Recession Possible-Home Shoppers, Real Estate Experts Are Optimistic

Recession Possible-Home Shoppers, Real Estate Experts Are Optimistic

Most experts predict that following a seven-year period of economic growth the US economy is headed towards a recession (most likely sometime in 2020). But while The Great Recession devastated the housing market, house shoppers remain optimistic about how the market will handle a potential recession in the coming years.

Expect A Recession But Remain Optimistic

According to a recent survey from Realtor.com, nearly 70 percent of home shoppers said they expect a recession to hit the US economy sometime in the next three years (by 2022). But despite the fact that most believe a downturn is looming, many remain optimistic about the housing market, with 41 percent of home shoppers predicting the market would fare better than it did in 2008.

The experts agree. “When the U.S. enters its next recession, it is unlikely that the housing market will see a sharp nationwide downturn. The same record low inventory levels that have made buying a home so difficult recently will likely protect home prices in the next recession,” said Realtor.com’s chief economist Danielle Hale in the article.

The Takeaway

If you’re thinking about buying a home, don’t be nervous. There might be talk of an upcoming recession (and, obviously, you’ll want to do your own financial due diligence), but the optimism about the housing market from consumers and experts alike is a good sign.

If you’re considering buying a home, ask any real estate agent worth their salt and they’ll tell you: NOW is the time to do it.

The real estate market is seemingly changing by the day, and if you want to get a great home for a great price, making a move now is in your best interest; conditions a year from now (or even six months from now) aren’t likely to be as hospitable.

And why is that? Why shouldn’t you, if you’re interested in buying a home, wait? Why is NOW the time to make a move?

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Home Seller Offers-Response Time Is Important

Home Seller Offers-Response Time Is Important

In today’s Oakland County Michigan housing market it is important now more than ever for home seller offers to respond to a buyers offer for purchase of their home, usually the time frame would be within twenty four hours which allows for the home seller offer to have plenty of time to be reviewed,considered and possibly allow time for the listing agent to review with their home seller as well. Although the twenty four hours is the standard, there are times that this is not possible as some home sellers are out of town,family issues or other events that may prevent them from being able to respond within the time frame which would require your real estate agent to write an extension which would allow more time for the review of the home sellers offer.

Although the timing may change for your sellers offer to get reviewed and the home buyer will most of the time understand that this is a process and their offer may take a little longer to get an answer, there are other issues to look out for. Unfortunately we have home sellers that have multiple offers in hand and seem not to be in any hurry to accept and of the seller offers that they have and you may wind up as a home buyer getting into a highest and best offer situation, its always best if your buyers agent ask beforehand if their are other offers on the particular home your trying to purchase. Most realtors will tell you if they have multiple seller offers on a particular property. As your realtor we will inform you on the best ways to handle this situation if it arises while presenting your offer the the sellers agent.

Lets Breakdown The Sellers Offer Process

When a home owner receives a legitimate home seller offer in writing, the seller can accept the offer, reject it, make a counteroffer, or do nothing. While the home owner is not legally bound to respond, if a seller doesn’t respond in a timely fashion, the buyer might become irritated and lose interest in the property.

Protection For Home Buyer and Seller Offers

Most real estate contracts contain an expiration date. If the seller doesn’t respond to the seller offer by the specified date, the agreement becomes null and void, unless the buyer agrees to reopen negotiations

Advice For Both Home Buyer and Home Seller With Offers

As a seller, your response time might defer depending on market conditions. Responding quickly makes sense in a down market, whereas responding slower in a thriving market could give the seller more time to receive multiple offers. A good practice for both buyers and sellers is to respond to any offer or counteroffer quickly and decisively unless circumstances warrant otherwise.

Remember buying or selling a home is one of the most important financial decisions you can make in a lifetime. It would be my pleasure to assist you in all of your home buying and home selling needs here in Oakland County, Michigan, please feel free to call me anytime 248-790-5594

 

 

Oakland County Michigan Housing Market Report 2019

Oakland County Michigan Housing Market Report 2019

Now that the thaw begins in Oakland County Michigan and Spring forward is just around the corner it is important to know what the Oakland County Housing market is doing and how this can affect home sellers and home buyers in all areas of Oakland County, Michigan. The Oakland County Housing market is always in a state of change not only in Oakland County but also around the country with home prices edging upward once again, but some of the west part of the country is seeing red, in this post we will focus on our Oakland County Michigan housing market.

 

oakland county housing market stats

On Market Oakland County Housing

There are currently over 1,700 homes currently on the market in Oakland County Michigan ( according to the graph) with the average price rounding out to be approx. 466,000 which is a price increase of around .09% overall, which is a great sign for home sellers in the Oakland County Housing market this spring, but remember these numbers are always moving  and days on the market had increased from around 30 up to 60 and are now beginning to head downward again. As of late last year, many felt we were leaning towards more of a buyers’ market but it seems we are seeing prices in the Oakland County Housing market starting to climb again these first couple of months. In most cases 2019 will be a better year for home buyers as inventory is increasing and rates are on hold for the meantime.

A Look Ahead in The Oakland County Housing Market

In the spring Oakland County Housing market, I see the market balancing, meaning that home sellers and home buyers will keep the market in the middle with the buyer pool being about the same but with more inventory to actually find the home they like and purchase and home sellers remaining in good shape as far as their equity is concerned. Last year in 2018 the housing market was hot in the beginning due to low rates and sellers gaining equity, but it was not enough to keep it going through late fall and December was a challenging month for our Oakland County Michigan Housing market. Many factors were in play such as; Low Inventory, Slow building and home buyers waiting for new homes to come on the market. I believe that we will see an increase in inventory and this includes new construction more choices and low rates. Unless there is a recession, hike in rates or some other factor to prevent pent up buyers from making the move this year, I believe our local Oakland County Housing market will thrive.

I have included in this post below my weekly housing market reports for you to sign up to in order for you to make the best home buying or home selling decision for yourself, and if I can help in anyway with any of your real estate needs here in Oakland County Michigan I would be delighted.

Click On Chart Graph Below and Add Any Zip Code

Wallpaper Painted Over?- Removing It Carefully Counts

Wallpaper Painted Over?- Removing It Carefully Counts

Finally found the house of your dreams? But wait… you rejected the offer just because the walls in the house were full of wallpaper covering and the homeowner had painted over it. Frustrating isn’t it? It’s like the homeowner wanted you to suffer after you bought the house.

Sellers usually do this when they are not willing to spend more time and money on staging your Oakland County home. However, you still think to yourself, “Why would someone do this?”

  • They found it a quick fix (saves a lot on staging, so they probably wanted to save time on peeling off the wallpaper)
  • Painting was much easier than dealing with the glue residue
  • Some crazy YouTube video assured them that this was a great idea
  • They were afraid that there might be cracks under the wallpaper, which would mean caulking the holes to prevent any foundation damage
  • They had no idea that painting over wallpaper would cause a huge problem for the next homeowner

Better stop scratching your head to figure out why the seller would do this to you! They just didn’t have the right information before making this move.

How Does Paint Affect the Wallpaper?

Since you don’t know what type of wallpaper and paint the seller used, there’s no saying how your DIY repair tricks will work on this particular type of project. A number of things can happen, such as:

  • The paint slowly starts to crumble
  • Patterns on the wallpaper are lightly reflected through the paint
  • Bubbles start to form on the wall and the edges curl away from the corner
  • The wallpaper loses its glue and starts to fall off
  • With time, the wallpaper became stiffer and thicker, making it more difficult for you to remove it

How to Remove the Wallpaper

So, the process of removing the wallpaper covering is pretty easy. All you need is a scoring tool and a steam machine. Use the tool to punch holes in the wall that are just on the surface. Use the steam machine to blow in the warm air. This softens the glue and allows you to peel off the wallpaper easily with a scraping tool. It will take a couple of hours to remove the entire wallpaper. It depends on how it was applied— in strips or as one piece. Removing strips are way easier than the one piece as you can do this task on your own. The latter requires help— the wallpaper can be gripped from both ends and removed simultaneously.

You can rent a steam machine from any store and take on this challenge yourself. If the walls are made of plaster, you might only get a few scratches on it. However, if its drywall, be prepared with caulking material to patch up the cracks and holes. The latter wall material will create a lot of mess.

So, there you go… an easy peasy way to remove wallpaper covering when it has been painted on. If you want to buy a Oakland County, Michigan home, that falls under your budget and has all the features you need, then visit Homes2MoveYou. Get in touch with a me Tom Gilliam and start seeing houses in areas that you like.

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Mortgage Rates Increasing-Get Off The Fence!

Mortgage Rates Increasing-Get Off The Fence!

Mortgage Rates Increasing Can Effect What You Can Afford

When you’re buying a home in Oakland County, Michigan, you might think the price you offer is ultimately the price you’ll pay, but if you’re buying a home with a mortgage, that’s not the case. With a mortgage, in addition to paying your principal (the amount of money the bank loans you to purchase your home), you’ll also pay the interest rate on that principal—which is why the mortgage rates increasing on a mortgage loan is so important to you as a home buyer or potential home buyers.

Interest rates on mortgages have been low in recent years, but we have seen them steadily climbing in recent months effecting not only home buyers, but home sellers as well. And even a increase in an interest rate can cost you big over the course of your mortgage. According to a recent article from Realtor.com, thanks to forecasted hikes to the Federal Reserve Key Interest Rate (which directly impacts interest rates on mortgages), mortgage rates increasing upward are expected to continue increasing for the foreseeable future.

As the article demonstrates, even a small increase in your mortgage interest rate can spell major changes in your monthly payment. For example, if interest rates for a 30-year, fixed-rate mortgage increase by one percentage point from the current rate of 4.65%, you’ll pay a whopping $53,000 more over the course of your loan than you would pay if you purchased today.

The Takeaway

If you’ve been thinking about purchasing a home, do yourself a favor and make a move now before interest rates go any higher—and save yourself a ton of cash in the process. Let me know your situation and lets find you a home before you spend more than you wish. Give me a call-248-790-5594. Tom Gilliam

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