The Michigan Real Estate Market Shift

Posted by Jeff Glover on Monday, February 11th, 2019 at 5:31pm.

I hope your 2019 is off to the start that you had hoped for! I can tell you the Real Estate market certainly is off to a strong start. You may have seen some reports that the market is slowing or, "shifting" as we have been calling it, and there is some serious truth to that, however, I can share with you that a market shift doesn't have to mean a drastic change in home values. Although we do expect inventory to rise this year and home prices to start some sort of decline, we anticipate that 2019 will be a very active one. Let's first cover some of the economic indicators that are taking place that are affecting the current market:

 

1. Interest rates are volatile and saw an increase and decrease of 20-25% in the last 12 months, something that significantly affects buyer activity.

2. Inventory levels are on the rise. We are starting to see a higher available inventory of homes for sale than we saw at this same time last year. 

3. Sales are starting to decline. We have seen several months in the last year where the sales were down, compared to the year prior. Something we haven't seen since 2011.

4. Price reductions are increasing. Something we haven't seen since the last market shift is a significant number of price reductions are taking place as a method to make listings appear more attractive, and ultimately sell, at a lower price. 

5. Days on Market are starting to increase. The story for the last 5-6 years has been "homes are selling in record time" and that is changing. We are starting to see homes stay on the market longer than just a weekend. 

Now for some good news...given the above economic indicators buyers will begin to have more choices and are much more likely to get an offer accepted on their dream home because the competition isn't as fierce as we've seen the last several years. Regaardless of whether you are a buyer or seller, everything is relative and if we start to see values decline then that will obviously make for more attractive pricing when buyers buy. Not going to be buying anytime soon but have a home to sell? I probably wouldn't wait another year to do so as every economic indicator related to the Real Estate market is showing us that we are past our "peak".

Interested in learning how all of this affects your next move? Reach out to me today for your custom consultation with me or one of our agents. 

I look forward to hearing from you soon,

Jeff

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