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.
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In the last year, home upgrades have been on people’s minds in Farmington Hills, Michigan and across the country. One of the most popular areas people have focused on is the backyard, either with an updated outdoor kitchen, more space for relaxing, or even, a hot tub. In addition to the added relaxation benefits of a hot tub, homeowners can also see a bonus of adding value to their homes. In a recent report from the real estate experts at HomeLight, agents across the country reported that the value of an inground hot tub increased by more than 70 percent since the arrival of Covid-19. On average, agents estimated that before Covid-19, a house with an inground hot tub sold for about $4,000 more than one without, while post vaccine today, buyers will pay nearly $7,000. Let’s take a closer look at how the value of hot tubs has changed in the Midwest during the last year.
The value of a hot tub
Post-vaccine, the Midwest saw a value increase of 74 percent for inground hot tubs, from $1,890 to $3,899. Who can deny the appeal of a hot tub all year round, even in the winter, turning the water temperature up to a toasty 102 degrees. Moreover, a spa can be a plus in the summer too, as HomeLight data shows that if your pool has a hot tub, you’ll get nearly $7,000 more at sale time. Some people opted for above ground options, not wanting to invest in the more expensive inground spas. And the value of a freestanding hot tub has gone up as well when selling a home, to 118 percent since before Covid-19 from $708 to more than $1,500.
But will you recoup the costs?
In the midst of Covid-19, people were longing for more luxury at home, leading to the addition of spas in all forms. But will you get a return on your investment? The answer depends on your market and the type of hot tub you’ve added. Keep in mind that freestanding hot tubs are considered personal property and aren’t factored into the overall value of a home. That said, buyers can offer to pay sellers for it separately, and data suggests that buyers might be willing to pay extra for this bonus feature. According to HomeAdvisor, entry-level hot tubs cost between $2,000 and $6,000, while mid-level ones cost $4,000 to $8,000. If you’re selling an entry-level tub in great condition, that means you could recoup your costs or get close to them.
Is that hot tub worth the investment? With so many factors to weigh, it’s hard to say for sure and your real estate agent may be your best source to determine how much that hot tub is really worth. However, there is no doubt that extra relaxation amenities are a plus for home buyers in the post-Covid-19 world, no matter what type of hot tub you opted for. Call me or contact me to find the perfect home with an inground hot tub for you and your family.
We all know that this sellers market would not last too much longer and it seems to be coming to an end sooner than later. The turn towards a more favorable buyers market seems to be taking place with 14% of all listings taking a price reduction in June of this year which is up from just 11% in 2016. Everywhere you turned you heard nothing but, It’s a sellers market and a great time to sell! which was true and still is in some areas of Oakland County Michigan like Farmington Hills, West Bloomfield and others, but are the sellers realizing that things are changing in the opposite direction now that we are approaching fall of 2018?
In my business here in Oakland County Michigan, things seem to have been in a stalemate between home sellers and home buyers resulting in many homes staying on the market for longer periods of time then expected, even surprising us professional Realtors. The potential home buyers seem to know that the buyers market will soon be upon them, with the home sellers still bent on getting top dollar or even more. In Farmington Hills where I have several listings that get many showings, but no one is presenting or moving on them which leaves the sellers thinking “why isn’t my home selling” which leaves us to have to try and explain what is happening when we know the market trends seem to be pointing to a buyers market in many areas.
Part of this can be explained by rising interest rates, builders not meeting demand and foreclosed homes being bought in the past and are now rentals. The simple explanation is supply and demand in which was never reached that housing demand when prices were rising upward. The trend now seems to be on the downward swing especially on the high end housing communities in which rising housing prices benefitted those areas more favorably (which lately have seen close to 20% in their inventory price reductions). A buyers market is not a bad market but getting home sellers to realize and be more realistic in pricing their home may keep us in the black for the meantime while the housing market adjust to the coming changes.
The market changes will happen and it will correct itself as I feel this is exactly what this shift means. The supply and demand aspect of this years upswing left the market unable to respond to the needs of the home buyers, so a slight buyers market may correct the voids that this years home buying and home selling season missed out on. The market will shift back and forth but this home selling and buying season seemed to have ended with a slighter advantage headed toward a buyers market.
Are you planning to take the FSBO route for your Farmington Hills Michigan real estate? Before you put up that sale sign, there’s one thing that we would like to ask:
Can you handle this deal “ALL ON YOUR OWN”?
Your Farmington Hills Michigan Real Estate Agent Benefits You
Let’s not be too hasty by saying “yes”. If you are thinking about saving that commission, which you have to pay to the real estate agent, then we would like to tell you a small fact:
You might not have those savvy negotiations skills that are required to cut a profitable deal… which means that you will be losing money on the sale price.
The one thing that real estate agents excel at is bringing you multiple buyers and selling your house at a price that is higher than you expected. They take care of everything involved in the process such as staging, online marketing, open houses, mortgage advice, closing, deed transfer, etc.
Are you confident you can handle this by yourself?
This is why we believe that hiring a real estate agent is in your and your house’s best interest. Following are five reasons why you should hire a real estate agent when putting up your home for sale:
1. The Right Listing Price
When it comes to real estate, agents have in-depth knowledge about the current market. The price is not simply set but the agent makes evaluations by comparing your home to the comps and then lists your house at the right asking price. This gives you a guarantee that you will get offers from serious buyers.
2. More Buyer Exposure
The moment your Farmington Hills Michigan real estate will go on the market, rest assured, you will receive an offer or three in just a week. Real estate agents have amazing listening and marketing skills. During an open house, they keep their eyes and ears open to gauge the expressions of the visitors, so that they can make the necessary changes to the house.
3. Higher Offers
When yours and the buyer’s real estate agent come together, they think of the house objectively. This allows them to come to a negotiation that benefits both parties.
4. Better Negotiation Skills
Let’s say that during the inspection, your home for sale revealed a nasty repair. There’s a possibility that the buyer might back out of the deal. However, with a real estate agent by your side, you will be able to better tackle this problem. In cases such as these, the real estate agent assesses the situation and then includes incentives in the deal to keep the buyer satisfied.
5. Speedy Closing Process
The closing process involves a lot of paperwork that needs to be stamped, signed and checked at the county’s record office. You need to have connections with the right people, who can move this process along fast. This is where the real estate agent comes in. They make sure that all documents are signed and the deal is closed within the 60 days window.
If you think about it, a real estate agent sort of has magical powers that can help you sell your house for top dollar. If you are looking for such a competent real estate agent who will help you sell your Farmington Hills Michigan real estate then visit Homes2MoveYou and get your house listed now on the website.
In today’s increasing technology through smart phones, tablets and other devices that make life easier for Farmington Hills residents, everything from shopping, local secretary of state appointments and driving directions can be done with assistance through a smartphone app. It is really no surprise that even Farmington Hills home shoppers & home sellers can go on their smartphones to determine where, when and what home to look for that meets their needs when buying or selling a home.
We all know that the first thing that Farmington Hills home shoppers & home sellers will see is a photograph of either a their home or one that catches their eye as they scroll through their smartphone or device, this is why it is vital that the first impression for Farmington Hills home shoppers and home sellers be the best photography as possible, and yes, be optimal for smartphone use.
In a recent National Association of Realtors study showed that 89 percent of buyers who searched the internet for homes stated that the photographs of the homes were the most important feature to them. This makes sense as the new Farmington Hills home shoppers & home sellers are constantly discovering new apps that make their lives easier especially during a new home search. Read More Here
Give Farmington Hills Home Shoppers & Home Sellers Your Best Shot
Although technology is always changing and challenging to realtors, it is vital that we stay in step with the technology in order to give our Farmington Hills home shoppers & home sellers the ability to see the best that a property can look like photography wise and truly represent our clients with the best listings as possible, but yet we still see some pretty bad photos of homes that would make any potential homebuyer or home sellers scroll right past it not to ever be looked at it again.
For the best results for your Farmington Hills home marketing, I take pride in the photography that I provide to my clients so that they have the best chance of getting a buyer to fall in love with their home. Give me a call 248-790-5594