The start of 2019 was slow for the real estate market, but it looks like that’s starting to change—and just in time for the spring season, which is historically the busiest time of year for buyers and sellers across the US.
According to a recent article from REALTOR Magazine, existing home sales posted a huge jump from January to February 2019—an 11.8% increase, the largest month-over-month gain the market has seen since December 2015. The reason for the jump? According to the National Association of Realtors™’ chief economist Lawrence Yun, the dramatic increase in existing home sales from January to February can be attributed to a number of factors including increasing inventory, falling mortgage rates, and a higher level of consumer confidence.
This dramatic jump in existing home sales is good news for both buyers and sellers. So if you’ve been thinking about getting into the real estate market, it looks like the upcoming spring season is shaping up to be a great time to make a move.
Home sales seems to have been in the negative lately and its not from the lack of Realtors like myself trying to get sellers homes on the market here in Farmington Hills. As one would drive around, like myself there are less and less home sales in the area, could this be due to high prices or lack of home buyers in the market to purchase? As of writing this there are 228 homes currently for sale on the market in Farmington Hills and with a population of 80,000 plus that doesn’t leave much to choose from for potential home buyers currently on the market in Farmington hills. Home prices are still rising 17% higher then the National average at this point and incomes are not keeping pace, this can be cause for concern for any potential home buyer in our area.
Home Sales in a Blink of an Eye
In Farmington Hills the average home goes under contract within the first month of listing, this shows the frustration of buyers struggling to find a home that fits their budget, needs and wants. With the prices rising and the inventory scarce it seems as if home buyers are looking for some relief in either more homes to pick from or searching for the perfect deal and giving up some of their “must haves”. Now that fall is upon us, I expect to see more aggressive buyers in the market and hopefully more homes on the market in Farmington Hills making home sales click up a notch or two. The closer we get to the winter season either homes sellers will be more flexible in pricing to avoid having a “winter listing” or will remove their listing from the market all together and start fresh in the spring, but both are risk they must be willing to take.