The average home price in the city sits at $215,000, representing a 8% increase compared to last year. This rise is largely fueled by continued demand for affordable housing in the Greater Cleveland area, where Parma is seen as an attractive option due to its lower cost of living and solid community amenities.

2. Housing Inventory

The supply of homes in Parma remains relatively tight. There are approximately 0.6 months of inventory currently on the market. This figure indicates that Parma is still very much in a seller’s market, as there is not enough inventory to meet the current demand. A balanced market typically has 5-6 months of inventory, so the competition for homes continues to drive prices upward and reduce the amount of time homes stay on the market.

3. Days on Market (DOM)

Homes in Parma are selling fast in 2024, with the average days on market sitting at just 17 days, compared to 20 days at the same time last year. This reflects the high demand for homes in Parma, with well-priced properties often receiving multiple offers within days of listing. Sellers are benefiting from this quick turnover, while buyers need to be prepared to act swiftly.

4. Buyer Demand

There’s been a steady inflow of buyers, particularly from Cleveland and its surrounding suburbs, drawn to Parma for its affordability, excellent school systems, and proximity to major highways. First-time homebuyers and young families make up a significant portion of these buyers, many of whom are looking for single-family homes with ample yard space, which are still relatively affordable compared to nearby areas.

5. Mortgage Rates

Interest rates, hovering around 6% right now, have impacted some buyers' purchasing power. However, despite these slightly higher rates, demand remains robust, particularly because Parma offers more value for the money compared to other cities in the region. Buyers are balancing higher rates with the still-accessible home prices.

6. Types of Homes in Demand

In 2024, three-bedroom, two-bathroom homes are the most sought-after properties in Parma. Buyers are particularly interested in homes that offer modern updates, especially in kitchens and bathrooms, but there’s also been a rising trend of buyers looking for homes with potential for renovation. Single-family homes remain the dominant property type in Parma, though there has been a slight uptick in interest in smaller, low-maintenance condominiums from downsizing retirees.

7. New Construction

While new construction isn’t as prevalent in Parma as in some neighboring areas, there are a few developments aimed at meeting the demand for updated housing. New builds tend to focus on smaller communities or infill projects, with prices generally starting higher than existing homes, around the $250,000 to $300,000 range. For buyers seeking modern amenities in brand-new homes, these developments provide a good alternative to purchasing older homes in need of updates.

8. Outlook for the Rest of 2024

Looking ahead, the Parma real estate market is expected to remain competitive for buyers, with continued price growth, albeit at a more moderate pace than the past two years. As the broader economy stabilizes and mortgage rates remain somewhat elevated, buyer demand may cool slightly, but Parma is likely to remain attractive due to its affordability and quality of life.

Final Thoughts

The Parma real estate market in 2024 is thriving, marked by rising home prices, fast sales, and strong demand. For sellers, it’s a prime time to list, while buyers need to move quickly when they find the right property. Whether you’re buying, selling, or just keeping an eye on the market, Parma offers a lot of potential for all types of real estate investors.