...Just like Michigan weather!
Every single economic indicator that we use to get a temperature on the Real Estate Market is telling us that we are headed for worse times for Sellers and better times for Buyers. If things keep trending the way they are, sellers will be looking at lower sales prices and Buyer will be looking at better deals.
Economic Indicator #1 - Listing inventory levels are up 35% since January (more supply = less demand)
Economic Indicator #2 - Interest rates are up 25% in the past two years (from 3.75 to 4.75 today)
Economic Indicator #3 - Sales are down 4-8% depending on what County you are in. We haven’t seen a minus sign in front of this category since 2009
Economic Indicator #4 - Price reductions are up drastically. Over 1/3 of properties listed in the last 90 days have already received a price reduction...something we haven’t talked about since 2011
Economic Indicator #5 - Prices are starting to decline. They have been slowing all year and we are projecting some obvious decreases in home values given the above economic indicators. What we don’t know, based on the above indicators, is how much prices will fall.
What we do know is that, unless there is a drastic change, there is absolutely no value for sellers to wait until spring. Now, you could argue that there is a value for buyers to wait until then (lower prices), however, if interest rates go up again, they probably will not off set the decline (assuming it’s not a drastic decline).
Don't let your home's value drop below zero!
You can sign up here to receive your own market report, delivered as often as you like! It contains current information on pending, active and just sold properties so you can see actual homes in your neighborhood. You can review your area on a larger scale, as well, by refining your search to include properties across the city or county. As you notice price and size trends, please contact us for clarification or to have any questions answered.
We can definitely fill you in on details that are not listed on the report and help you determine the best home for you. If you are wondering if now is the time to sell, please try out our INSTANT home value tool. You’ll get an estimate on the value of your property in today’s market. Either way, we hope to hear from you soon as you get to know our neighborhoods and local real estate market better.