My Blog

2018 Summer Market Update

7/31/2018

To say the least, 2018 has been an excellent year for real estate sales.  The pace has been hectic!  As homes come onto the market, showing appointments start.  Soon they begin to overlap and before you know it, the listing agent is calling for “highest and best” offers.  Six to eight offers per listing is not unusual.  If the home is clean, updated and priced correctly, it will sell quickly.  Buyers tend to primarily focus on condition, price and location.  Homes that are overpriced, dated or have not been well maintained tend to languish on the market longer and generally achieve a lower sale price than the seller(s) anticipated. 

Buyers are getting smarter about the whole home buying process and many are doing their research before engaging the market.  They know what they want, where they want it and how much they are willing to pay for it.  They understand that they’ll need a strong mortgage pre-approval letter and an agent with the experience and knowledge to prepare a strong offer and get that offer accepted (which is not easy in this market!)

Our inventory of saleable properties remains painfully low.  After three remarkable years in sales, we just do not have enough homes available to meet with the demand.  Prices have begun to stabilize in most areas which is, truthfully, a good thing.   In the long run a stable market has much more endurance that an upward spiraling one.  The old adage, “What goes up must come down” is a proven statement.  Price stabilization will be better for continued market growth and limits the potential of a market correction or, Heaven forbid, crash.

 The bottom line is that now is an excellent time to list and sell. 

2016 Spring/Summer Market Update

5/13/2016

Temperatures are warming up and the Spring Market in breaking wide open. As I had anticipated last year, 2016 has all of the ingredients necessary to prove itself to be another banner year in real estate.  Sales have already picked up significantly and many buyers are trying to get a head start before all of the craziness begins. 

As of this writing we still have a very low inventory of properties available for sale. As we move forward into the summer months, this may improve somewhat but it will not meet market demand and homeowners will continue to see prices move higher.  This increase will not hit every neighborhood or city and it will not be as significant as in 2013 or 2014.  Price movement will be in the 3-4 per cent range for the season overall and may hit as high as 6 per cent on some higher end properties.  The reason they will capture the best gain is that they suffered the most during the Great Recession.  Basically, it's pay back time.  To continue to grow or even just maintain a status quo, luxury homes have to keep moving and a reasonably dependable market demand must keep them moving or prices will eventually flatten or begin a slow and almost unnoticeable descent. Time will tell.

Mortgage rates have remained fairly solid and the great rate hike that was the talk of town last year never materialized. The mortgage loan process has slowed down with the new government regulations so, instead of thirty days to close it now takes about forty-five.  If you go with FHA, FHA 203K Financing or VA Loans, you may be looking at about sixty days.  Government sponsored mortgages take a bit longer due to appraisal, inspection and certification issues.

In summary, it is a "thumbs up" year for both buyers and sellers as well as our overall national economy. Keep your eyes and ears open as election time approaches though.

2015 Spring Update

4/18/2015

Finally, at long last the outside temperature is slowly starting to climb and after another Michigan winter we are all ready for some warm breezes and bright sunshine.  With real estate, the spring market is just starting to heat up too.  Every indication is that this may be the best year we've had in quite some time.  Mortgage rates have remained extremely low and that's good news for buyers.  As for sellers, property prices should continue to improve in many areas and demand should exceed supply as it did last year. 

The problem we face as real estate agents is working with a shortage of inventory.  It's like running a clothing store without any depth of stock.  Customers come in looking for something to buy and cannot find the right outfit because there isn't a sufficient selection on the shelves.  In my business, homes for sale are the stock the customers want to see.  Like the clothing store, if we can't find them the right home because of a shortage of inventory, they end up walking away with nothing.

If you have a friend, relative or business associate that is thinking of selling their home in the near future, I hope that you will suggest that they give me a call.  I will be happy to meet with them, preview their home and then do a comprehensive market analysis to determine the value of their property.  I will also review the home selling process so they will be fully prepared if they decide to list their home.

In closing, I want to wish you the very best of everything as springtime unfolds and we all look forward to the forthcoming warm weather.

2014 Summer Update

6/26/2014

The Summer Market is now in full swing and business is more brisk that ever.  Mortgage rates have remained relatively low, the appraisal process has improved and there are more active buyers than ever. All elements of the housing market are involved and moving quickly from modest homes to the high-end luxury market.  Attractive, well maintained and updated properties that are well priced are seeing multiple offers within twenty-four hours of coming onto the market.  There is no indication of this activity slowing down as we progress into the season. 

Prices are increasing modestly and we are starting to see some "For Sale By Owner" signs pop up again, which is the strongest indicator that we are in a "seller's market."  For the first time in a long time we are seeing continued signs of economic progress and stable economic growth.  2014 was projected to be, and is going to be, a very good year for home sales and purchases.

2014 Spring Market

3/15/2014

We have all gone through one of the hardest winters Michigan has had in a number of years.  Both temperature and snowfall records were broken and we are still not out of the woods yet.  The good news is that we are on the front edge of the 2014 Spring Real Estate Market.  All it takes is that one weekend when thermometer hits 50+ degrees and that usually kicks things off. 

Last year was one of our best in the housing market.  In fact, it rivaled 2005, the last strong year before the economic recession hit.  Now, we are looking at a continued strong market for 2014.  Home prices are starting to rise, inventory levels and mortgage rates are staying low and buyers are actively searching.  These are the perfect ingredients for successful sales with a positive impact on housing prices.

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