It seems everyone is talking about the housing market today and has been forever. I constantly hear the question, "How's the market". While it is no longer the frenzied multiple offers in the first day or two that it was for the last two years roughly, it has some intriguing benefits as always.
People are debating what to do with the increased interest rates. Remember, rents have been on the rise as well, and there is no option to have your own home that you don't either pay a mortgage on or rent (aside from paying off a mortgage already or staying with family, which is not having your own home). So I want people to think about what plan fits. One way to think about it is like this, according to NAR and KCM since 1991, home values in Michigan have increased by 230% overall. That is quite a large increase in value. Over the course of a 30 year mortgage peoples home values have gone up by 230% on average in Michigan. That is a lot. Often times in conversations with investors or from highly successful investors, you will always hear that "the best time to buy was yesterday". Another quote is, "It is not about timing the market, it is about time in the market". That implies that the longer you own a home the better, it is not about trying to hold out and buy at the best possible time as you will lose a lot of natural equity, or in investors cases, rents, or you will continue to pay rent on someone else's property.
Since Covid, it has been a sellers market where buyers had to compete and there were not enough homes to buy. This year we started seeing interest rates increase and that has pushed some buyers into lower purchasing power, or out of the market for buying at this time as they want to wait and see what happens. Buyers, I have a great option for you that most people are not talking about. Call me and let's talk about how you can still have a shot at a great low rate. Sellers, if you are considering selling but don't think anyone is buying or would compete for your home, call me. I have a great way of potentially having people competing for your home. With the reduced buyers in the market, you are seeing more time on the market per home, and some sellers sitting on the sideline instead of selling as they don't want to change homes and go up in interest rate. Overall, more homes are hitting the market and staying on the market for longer giving buyers an opportunity to actually shop around a little. It seems a lot of times my clients and I do offer, another offer comes along at the same time, even though the property has sat for awhile, so some competition is still out there.
Give us a call or text, we are always open to talking Real Estate and have some great options available whatever you are planning to do.
Written by Korey Rowlson, Associate Broker