Latest Update On The Current Housing Market – May 21, 2020

Latest Update On The Current Housing Market – May 21, 2020

Latest Update On The Current Housing Market – May 21, 2020Since the onset of COVID-19, forecasts on the housing market run the gamut from optimistic to pessimistic as things continue to change from week-to-week.  

In the early stages of the outbreak in February of this year, the market was cruising along at a steady pace with sellers continuing to gain leverage, and buyers benefiting from lower mortgage rates. The month of February showed some early signs of coronavirus outbreak, especially in those markets that were hit early and hard. 

 

Days on The Market – 15 Days Longer

Now, with states just beginning to open up, days on market is a half a month longer than this time last year, according to REALTOR.com’s current weekly housing trends report. This is the biggest increase in time on the market since 2013.

“Days on the market” is the number of days that a property has been listed on the local multiple listing services (MLS) until a seller has accepted an offer and signed a contract. It can also be referred to as “time on market” or “market time.”

New listings were also down 28% with declines continuing nationwide. This trend is visible in local data as well as the national figures, with 69 of the largest 100 metros showing similar double-digit percent increases in time on market from one year ago.

“Mid-May is normally the time of year when homes sell the fastest,” as it’s in the thick of the busy spring home-buying season, says realtor.com Chief Economist Danielle Hale. 

Median listing prices are still growing at a slower pace than before the COVID-19 situation, but according to REALTOR.com, it’s expected that time on market figures will improve in late summer, especially as buyers try to make up for the missed spring season.

 

Home Prices Still Remain Strong

Although home sales have declined due to social distancing & economic unpredictability, home prices are still strong across the nation.

According to the National Association of Realtors® the median existing-home price for all housing types in March was $280,600 – up 8.0% from March 2019 ($259,700), as prices increased in every region.

The median home price gains mark 97 straight months of year-over-year gains (nationally). In March, the unsold inventory was equal to a 3.4-month supply at the current sales pace, up from three months in February and down from the 3.8-month figure (from a year ago).

According to Realtor.com, in April 2020, the median national listing price grew by only 0.6 percent year-over-year, to $320,000. 

Of the largest 50 metros, now only 30 still saw year-over-year gains in median listing prices, down from 45 last month. Forty-seven of the 50 largest metros saw their year-over-year listing price growth decrease compared to last month.

 

Market Data Summary 

Week ending

May 16

Week ending May 9 Week ending May 2 First Two Weeks March
Time on Market 15 days slower YOY 13 days slower YOY 11 days slower YOY 4 days faster

YOY

New Listings  -28% YOY -29% YOY -39% YOY +5% YOY
Total Listings  -20% YOY -19% YOY -19% YOY -16% YOY
Median Listing Prices 1.5% YOY 1.4% YOY 1.6% YOY 4% YOY

 

Partner with Top-rated Farmington Hills and Oakland County MI REALTOR® -Tom Gilliam

 2020 Best of Farmington Hills REALTOR - Tom GilliamA top-rated Farmington Hill and Oakland County MI real estate agent like Tom Gilliam can show you more properties and save you thousands when you buy a home. You need an agent who knows the area, processes a vast network of local connections, and has the skills to negotiate like a pro.

From first-time homebuyers to multi-million dollar investors, Tom continually strives to provide top quality service for his clients. With access to the most up-to-date MLS listings for Oakland county MI properties, Tom is able to match your lifestyle needs with the perfect home.

If you are ready to list your current property, Tom has the experience and skills necessary to handle the sale and marketing of your home for the best possible results. Tom employs the latest technology to deliver massive exposure for your home to drive responses from buyers.

Tom also partners with the most talented home stagers to ensure that your home is thoughtfully staged to showcase its features and amenities in the best possible light.

With over 25 years of local real estate experience, Tom will always protect your interests, advocate for you, and go above and beyond your expectations to ensure a smooth and successful transaction.

If you or someone you know is interested in buying or selling Farmington Hills or Oakland County real estate, please give Tom Gilliam a call today at 248-790-5594 or you can get in touch here.

Tom Gilliam, REALTOR®
RE/MAX Classic
29630 Orchard Lake Rd.
Farmington Hills 48334
Call: 248-790-5594
Office: 248-737-6800
Email: Tom @ Homes2MoveYou.com
License #314578

Why Home Prices are Still Rising Despite the Global Pandemic | Realtor Tom Gilliam

Why Home Prices are Still Rising Despite the Global Pandemic | Realtor Tom Gilliam

To say the economic news coming out lately has been disconcerting would be an understatement. Statistics concerning job losses, furloughs, and unemployment figures have pointed to upheaval in the global economy as a result of social distancing measures, which were put in place by governments to contain the global COVID-19 pandemic.

But according to recent data from Realtor.com, there is one statistic that should give homeowners (especially potential sellers) some comfort—home prices still appear to be on the rise. In the week ending April 25, the median home list price ticked up by 1.6% annually, compared to one year ago. The data comes from the 99 largest metropolitan areas.

To be sure, price growth was higher a few months ago, when prices were rising by over 4% prior to the lockdown. But this is still a positive sign given the turmoil in other segments of the economy, and could provide reassurance about the stability of the housing market for those considering buying or selling their property.

So why do housing prices appear to be holding steady despite uncertainty in the broader economy?

First, it could be that prices are “sticky”, according to Realtor.com Chief Economist, Danielle Hale:

“The slight increase this week is because prices are sticky. Home sellers are strongly resistant to lowering prices, and they’d gotten really close to declining, so we see a bounce-back. I don’t think this is a return to big price increases.”

The second reason might have to do with the reduction in inventory. The number of homes for sale has been on the decline for years, leading to a much publicized housing shortage in many parts of the country. Low inventory and high demand tends to drive prices up as more buyers compete for fewer houses.

And, after the pandemic hit, available inventory has plummeted. Some estimates put the decline of annual inventory at upwards of 17% compared to last year. Meanwhile, according to the Realtor.com data, the number of new listings has plummeted by a whopping 43.1%.

People are pulling their homes off the market, or waiting to list them because they’re worried about their own economic prospects, concerned with moving during such an uncertain time, or believe that the health risk of having strangers visiting their property isn’t worth it. In any event, listings have slowed, which has helped keep prices of homes that are on the market fairly high.

So, despite the constant deluge of health and economic news, home prices appear to be holding steady. This is good news for anyone who is considering selling, or wants confidence that they’ll be buying a home that has value. It might also give buyers and sellers an edge in a market where many others are choosing a “wait and see approach.”

As always, if you’re thinking about buying or selling a property, or have any real estate questions at all, don’t hesitate to reach out. Even during these difficult times, there are still great opportunities for sellers and buyers.

If you or someone you know is interested in buying or selling Oakland County MI real estate, please give Tom a call today at 248-790-5594 or you can get in touch here.

Tom Gilliam, REALTOR®
RE/MAX Classic
29630 Orchard Lake Rd.
Farmington Hills 48334
Call: 248-790-5594
Office: 248-737-6800
Email: Tom @ Homes2MoveYou.com
License #314578

Home Prices Still A Concern For Home Buyers And Sellers

Home Prices Still A Concern For Home Buyers And Sellers

Home prices in Oakland County are the top concern for both home buyers and sellers. After all, a lot of the calculus that goes into determining whether or not it’s a good time to sell or buy a house is based on where home values are and where they are expected to be in the future. For that reason, it’s good to follow the S&P Case-Shiller Home Price Indices, as they are considered the leading measure of U.S. home prices.

According to the latest data, prices have continued to rise at around the same pace they’ve been increasing, with both month-over-month and year-over-year data showing little change. In short, prices are going up but no faster than they have been. David M. Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices, says things aren’t expected to change any time soon. “Unless inventories increase faster than sales, or the economy slows significantly, home prices are likely to continue rising,” Blitzer says. But despite rising prices, Blitzer notes that the market is calmer today than it was during the last price boom in the early 2000s. More here.

Home Prices Another Look

According to CoreLogic’s  another great resource for home prices predicts in their Home Price Insights report, home prices are expected to increase by 4.3% in 2018. While that’s less than the 2016-2017’s year-over-year change, which came in at 6.3%, it’s still a significant increase. If you purchased a home for $400,000 today, that same home is projected to cost you an additional $17,200 by the end of the year.

Homes have steadily been getting more expensive, and they’re just going to continue to get more expensive in the upcoming year. Buying at the start of 2018 can save you thousands (even tens of thousands) of dollars vs. waiting until the end of the year to make a purchase.

Home Equity Continues To Increase In Oakland County

Home Equity Continues To Increase In Oakland County

When you buy a house in Oakland County, you’re not just purchasing a place to live,you’re also making an investment in the real estate market. Which means, as your home’s value grows, so does your equity. Equity, of course, refers to the amount a property is worth minus the amount still owed on the mortgage. Put simply, if your equity is growing, that’s good news for Oakland County homeowners. Which is why new numbers from the Board of Governors of the Federal Reserve System are encouraging. That’s because they show homeowner equity on the rise. In fact, the total value of homeowner equity has increased $1.2 trillion over the past year and reached $14.4 trillion in the fourth quarter of last year.

In short, that means homeowners are seeing the value of their Oakland County homes, and their investment, grow. Whether you’re a current homeowner or are about to become one, this is a positive sign – as it indicates that the real estate market is strengthening and offering Americans a good opportunity to find a place they can, not only call home, but also a good financial decision. Read More Here

Prices and Equity Increase Across Oakland County

Thanks to historically low inventory and an extremely competitive market, home prices across Oakland County have been steadily rising in recent years. And according to expert predictions, it doesn’t look like that trend is going to change in 2018.
According to CoreLogic’s recent Home Price Insights report, home prices are expected to increase by 4.3% in 2018. While that’s less than the 2016-2017’s year-over-year change, which came in at 6.3%, it’s still a significant increase. If you purchased a home for $200,000 today, that same home is projected to cost you an additional $8,600 by the end of the year.

Homes have steadily been getting more expensive, and they’re just going to continue to get more expensive in the upcoming year. Buying at the start of 2018 can save you thousands (even tens of thousands) of dollars vs. waiting until the end of the year to make a purchase.

Listing: Open House Modal

Are You Selling at The Right Price

Are You Selling at The Right Price

Are You Selling at The Right Price, this is a question that we are faced with at every listing appointment we go on. There are many factors that play a role in setting the right price and frankly many of them are not understood by the home Are You Selling at The Right Priceseller. Some home sellers feel that if their neighbor sold for a certain price, then they can go above that price because of course their home has this or that update etc… This is normal as home sellers feel and rightly so sometimes that they have more to offer in their home. I always listen to the home seller and try to be open minded to their way of thinking, but I also arm myself with comps and numbers that state my case as well then we can sit down and decide as a team what the best course of action will be. It is always good to explain to the home sellers the issues that can arise during the appraisal process and the possibility of having the home on the market too long which can make buyers concerned that either the seller is hard to work with or that there is something wrong with the home. Below are some ideas that can help sellers understand the pricing aspect and hopefully help them get their home sold more quickly.

As a home seller, you want to get the highest price you can for your home. Remember, though, home buyers want to pay the least they can get away with. To attract their interest, you need to list your home at the right price — its fair market value. How can you know what the right price is? Ultimately, it’s what someone else is willing and able to pay for it. Working with a professional real estate agent is the most reliable way to discover the true value of your home.

Multiple Factors Determine Value

A real estate professional has a variety of resources to draw from in deciding on a price that will get your home sold at top dollar. Here’s what we would do to calculate your home’s worth.

    Evaluate your home — its location, rooms and lot size.

Look at the condition and appearance of your home’s interior and exterior. We can suggest inexpensive repairs or updates to help you get top dollar for your home.

Compare your home with similar properties in the area that are currently for sale or have recently sold.

Review your home’s assessed value, its previous sales prices, average maintenance and utility costs, and local taxes.

Consider current market conditions, interest rates and lending criteria.

Factor-in local real estate trends, economic conditions and any local data that could make homes more valuable, such as job growth in the area.

Some of the items that should not be considered in a comparative price analysis include the original cost of the home, money spent for improvements, or how much cash you would like to net from the sale. While these factors are important to you, they have no bearing on the fair market value a buyer will be willing to pay.

Overpricing Can Lead To Underpricing

>t’s not only important to find out what homes have been selling for, it’s also important to learn at what prices homes go unsold. Overpricing is the single, most detrimental mistake you can make when listing a home for sale.

We’ve seen it time and again: Sellers sometimes list their homes at prices above the market, hoping some out-of-town buyer will make an uneducated decision. Other sellers want to overprice to give themselves lots of room for negotiating with buyers. In fact, these strategies seldom work to the seller’s advantage — their homes languish on the market while buyers compete for other comparable homes listed at reasonable prices. Overpricing sellers eventually have to drop their price, often below market, to regain the attention of buyers who’ve already written these homes off their list

Stay Ahead Of The Trends

A sound pricing strategy gets ahead of the trends. If you live in an area where home prices are dropping, it’s a good idea to price a little below the price of the last comparable home sold in your area. On the other hand, if prices are on the rise, you can set your price just above the price of the last similar home sold and expect to get what you ask for.

Keep Your Values Straight

When deciding on a sales price for your home, don’t make the mistake of relying on its “assessed value” as a guide. The assessed value of a property is your local taxing authority’s valuation of a home’s worth — it’s seldom accurate. In fact, assessed values are often lower, sometimes much lower, than current market values, especially in areas where home prices have been rising rapidly.

A Note Of Caution

Most real estate agents will run a comparative market analysis on your home before you list with them. They’ll present their recommended price as part of an overall marketing plan in their sales presentation to you.

Don’t make the mistake of selecting a real estate agent only because he or she came in with the highest market valuation of your home. Some unscrupulous agents will “high ball” the sales price simply to get your listing, knowing you’ll eventually have to drop your price to secure a contract.

This doesn’t mean you should automatically reject the agent who recommends the highest price. It simply means you should look closely at the how price was developed and at the overall marketing plan for getting your home sold at that price

home evaluation

 

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