Midtown: Just steps outside Heritage Hill – this Midtown 2 unit duplex offers a turn-key addition to your portfolio. $21,900 yearly gross rents. Large amounts of onsite storage with 3 stall ”garage” with 3 separate storage units. Washer and dryer onsite. Split utilities. Currently tenants pay: gas, electricity; landlord pays: trash, water/sewer. This area is sought after and continues to offer popular amenities such as high walkability, easy access to highways, walking distance to Medical Mile and several downtown sites. Take action to make this one yours today!
Top 5 Tips for Downsizing brought to you by John Rice REALTOR Berkshire Hathaway HomeServices.
Your House Could Be the #1 Item on a Homebuyer’s Wish List During the Holidays
Each year, homeowners planning to make a move are faced with a decision: sell their house during the holidays or wait. And others who have already listed their homes may think about removing their listings and waiting until the new year to go back on the market.
The truth is many buyers want to purchase a home for the holidays, and your house might be just what they’re looking for. Here are five great reasons you shouldn’t wait to sell your house.
1. While the supply of homes for sale has increased this year, there still aren’t enough homes on the market to keep up with buyer demand. As Nadia Evangelou, Senior Economist & Director of Forecasting at the National Association of Realtors (NAR), explains:
“There’s still this gap between demand and supply because we were underbuilding for many years. . . . So now we see demand is slowing, but it still outpaces supply.”
“While not the frenzy of 2021, the largest living generation, the Millennials, will continue to age into their prime home-buying years, creating a demographic tailwind for the housing market.”
3. The desire to own a home doesn’t stop during the holidays. In fact, homes decorated for the holidays appeal to many buyers. Plus, purchasers who look for homes during the holidays are ready to buy.
4. You can restrict the showings in your house to days and times that are most convenient for you. That can help you minimize disruptions, which is especially important this time of year.
“Over the next 12 months, rents are expected to grow more than inflation, the stock market and home values.”
Your home could be their ticket to leaving renting behind for good.
There are still many reasons it makes sense to list your house during the holiday season. Let’s connect to determine if selling now is your best move.
Source: Michigan Real Estate Updates
The real estate market continues to be in the headlines and with that comes mixed signals. The most important part of real estate is how your specific area is trending. Most of the news data you see will be about the national real estate trends which often take into account the east and west coasts. Those 2 markets tend to have larger swings in prices and volatility then the Midwest. When we look at Michigan, specifically the Greater Grand Rapids MI market we will see a much clearer picture of the current market and its affect on your property. Yet to REALLY see how your property is impacted we need to do an analysis for your specific property. Everything else is “trends for the area.” Real estate is most definitely hyperlocal.
So how do the numbers stack up? Dive right into the report to review the numbers for yourself.
A couple of key takeaways:
- The average time on market in October 2021 was 14 days, for October 2022 it is 17 days. Still landing in the “seller’s market” category.
- The average median sales price is up 11.54% over that of last year. This maybe due to the fact that while we do have fewer buyers in the market than last year, the number of buyers continue to outpace the number of homes on the market keeping the market in a “sellers’ market” scenario.
Take note – this market is VERY different than last year! Last year several homes would have seen multiple offers – possibly even double digit multiple offers. Now it is trending that there maybe multiple interested buyers but far fewer offers on the table. This is allowing buyers to often see an offer with due diligence included be accepted (such as inspections, appraisals, etc.) I get more into that in this recent article. As a seller this means proper strategy, marketing and experience are top factors in getting your house sold.
View the full report here: October 2022 Market Trends Report
The 2022 Consumer Insights Report from Mynd says there’s a portion of millennial and Gen Z buyers who are pursuing homeownership as a way to build their wealth, but it may not be exactly the way previous generations have done it. The study explains how they’re breaking into the market:
“. . . younger generations of Americans are not buying into that dream in the same way that older generations have. A growing number of Americans are choosing to make their first real estate purchase as an investment property.”
Instead of buying a home and moving into it themselves, some young buyers are purchasing a home so they can use it as a rental. The report above mentions how many people in this group are considering this approach. It says:
“Almost half of Millennials and Gen Z (43%) are considering buying an investment property compared to only 9% of Baby Boomers and 27% of Gen X.”
Why Younger Buyers Are Buying a Home To Use as a Rental
This strategy allows buyers to continue living in their current location, like the bustle of a city apartment or a neighborhood that they know and love, where they couldn’t afford to buy. But instead of giving up on the idea of owning a home, they buy a home in a more affordable area with the intention of renting it out.
In a way, they’re getting the best of both worlds. They live where they want, and they still own a home where they can afford it.
Their goal is to generate passive income and diversify their assets. It works like this: in addition to having a rental stream of income, the equity they build in their house will also help grow their net worth over time.
If you’re thinking about buying a home as an investment strategy to build your wealth, let’s connect to explore your options and nearby areas that may have homes that fit what you’re looking for.
Source: Michigan Real Estate Updates
3 Trends That Are Good News for Today’s Homebuyers
The market has changed a bit since last year. Here are a few trends to take note of:
1. More Homes To Choose from
During the pandemic, housing supply hit a record low at the same time buyer demand skyrocketed. This combination made it difficult to find a home because there just weren’t enough to meet buyer demand. According to Calculated Risk, the supply of homes for sale increased by 39.5% for the week ending October 28 compared to the same week last year.
Even though it’s still a sellers’ market and supply is still lower than more normal levels, you have more to choose from in your home search. That makes finding your dream home a bit less difficult.
2. Bidding Wars Have Eased
One of the top stories in real estate over the past two years was the intensity and frequency of bidding wars. But today, things are different. With more options, you’ll likely see less competition from other buyers looking for homes. According to the National Association of Realtors (NAR), the average number of offers on recently sold homes has declined. This September, the average was 2.5 offers per sale. In contrast, last September, the average was 3.7 offers per sale.
If you tried to buy a house over the past two years, you probably experienced the bidding war frenzy firsthand and may have been outbid on several homes along the way. Now you have a chance to jump back into the market and enjoy searching for a home with less competition.
3. More Negotiation Power
And when you have less competition, you also have more negotiating power as a buyer. Over the last two years, more buyers were willing to skip important steps in the homebuying process, like the appraisal or inspection, to try to win a bidding war. But the latest data from the National Association of Realtors (NAR) shows the percentage of buyers waiving those contingencies is going down.
As a buyer, this is good news. The appraisal and the inspection give you important information about the value and condition of the home you’re buying.
A survey from realtor.com confirms more sellers are accepting offers that include contingencies today. According to that report, 95% of sellers said buyers requested a home inspection, and 67% negotiated with buyers on repairs as a result of the inspection findings.
While buyers still face challenges today, they’re not necessarily the same ones you may have been up against just a year or so ago. If you were outbid or had trouble finding a home in the past, now may be the moment you’ve been waiting for. Let’s connect to start the homebuying process today.
Source: Michigan Real Estate Updates
Perspective Matters When Selling Your House Today
Does the latest news about the housing market have you questioning your plans to sell your house? If so, perspective is key. Here are some of the ways a trusted real estate professional can explain the shift that’s happening today and why it’s still a sellers’ market even during the cooldown.
Fewer Homes for Sale than Pre-Pandemic
While the supply of homes available for sale has increased this year compared to last, we’re still nowhere near what’s considered a balanced market. A recent article from Calculated Risk helps put this year’s increased inventory into context (see graph below):
It shows supply this year has surpassed 2021 levels by over 30%. But the further back you look, the more you’ll understand the big picture. Compared to 2020, we’re just barely above the level of inventory we saw then. And if you go all the way back to 2019, the last normal year in real estate, we’re roughly 40% below the housing supply we had at that time.
Why does this matter to you? When inventory is low, there is still demand for your house because there just aren’t enough homes available for sale.
Homes Are Still Selling Faster Than More Normal Years
And while homes aren’t selling as quickly as they did a few months ago, the average number of days on the market is still well below pre-pandemic norms – in large part because inventory is so low. The graph below uses data from the Realtors’ Confidence Index by the National Association of Realtors (NAR) to illustrate this trend:
As the graph shows, the pre-pandemic numbers (shown in blue) are higher than the numbers we saw during the pandemic (shown in green). That’s because the average days on the market started to decrease as homes sold at record pace during the pandemic. Most recently, due to the cooldown in the housing market, the average days on the market have started to tick back up slightly (shown in orange) but are still far below the pre-pandemic norm.
What does this mean for you? While it may not be as fast as it was a couple of months ago, homes are still selling much faster than they did in more normal, pre-pandemic years. And if you price it right, your home could still go under contract quickly.
Buyer Demand Has Moderated and Is Now in Line with More Typical Years
Buyer demand has softened this year in response to rising mortgage rates. But again, perspective is key. Getting 3-5 offers like sellers did during the pandemic isn’t the norm. The graph below uses data from NAR going back to 2018 to help tell the story of this shift over time (see graph below):
Prior to the pandemic, it was typical for homes sold to see roughly 2-2.5 offers (shown in blue). As the market heated up during the pandemic, the average number of offers skyrocketed as record-low mortgage rates drove up demand (shown in green). But most recently, the number of offers on homes sold today (shown in orange) has started to return to pre-pandemic levels as the market cools from the frenzy.
What’s the takeaway for you? Buyer demand has moderated from the pandemic peak, but it hasn’t disappeared. The buyers are still out there, and if you price your house at current market value, you’ll still be able sell your house today.
If you have questions about selling your house in today’s housing market, let’s connect. That way you have context around what’s happening now, so you’re up to date on what you can expect when you’re ready to move.
Source: Michigan Real Estate Updates
3055 Paris Park Dr SE: With Paris Park Nature Reserve located at the end of the quiet, cul-de-sac street featuring mature trees and sidewalks and with the Paul Henry (Kent) Trail System around the corner this ranch offers an incredible location! Imagine bonfires at your own firepit, grilling on the deck or patio (with natural gas hook-up), enjoy sitting in the sun on the patio or in the shade under many of the beautiful mature shade trees. Inside you will appreciate the 3 bedrooms, large full bathroom and half bath, and the very open finished basement with walkout access to the patio and the plumbing is roughed in for an additional bath! This lower space offers plenty of room for a home gym, home office, additional bedroom many options!!! Additionally, many updates having been done; roof new in 2015, furnace within the last 3 years, updated bathrooms, flooring, lighting, paint colors and more. Now it’s time to add your own decorating touches and call it your own!
As we head into fall, we can look back over the last 3 months to get a sense of the market activity for July, August and September. With that data, and the day-to-day current trends we can read the overall market activity; helpful insight for planning! The below link takes you to the last 90 days of reported data. Our additional blog post on “September 2022 vs 2021” will give you insight into this year vs last year.
As we look at the report below the general trends are:
- This is a still sellers market but not as HOT as we saw the last 2 years.
- There is more on the market now than a few months ago although still less than buyer demand. This means there are more choices for buyers, more competition for sellers and bottom line: planning and the right action plan will make the most impact in this market.
- The length of time on the market is trending UP – meaning you can expect a home to last a bit longer on the market than we saw last year, however the amount of time on the market still is well within the length of time to be considered a sellers market. As we highlighted in our earlier blog post, anything 180 days or less on the market keeps us in a sellers market. Right now the average days on market is trending 15-20 days on the market; keeping us still in the range of this being a strong market.
There is no doubt that rising interest rates are influencing buyers decisions and affordability. That coupled with more listings hitting the market is really leading to a lot of clients reaching out to better understand their current market value and the best way to navigate today’s market.
Let’s talk about your plans and how you can best move forward in today’s market! Reach out to me by clicking here: MESSAGE JOHN
You can view the full report here: 3rd Quarter 2022 QUARTERLY MARKET TRENDS REPORT
The numbers for September are now in – so how does this year compare to last year?
- The upward trend for appreciation in overall home price continues. On average the September 2022 is up 8.71% over that of 2021.
- Average days on market is up 7+ days over that of last year at an average of 18 days on the market vs 11 days on market. Still WELL within the definition of a HOT Market…. we covered these definitions in our earlier blog post.
- Many homes continue to sell over list price. Both 2021 and 2022 have shown this to be true, but we are seeing them be closer to 102.2% over list in 2022 vs 103.4% in 2021. This trend may continue, but the bottom line in this number is that the trend continues for a strong market; different than 2021 and expectations need to be adjusted, but still strong.
You can view the full report here: