What a start to the beginning of the home buying and home selling season in Oakland County, Michigan, all being great news for home values and home sellers currently listing their homes, most homes across the Oakland County, Michigan are up 7% and even more since March of 2017. According to the most recent Home Price Index Report from CoreLogic, home prices nationwide increased by 7% from March 2017 to March 2018. According to an April 2017 article from the National Association of Realtors, the median home price in March 2017 was $236,400. This means the average homeowner has gained nearly $17,000 in wealth from their homes over the past year. This is great news, except inventories have been very low for Oakland County home buyers in the market to purchase a new home, but now we are seeing this staring to reverse with more home inventory increasing.
Thanks to an historic low housing inventory available it has been daunting for home buyers to find the perfect home, and if they do find one that fits their needs it becomes a bidding war between the Oakland County home buyer and their competition. Until recently, the hyper-competitive market was starting to discourage potential Oakland County home buyers. In fact, in March 2018 the number of buyers requesting home tours dropped 1.4% nationally, and the number of buyers writing offers dropped nearly 2% (according to the Redfin Housing Demand Index). The numbers don’t lie, but the return of housing inventory could not be better news for Oakland County home buyers who are desperate to find the perfect home before the school year begins.
However, according to the Demand Index, in April, newly listed homes for sale were up an impressive 6.6% year-over-year. It looks like the tides are (finally) starting to turn for potential Oakland County home buyers. This increase in inventory should make it a bit easier out there for potential Oakland County home buyers. So if you’ve been thinking about purchasing a home, now is a great time to make a move.
If your a Home Buyer and Home Seller you know the real estate market is HOT!, In fact May 2018 home sales hit an all time record in Oakland County and across the country. Most homes have had multiple offers and are flying off the market like nothing we have ever seen before, especially here in places like Farmington Hills, Novi and Northville. Low inventories have made it a challenge for many home buyers and on the other hand have made it a dream come true to home sellers which are happy to have their homes even selling for over asking price. Seems the May 2018 home sales record is just a sign of things to come.
May 2018 Home Sales Were Smoking HOT
In a recent article from Realtor.com “Home-Buying Frenzy Sets a Record as California loses it’s grip on Hottest Markets” confirms that the May 2018 home sales data reveals that in fact it has gone down in history as the May 2018 homes sales was the best ever recorded. In the article it states that homes are spending 32 days less on the market then any previous six year period, it is also stated 30 of the top 50 housing markets in the country saw their homes on the market the least of amount of time since 2012 (when Realtor.com started following sales data)
In May 2018 home sales have homes flying off the market, but are selling for higher than anytime before as the median listing price was $297,000-which in an increase of 8% over last May of 2017. It is clear that we are on the recovery track for the housing market across the country which has been a strain on our economy for quite some time both locally and country wide. The May 2018 home sales report and it being a record breaker is great news for home owners and those who are looking to sell this summer, but we still face very low inventories for many home buyers.
If you are looking to sell, NOW is the time to do so. In this market you may fetch more than you thought possible for your home and sell it very quickly in the process. Like all things, this to shall pass and you wouldn’t want to miss out on this incredible home selling season. If your on the fence, lets chat about it and see what works for you, please feel free to request a customized value report below.
With home prices rising in many areas of the country, many people are worried that we’re headed for a housing crash like the one we suffered in 2008. But here’s the thing: it’s just not true. While it’s understandable that people would look at the current market, consider it a “housing bubble,” and assume it’s going to pop, the truth of the matter is the market today couldn’t be any more different than they were before the crash of 2008.
Let’s take a look at four reasons why we’re not headed for another housing crash:
1. Banks have tightened their lending practices
The biggest contributor to the crash of 2008 was risky lending practices. Financial institutions had extremely loose standards in terms of who they’d lend to; they were giving out mortgages to people with low incomes, bad credit, and who were unlikely to be able to pay their mortgage once their interest rates increased. Getting a mortgage was easy, regardless of your financial situation. While this made homeownership possible for people who previously would have needed to rent due to lack of income or bad credit, it also led to serious problems when millions of people began defaulting on their loans, leading to the housing crash and the ensuing economic crisis.
Today, those predatory and unethical lending practices have been completely overhauled. Mortgage standards are much more strict, and lenders are much more cautious in who they grant loans to and the terms of those loans. This has led to greater stability in the market and will prevent another crash like the one we experienced in 2008.
2. Fixed rate mortgages are the norm
As mentioned, a huge part of the housing crisis of 2008 was subprime mortgages. The mortgages given to the riskiest borrowers were adjustable rate mortgages. Once the introductory period was over, borrowers saw their interest rates skyrocket and their mortgage payments quickly double or triple in size, making them completely unaffordable and leading to mass defaults on loans across the country.
But today, while adjustable rate mortgages still exist, they’re significantly less common. Fixed rate mortgages are the norm. When people borrow, they know exactly how much their mortgage payment is going to be for the life of their loan. This allows them to assess their budget and only borrow as much as they can afford, making it much less likely they’ll default on their loans in the future.
3. Today’s rising prices are a supply and demand issue, not the makings of a housing crash
In 2008, prices rose rapidly because everyone wanted to buy property. Real estate experts called it a “mania” because so many people who weren’t able to buy property suddenly had the ability to do so. Purchasing a home in the US accelerated to a frenzied pace, which drove up prices.
But today, prices aren’t rising because there’s a flood of frenzied buyers in the market. Instead, it’s a supply and demand issue. People are staying in their homes longer, which means there’s less inventory available in competitive markets. When there’s less inventory, there are more people vying for the limited homes available, which drives up property prices. This kind of price increase is just a normal part of a competitive market, not a reason to worry we’re headed for another housing bubble.
4. There’s economic growth to support rising prices
Perhaps the biggest reason you don’t need to worry about the US heading for another housing crisis, is the fact there’s economic growth to support rising prices.
The reason the most competitive markets in the country (like Silicon Valley or Seattle, WA) are rapidly growing and showing historic price increases is due to economic growth. The most competitive housing markets in the US are the markets with the most opportunity. People are flocking to areas where there are jobs, stable economic growth, and opportunities for the future. Potential homebuyers want to purchase property in a place they know will offer them plenty of career and economic opportunities.
When there’s economic growth to support growing prices like there are in today’s hottest cities, it makes for a much more stable market—and a market unlikely to head towards a housing crash.
If you’re worried that rising housing prices are an indicator another housing crash is on the horizon, take a deep breath. The conditions in the market today are completely different from the conditions in 2008, and thanks to the changes made in lending practices after the crash and our booming economy, you can rest assured we won’t see a housing crash anytime soon.
Reports That Matter to Home Buyers and Home Sellers
These Reports give you up to date information on your local housing market which is valuable information for home buyers and home sellers alike. The great thing about these reports are that you can search any zip code, city, state and neighborhood to get the educated information to make a wise home buying or home selling educated decision. Feel free to share these and be sure to bookmark this page to get up to date local housing market data that is updated every 7 days.
I work hard to keep my clients informed about the market while they’re buying or selling their home. These weekly reports use real-time data so my clients can make decisions based on what’s happening in the market right now and how the market is changing week by week.
A few questions these reports can help you answer:
- Is now a good time to buy or sell? Check the “Market Action Index” to see if the market is heating up or cooling down.
- How’s the market in my price range? Click into the “Market Segments” charts to see the how the market is behaving in different price ranges.
- What can I get in my price range, and where should I look? Use the “Median List Price” charts to see what you can buy in your price range, and search by zip code to compare different neighborhoods.
Feel free to share this report with your friends and family, and please let me know if you have any questions about the market or if I can help you in any way.
This week the median list price for Farmington, MI is $329,950 with the market action index hovering around 41. This is less than last month’s market action index of 43. Inventory has held steady at or around 222.
Stay informed with the housing market in Farmington Hills and the surrounding southeast Michigan, sent to you weekly!
As many of us are looking forward to spring home selling 2015 housing market and an end to the cold winter, it’s hard to get excited about it as there still remains a few months of it left. On the other hand you can go to any large department store anywhere in Oakland County and see Easter prominently exhibited giving our internal clocks a feeling of relief from our claustrophobic reaction to the cold winter months. Although there are those that thrive in the winter season, but I’m not one of them at this point of my life. Being a Realtor in Oakland County and getting ready for the spring home selling season can be challenging but also exciting. Forecasters say that this spring 2015 and summer will have the most engaged home buyers and sellers in our Oakland County housing market then in many years past and that is very exciting to me. Spring home selling can be a tremendous task for any home owner whom is thinking about listing their home and may be putting it on the back burner at this point, but I’m here to help with your entire spring home selling needs and thought I would try and help get you motivated by sharing some starting points.
Get Motivated to Sell
Getting motivated to consider selling your home could not be harder in mid-February, but now is the time to try and get in in your mind if you plan to sell in the spring home selling market 2015. One of the best and most important benefits to preparing for the spring home selling market is to beat your competition to the market. Once your neighbors have listed you may have lost the upper hand with your price, terms and contingencies that could be optimal for you. Buyers have been hibernating as well as sellers,they are ready to buy a new home while rates are still at record lows, lender restrictions are easing and low inventories motivate them. Although home owners may not be considering getting into the spring home selling market at this time while the weather is still cold and snowy, but you can bet that their smart competition are preparing already.
Weighing the Decision to Sell
Making the decision to sell or not to sell is a balancing act of pros, cons, and functionality. Some of the pros for spring home selling are rising market values, buyers ready to buy and rates are all time lows. For the spring home selling market home values are up or peaked making it a perfect time to sell as many homes are no longer underwater and can even make a profit for the first time in years. The best way to determine your homes current value is to have a thorough market analysis completed on your property from a licensed Realtor, this will help you determine your flexibility in your homes current value. The cons of selling are few as it can only be a smart move in this forthcoming spring home selling housing market according to all signs and signals from top housing market analyst. If your family has grown and your home has become nonfunctional for for their needs, is there more room to grow? If you are empty nesters, is the home too large for your needs? These are questions to ask yourself and now couldn’t be a better time to move up or scale down.
After The Decision
Once you have decided to join the spring home selling market of 2015 whats next? Start to interview local Realtor’s at your home so that they can give you their expert opinions of the homes condition and what you may want to consider getting done before listing the home. Getting a comparative market analysis via email is a good start, but doesn’t give a clear value as it would if the Realtor can actually see the home and any upgrades that have been done. Pricing is merely a starting point. The best criteria for choosing who lists your home is not opinion on price, but a firm’s reputation for giving home sellers a solid, competitive edge. In addition, you need an experienced agent who can negotiate well, because no matter what price you set, many prospective buyers will want to bargain.
The Steps to Getting it Done
Educate yourself on the spring home selling market and get involved by visiting my website to size-up the homes-for-sale competition, read home selling articles on our site, consider reading a book on home selling, attend some seller’s Open Houses in the your area (ask me). As your local Oakland County Realtor professional I specialize in listing in the Oakland County area, I know what it takes to sell in this spring home selling market approaching and it would be a pleasure to assist you every step of the way. Lets take a hard, objective look at your home together. Prioritize what needs to be done, and decide how much you can spend in time and money to make it look its best before opening it up to buyers. Get rid of all clutter and put some of your stuff in storage to make the rooms and closets roomier. Put together an information packet on local amenities, your utility bills and other helpful information for buyers.
Together we can Avoid the Bad Six
Many home sellers in the spring home selling market make costly mistakes and don’t do their homework. Your home is the one of the most valuable investments you can make in your lifetime. When your selling your home especially in spring home selling market you’ll want to pocket the biggest net gain possible. When you sell your home you really want to know your competition and if at all be one step ahead of them and mistakes can be costly. Together we can avoid these six:
1) Over-Under Pricing
By setting the price too high, you turn away the best prospects for your home. By asking too little, you’ll probably sell faster but net less from the sale. We can do a comparative market analysis and a home visit to help you set the best price for your home.
2) Selling as Is
In a highly competitive spring home selling market you are best served to show your home at its best. Home buyers want to see your home in move-in condition from the first day it’s listed. together we can point out your home’s chief assets and highlight them.
3) Over Improvements
While cleaning and clearing out clutter is important to get your home ready for sale, undertaking a major project could cost more than what you can recover from the sale. However, some major repairs, like replacing a roof should be addressed if needed.
4) Selling it Yourself
Although selling your home yourself (FSBO) looks tempting as a way to save money, survey show that self-sellers net less from the sale then sellers who use a Realtor. And self-sellers find that agents do a lot more than most people think – from bringing qualified buyers to keeping things on track to settlement.
5) Failing to Offer Financial Incentives
Special options can attract buyers without costing too much. Often incentives like a home warranty, paying points or some closing cost can be figured in when setting the price of the home.
6) Ignoring your Agents Advice
As we are experienced Real Estate professionals, we know what works and what doesn’t. Lets discuss together any advice you are uncomfortable with or disagree with, and together we can find the best way to sell your home.