Are you considering buying or selling a home?

Have you been frustrated with the lack of housing inventory available?

If you are considering buying or selling a home, this article is for you. There hasn’t been a better time to buy or sell in Michigan in years. Mortgage rates are low, housing inventory is up, and spring is here.

According to an article by the Detroit Free Press, many suburban Detroit home sale prices are still about 20% below their peak of a decade ago. However, prices have been slowly rising since 2012. Many neighborhoods are seeing yearly gain of 10% or more.

Here is what we know: quality inventory is selling fast.

The Detroit Free Press reported the following counties and their recent gains:

  • Oakland County: The number of home sales jumped nearly 17% in the first quarter compared with 2014 as the median sale price rose 5% to $172,750, according to Advertising That Works figures.
  • Macomb County: Sales rose 6.4% for the quarter as prices gained 6.5% to $114,000 from a year ago.
  • Wayne County: Sales for just the month of March were 4.4% higher, and the median sales price climbed 13% to $72,000, the only data available from Advertising that Works.

In an article that I published back in February, I highlighted three main reasons why chief economists advice buying your next home now. Those compelling reasons include:

  1. Mortgage Rates Will Rise

    Surprisingly, mortgage rates are still below 4%. That will not always be the case. Many chief economists have predicted that rates will rise. These rock bottom mortgage rates are pushing more Metro Detroiters to buy.

    Want to see how much difference a percentage of interest rate can make? In my article, Low Mortgage Interest Rate Stats You Want to Know, I covered just how much difference that 1% can make.

    For example, using a $300,000 mortgage and comparing a 4.5% interest rate to a 5.5%, the following would apply:
  • With a 4.5% interest rate, you could buy 40 more Starbucks Grande Café Lattes every month as compared to a 5.5% interest rate.
  • In the first year of owning that 4.5% mortgage, you could take your family on a week-long vacation.
  1. Housing Prices Will Decelerate

    Although many homes have increased in value, the rise in housing prices is expected to slow down. As I explained earlier, however, values may not have recovered to the price points that they were a decade ago.

    According to Forbes, Zillow, and Realtor.com, most are predicting a rise in value of up to 5%.

    For many home owners, the increase they have seen has been enough to get them out from underwater with their mortgage.
  1. Job Growth and Consumer Confidence

    One of the reasons why people are buying and selling this spring, according to chief economists and the recently published article in the Detroit Free Press, is that more people have jobs. The auto industry has recovered and is hiring again.

Take Away

If you have been on the fence for buying a home or selling your current home, there has never been a better time. If you have any questions about either process, please give my office a call. I would love to have the opportunity to answer your questions.

 248-348-7200