Tag Archives | #grandrapidsmihomesforsale

Instant House Valuation Websites

Beyond Home Valuation:

Check current market values for your home and view profiles of potential buyers.

An automated value estimate can give you a rough estimate of the value of your home. This can be a useful starting point.

Using a proprietary algorithm, you can see how many people are looking for homes like yours. If you are thinking of selling your home, this is the best way to get a feel for the market.

Find out more now:

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Is the Real Estate Market Finally Getting Back to Normal?

Is the Real Estate Market Finally Getting Back to Normal?

Is the Real Estate Market Finally Getting Back to Normal? | Simplifying The Market

The housing market has been anything but normal for the last eleven years. In a normal real estate market, home prices appreciate 3.7% annually. Below, however, are the price swings since 2007 according to the latest Home Price Expectation Survey:

After the bubble burst in June 2007, values depreciated 6.1% annually until February 2012. From March 2012 to today, the market has been recovering with values appreciating 6.2% annually.

These wild swings in values were caused by abnormal ratios between the available supply of inventory and buyer demand in the market. In a normal market, there would be a 6-month supply of housing inventory.

When the market hit its peak in 2007, homeowners and builders were trying to take advantage of a market that was fueled by an “irrational exuberance.”

Inventory levels grew to 7+ months. With that many homes available for sale, there weren’t enough buyers to satisfy the number of homeowners/builders trying to sell, so prices began to fall.

Then, foreclosures came to market. We eventually hit 11 months inventory which caused prices to crash until early 2012. By that time, inventory levels had fallen to 6.2 months and the market began its recovery.

Over the last five years, inventory levels have remained well below the 6-month supply needed for prices to continue to level off. As a result, home prices have increased over that time at percentages well above the appreciation levels seen in a more normal market. 

That was the past. What about the future?

We currently have about 4.5-months inventory. This means prices should continue to appreciate at above-normal levels which most experts believe will happen for the next year. However, two things have just occurred that are pointing to the fact that we may be returning to a more normal market.

1. Listing Supply is Increasing

Both existing and new construction inventory is on the rise. The latest Existing Home Sales Report from the National Association of Realtors revealed that inventory has increased over the last two months after thirty-seven consecutive months of declining inventory. At the same time, building permits are also increasing which means more new construction is about to come to market. 

2. Buyer Demand is Softening

Ivy Zelman, who is widely respected as an industry expert, reported in her latest ‘Z’ Report:

 “While we continue to expect a resumption of growth in resale transactions on the back of easing inventory in 2019 and 2020, our real-time view into the market through our Real Estate Broker Survey does suggest that buyers have grown more discerning of late and a level of “pause” has taken hold in many large housing markets.

Indicative of this, our broker contacts rated buyer demand at 69 on a 0- 100 scale, still above average but down from 74 last year and representing the largest year-over-year decline in the two-year history of our survey.”

With supply increasing and demand waning, we may soon be back to a more normal real estate market. We will no longer be in a buyers’ market (like 2007-February 2012) or a sellers’ market (like March 2012- Today).

Prices won’t appreciate at the levels we’ve seen recently, nor will they depreciate. It will be a balanced market where prices remain steady, where buyers will be better able to afford a home, and where sellers will more easily be able to move-up or move-down to a home that better suits their current lifestyles.

Bottom Line

Returning to a normal market is a good thing. However, after the zaniness of the last eleven years, it might feel strange. If you are going 85 miles per hour on a road with a 60 MPH speed limit and you see a police car ahead, you’re going to slow down quickly. But, after going 85 MPH, 60 MPH will feel like you’re crawling. It is the normal speed limit, yet, it will feel strange.

That’s what is about to happen in real estate. The housing market is not falling apart. We are simply headed in the direction of returning to a more normal market which, in the long run, will be much healthier for you whether you are a buyer or a seller.

To learn how this impacts you directly:

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Source: Michigan Real Estate Updates

HOMESt.A.R. – Exclusive Real Estate Approach

Your needs are first and foremost.

With time tested measures to ensure success, John Rice features the exclusive HOMESt.A.R.® process that allows us to provide the highest level service and to ensure best possible experience each step of the way.

Having assisted hundreds of clients throughout the years, one thing has remained front and center for every single transaction – the client’s needs – YOUR NEEDS– are #1 – period.

With this in mind the exclusive approach to ensuring your needs are met each step of the way and that the experience works to better your situation throughout the entire process.

The HOMESt.A.R.® process in an overview:

  • St. = Strategy.
  • A. = ACTION.
  • R. = Results.

Step 1 – Strategy.

During the buying and/or selling process it is important to, in the words of Stephen Covey “begin with the end in mind.”Without a doubt no ship reaches its destination without a pre-navigated course. Step 1 is developing the proper strategy. Time and time again we hear horror stories of people who started without a plan and ended up wasting thousands. We are here to ensure that there are plans in place to get you to your end goal while maximizing your results.

Step 2 – ACTION.

With the right strategy now outlined and agreed upon – it is time for ACTION. During this phase the team is here to assist you for every real estate need. Acting quickly and efficiently to work the market in your favor. Being a highly productive team we are able to be accommodate your time frame, be available when you need us, and make certain each opportunity is developed to its full potential. Guiding, informing, and negotiating for you. Making sure we are staying on target with your goals, and adjusting the plan to accommodate your needs as needed.

Step 3 – Results.

It is our intent that every client can answer a resounding “YES” to these 3 questions upon achieving their real estate goals:

  • Did I maximize my real estate transaction? YES!
  • Did I minimize all potential risks? YES!
  • Did I obtain all the right negotiation points in my favor? YES!

Working each step of the way toward obtaining your goals. Guiding you through the thick of the real estate transaction. Maximizing every opportunity to ensure you have all choices presented to you and that you are able to make an informed decision.

Real estate is our passion, the successful completion of your real estate goal is our mission. As a result of our relentless pursuit for high customer satisfaction we have consistent 5 star reviews and an incredibly high number of repeat and referred clients.

We welcome the opportunity to soon count you among our “clients” and look forward to hearing more about your real estate goals.

To get started on your free strategy session, click the button below:

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Where is the Housing Market Headed in 2019? [INFOGRAPHIC]

Where is the Housing Market Headed in 2019? [INFOGRAPHIC]

Where is the Housing Market Headed in 2019? [INFOGRAPHIC] | Simplifying The Market

Where is the Housing Market Headed in 2019? [INFOGRAPHIC] | Simplifying The Market

Some Highlights:

  • ­Interest rates are projected to increase steadily throughout 2019, but buyers will still be able to lock in a rate lower than their parents or grandparents did when they bought their homes!
  • Home prices will rise at a rate of 4.8% over the course of 2019 according to CoreLogic.
  • All four major reporting agencies believe that home sales will outpace 2018!

Source: Michigan Real Estate Updates