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.
Most homebuyers in Oakland County Michigan and across the country are not usually open to make a quick home buying decision and view it as a recipe for disaster or a bad decision. In fact Oakland County homebuyers love to look at the many options, different layouts and areas in which to purchase a new home. To make a quick home buying decision many buyers feel pushed into a corner or feel their Realtor is pressuring them to make rash decisions, but in Oakland County Michigan this is not the case at all. Home buyers know that homes are moving faster than ever off the market, to make quick home buying decision is the smart thing to do in Oakland County Michigan.
Quick Home Buying Decision Facts
The fact is, according to a recent analysis the average home took 81 days to sell last year, and is predicted to be even shorter in 2018. Looking at the number of 81 days may not seem quick, but this includes closing which can usually take four to six additional weeks. As we see in our Oakland County Michigan market there are more buyers than available homes on the market causing home buyers to make a quick home buying decision. A recent report from Zillow finds that the average home buyers spends four months searching for a home and makes two offers before being a successful home buyer. What can a home buyer do? First of all expect a process and be prepared to be going against other offers and sometimes multiple offers. Get pre-qualified, know what you want and avoid deal-breakers and know what they are.
The more prepared you are the more likely you will make the best decision, even if it’s a quick home buying decision that you face. The face of the real estate market is always in fluctuation and swings back and forth, but with the still historic mortgage rates and prices’ of home gaining ground at record speed, it is still the best time to become a homeowner. Patience, knowledge, preparedness and a great realtor to guide you through the process can make your home buying experience a pleasant and enlightening one. READ MORE
Please feel free to give me a call as it would be a pleasure to help you through the process of becoming a home owner. Tom Gilliam 248-790-5594
From all accounts, this spring’s 2018 housing market is going to be a busy one. High buyer demand has carried over from last year and so have inventory concerns in many markets. In other words, anyone hoping to find and buy a house this spring should be prepared for buyer competition from other interested buyers. What does that mean? Well, in short, it means moving quickly and saving up some extra money to sweeten the pot, if necessary. In fact, according to a recent survey, home buyers say they are checking online listings every day and 40 percent say they’re planning to put more than 20 percent down, which is a great example of in today’s market . Other strategies buyers say they’re employing this spring to beat the buyer competition include setting price alerts and offering above asking price.
Overall, home buyers are aware of current conditions and are preparing themselves for the possibility of having to win over a home seller with an offer that exceeds all others. As evidence of this, as buyer competition heats up, just six percent of survey respondents said they are doing nothing to prepare for competition from other buyers. More here.
Do you want to increase the chances that you get a good deal on a house when you buy one without buyer compitition!?
Of course you do. Who doesn’t?
But most people go about it all wrong. They think that you have to find a desperate seller, or some overlooked, underpriced home that’s a steal.
Sure, those are ways to get a good deal, but there are always buyers waiting in the wings wanting to scoop those up if and when they appear. But most aren’t ready and able to do anything about it.
Here are 6 tips to help you be able and ready to get those deals when you find one and beat the other buyer competition .
1. Be flexible with your closing date.
This sounds so easy and simple. And it is. Many buyers simply cannot be flexible with their closing date. They need to time the closing on the sale of their home, or the end of their lease, for instance.
People selling their home are no different. This is a super common issue. And finding a buyer who can be entirely flexible is a huge benefit to a homeowner. Such a huge benefit that it can help you negotiate a better price and terms than someone who can’t be flexible.
2. Have cash.
You’ve probably heard the term “cash is king”. And it’s true, to a degree. A homeowner isn’t necessarily going to give you a steal just because you have cash…but they might if they’re in a rush, or they’ve been burned by your previous buyer competition who was turned down for a mortgage.
The weight of cash will vary from seller to seller. And, obviously, having enough cash to buy a home outright isn’t something a lot of people have. But, if you have the cash, it can certainly help.
3. Be pre-approved for a mortgage.
This is also pretty much a basic in the world of real estate. Talk to any real estate agent and they’ll tell you this is a must-have.
However, you’d be surprised at how many buyers don’t have a solid pre-approval in hand when they find a great deal. So, have that figured out and ready, so that when a good deal shows up, you’re ready to roll.
4. Be ready to jump before your other buyer competition.
Oddly, a lot of buyers looking for a good deal feel like it makes sense to wait a bit once they find a good deal. Let the owner stew a little bit, and come begging for an offer.
That can work…
It can also cost you a great deal. All it takes is someone else coming across the deal and scooping it up before you even make an offer. In the least, it can create a bidding war between you and someone else…and then it might not be such a deal anymore.
Another thing many deal-seekers do is wait to see if a better deal comes around. Deals don’t necessarily come around every day…or week…or month. Maybe not even that many in a year.
So, don’t wait. Go after a deal when you see it.
5. Go after houses that have been on the market for a long time.
So many buyers ignore houses that have been sitting on the market for a long time. They often think something must be wrong with the house, or feel like the owner isn’t going to listen to lower offers…so why waste their time.
But, those are great opportunities.
Those sellers are most likely desperate for anyone to simply come see the house, let alone make an offer. Sure, they aren’t necessarily going to love you coming in with a low offer. But, since most buyers are ignoring the house, and it’s been on for quite some time, the chances of you having any competition are slim. So, you can take more time negotiating the best deal possible.
6. Don’t have multiple real estate agents looking for you.
So many buyers who are specifically looking for a great deal feel like it makes sense to have as many agents looking out for deals for them as possible.
This backfires. All it leads to is a bunch of agents who’re halfheartedly looking for you. Agents will figure out if you have other agents looking for you as well, and will likely not pay you the attention you need if you’re going to get the best deal.
Be loyal to one, rather than having a bunch of half-looking, half-caring agents. Be all in.
Your loyalty and commitment to the agent and the process of finding and buying a great deal will pay off.
The best way to find and get yourself a great real estate deal is to be ready to beat your other buyer comptition. So many people just go around saying, “Got any hot deals?” to every real estate agent they come across.
However, they aren’t actually able and ready when and if the time comes. Or they think that it’s about driving a hard bargain when negotiating, or playing some sort of game with the seller.
Nope. The best way to get a deal is to be a solid, ready, and able buyer, who can give sellers something beyond a higher price.
It is clear in Oakland County, Michigan inventory is scarce and the need for new homes could be the cure. We have seen the inventory of homes for sale in Oakland County, Michigan drop 28.7 percent from 5,575 on the market to 3,976 in the last few months. The numbers show that inventories are fading, but prices are increasing with many areas are now above their pre “Great Recession” (2007) prices, but the issue still is inventory for many home buyers and with home sellers wondering if they will find something to purchase.
New Homes Underway
On the brighter side, there is a 8 percent of an increase in new home building permits, which means more new homes will be constructed and a great example is the new homes being constructed in the Rathmor Park subdivision, 51500 Ten Mile Road, Lyon Township, Mich. with the going price in the 500k area which is a bit out of the average home buyers budgets. In The Walled Lake area we seeing more affordable new homes being built in the Glengary Hills area that range from 349k to 450k which is more affordable to many new home buyers. These new construction projects are going to help in the long run but will take time to ease the tight market we are experiencing in Oakland County, Michigan as other projects for building new homes get underway.
Home Builders Will Take Advantage
Generally speaking, there are fewer homes available to buy right now than is considered normal. And though conditions will differ from one market to the next, when inventory is an issue, it leads to competition and higher prices. That’s because, there are too many buyers vying for the number of homes currently available. But when there are more buyers than there are homes for sale, conditions are also ripe for builders. And typically, they’ll take notice and build more homes to accommodate those buyers.
Based on recent readings of the National Association of Home Builders’ Housing Market Index – which measures builders’ confidence in the market for new homes – that may be where the market is right now. For example, builders confidence has been at or above 70 for four consecutive months, on a scale where any number above 50 indicates more builders see conditions as good than poor. And most of their optimism is based on market conditions and their expectations for future sales, rather than current traffic. Which means, builders see an opportunity in this year’s market and may begin ramping up construction of new homes. If that happens, it’ll provide more choices for buyers and help slow spiking price increases. More here.
[x_button shape=”square” size=”mini” float=”none” href=”https://innercircle.lightersideofrealestate.com/articles/resourceful/homebuying/need-real-estate-agent-buying-new-construction” info=”none” info_place=”top” info_trigger=”hover”]Find Out Why You Need A Realtor When Buying New Construction [/x_button]
In this early spring market across the county especially here in Oakland County Michigan inventory seems to be a major issue in home sales and in the housing market in general. It seems that with the new tax law will add more income to home buyers and sellers, but as of yet shown in the housing market. It seems there is still uncertainty with home buyers and home sellers along with rising interest rates that is plaguing or areas and others. As a Realtor for the last 17 years I really haven’t experienced anything quite like what is going on in this particular spring market, but can only hope that the uncertainty will dissipate and the markets will rebound for bth home buyers and home sellers across the country.
Income Up Home Buying and Selling Concerns Same
A rising number of Americans surveyed for Fannie Mae’s monthly Home Purchase Sentiment Index say their income is higher than it was last year at this time. But has more money made them more likely to buy or sell a house? Well, according to February’s survey results, it’s hard to say. That’s because, after an increase in January, housing sentiment fell in February – with respondents expressing less confidence in a number of categories.
In fact, the number of participants who said it’s a good time to buy a house was down, as was the percentage of participants who said it was a good time to sell. But if January saw increases in housing confidence, why the drop in February? Doug Duncan, Fannie Mae’s senior vice president and chief economist, says some of the uncertainty has to do with changing economic headlines. “Volatility in consumer housing sentiment continued in February, with the new tax law beginning to impact respondents’ take-home pay and the stock market creating negative headlines due to early-month turbulence,” Duncan said. In short, people have more income and money but they’re still a bit unsure of what lies ahead for the market. More here.