The housing market has taken a lot of people by storm recently. Homeowners, Realtors, home buyers, and mortgage brokers in Oakland County can probably attest to that. Residential real estate sales in cites such as Farmington Hills, Novi, Northville, and West Bloomfield have been booming. Home prices have been on the rise as has sales transactions.
Looking at the high number of homes for sale in Oakland County, MI, there may be some indicators that a homes for sale in oakland county market may be on the horizon. If you are a home seller or buyer who has been trying to time the market, there are some housing sales trends that will be of interest to you. However, like all trends, even the experts find it challenging to determine the exact timing of upswings and downturns.
What are Some of the Indicators of a Cooling Housing Market?
In a red hot real estate market, home prices tend to go sky high, and the number days that homes for sale in Oakland County, Michigan remain on the market is impressively low. Houses sell fast at their asking price and frequently above the listed price.
Never underestimate the wisdom of the rule of supply and demand. When the supply of homes for sale in Oakland County, MI exceed the demand, this is a signal that something is changing. This may or may not mean that there are many homes just listed on the market. What you could be witnessing is that homes are on the market for longer than they used to be, and the demand is not keeping up with the supply.
There appears to be some subtle undertones in the Oakland County, Michigan housing market according to some people who are watching it closely. When one piece of the puzzle waivers even slightly, it could be the beginning of a domino effect that is about to happen. If their home is not selling as quickly as expected, a homeowner reacts by lowering their asking price. If this happens enough, other sellers are forced to lower their price to be competitive in the Oakland County, Michigan housing market.
This has a negative impact on home sellers who, of course, want to get top dollar for their real estate. It does, however, open up an opportunity for the buyers. A first-time buyer may now find themselves able to purchase a home in a market that was previously price prohibitive for them as long as they can qualify for a mortgage.
The Economic Unknowns in 2021
There are many economic unknowns at this time, and more seem to come into play all the time. While many people are talking about Washington DC’s inclination to raise interest rates, it’s a bit of a mystery so far. A rise in the prime interest rate will be reflected in the rate at which a consumer can obtain a home mortgage. Uncertainty slows down many sectors, and the residential real estate market is no exception. Potential buyers in the Oakland County, Michigan housing market may be forced to take a “wait and see” attitude before they buy a house.
Many people are concerned about the uncertainty of the stock market and what this could mean to their personal erage American home buyers in Oakland County, Michigan have IRAs and 401ks they need to protect, and that will negatively impacted whether they believe they are ready to buy a new home.
Another economic uncertainty is also likely to bring on a cooling housing market in Oakland County and across the country for that matter. There is an ongoing threat that higher taxes will be imposed on businesses, corporations, and individual taxpayers. If this new tax policy was to get passed, the impact would affect people in every income level. Businesses have historically reacted to higher tax rates by laying employees off and decreasing hiring. Fear of losing their job is another reason why people put off buying a house and taking on any new financial obligations.
Another current issue that could cause a cooling housing market in Oakland County, Michigan is the rising rate of inflation that people are already feeling in 2021. People are paying more for practically everything, and their money is not going as far as it used to just a year ago. This, combined with the other aforementioned new developments, is not going unnoticed by consumers in Michigan. When consumers get “hit in the pocketbook” or wallet, they understandably change their buying habits. With so much negative economic news, however, it doesn’t necessarily mean that the real estate market in Oakland County will come to a standstill. Even if home sales slow down, home sellers should remember that it has been in quite a boom.
A boom in real estate is a trend that comes and goes from time to time. People will always want or need to move for one reason or another. Homes that are priced right will continue to sell, and buyers will continue to buy them. The days of bidding wars may be fewer and further between, but it’s always exciting when it happens! Now that school is open again after summer vacation, the families of Oakland County are hopefully all settled in their lovely new homes. Farmington Hills, Novi, Northville, West Bloomfield, and all of the other wonderful communities in Oakland County are great places to live, work, raise a family, or just live life to the fullest as an empty nester.