Tag Archives | #michiganrealestate

    Move-in Ready Home – 4175 Norman

    Wow! You are going to love this completely renovated, move-in ready home. BRAND NEW: All new kitchen with new kitchen cabinets, ceramic tiles (kitchen, dining, bathroom, tub, hallway), back splash, all new stainless appliances, professionally refinished hardwood floors, exterior and interior new paint, new carpet in the lower level, new driveway concrete, new landscaping/mulch, updated lighting, all new bathroom cabinets. Additionally within the last 2 years: installed new Trane furnace, new roof, and new deck. The wonderful backyard is fenced in and offers a large shed – perfect for storage or convert it into a outside entertainment area. Excellent location with easy access to shopping, dining, entertainment, and highways.

    4175 NORMAN DETAILS

    Top 3 Myths About Today’s Real Estate Market

     

    Top 3 Myths About Today’s Real Estate Market

    Top 3 Myths About Today’s Real Estate Market | Simplifying The Market

    There are many conflicting headlines when it comes to describing today’s real estate market. Some are making comparisons to the market we experienced 10 years ago and are starting to believe that we may be doomed to repeat ourselves. Others are just plain wrong when it comes to what it takes to qualify for a mortgage.

    Today, we want to try and clear the air by shedding some light on what’s causing some of these headlines, as well as what’s truly going on.

    Myth #1: We Are Headed for Another Housing Bubble

    Home prices have appreciated year-over-year for the last 76 straight months. Many areas of the country are at or near their peak prices achieved before the last housing bubble burst. This has many worried that we are headed towards another housing bubble.

    Reality: The biggest challenge facing today’s real estate market is a lack of homes for sale! Demand is strong, as many renters have come off the fence and are searching for their dream homes.

    Historically, a normal market requires a 6-month supply of inventory in order for prices to rise with the rate of inflation. According to the National Association of Realtors (NAR) there is currently a 4.3-month supply of inventory.

    The US housing market hasn’t had 6-months inventory since August 2012! The concept of supply and demand is what is driving home prices up!

    Myth #2: The Rumored Recession Will Lead to Another Housing Market Crash

    Economists and analysts know that the country has experienced economic growth for almost a decade. When this happens, they also know that a recession can’t be too far off. But what is a recession?

    Merriam-Webster defines a recession as “a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two consecutive quarters.”

    Reality: Recession DOES NOT equal housing crisis. Many people associate these two terms with one another because the last time we had a recession it was caused by a housing crisis. According to the Federal Reserve, over the last 40 years, there have been six recessions. In each of the previous five recessions, home values appreciated.

    Myth #3: There is an Affordability Crisis Looming

    Rising home prices have many concerned that the average family will no longer be able to afford the most precious piece of the American Dream – their own home.

    There are many different affordability indexes supported by different organizations that all measure different data. For this reason, there is a lot of confusion about what “affordable” actually means.

    The monthly cost of a home is determined by the home’s price and the interest rate on the mortgage used to purchase it. According to Freddie Mac, interest rates have risen from 3.95% in January to 4.59% just last week.

    Reality: As we mentioned earlier, home prices have appreciated year-over-year for the last 76 months, largely driven by high demand and low supply.

    According to a recent study by Zillow, the percentage of median income necessary to buy a home in today’s market (17.1%) is well below the mark reached in 1985 – 2000 (21%), as well as the mark reached in 2006 (25.4)! Interest rates would have to increase to 6% before buying a home would be less affordable than historical norms.

    The starter-home market has appreciated at higher levels (9.4% year-over-year) than any other market. One reason for this is the fact that many of the first-time buyers who have flocked to the starter-home market are being met with high competition. For some hopeful buyers, it may take more than a good offer to stand out from the crowd!

    Bottom Line

    There is a lot of confusion in today’s real estate market. If your future plans include buying or selling, reach out today and we can discuss the best ways to help guide you to the best decision for you and your family.

    MESSAGE JOHN

    Source: Michigan Real Estate Updates

    Rockford Schools – 4850 Cannon Woods Ct

    Nested on 2+ acres in the beautiful development of Cannon Highlands this gorgeous 2 story offers a peaceful oasis surrounded by nature. With 5 bedrooms 4 full baths, large windows and vaulted ceilings this home offers an abundance of natural light and exceptional nature views. The main floor master suite features walk-in closet, jacuzzi tub and custom walk-in shower, vaulted ceilings and more. Additionally the main floor offers a 2nd bedroom suite with accessible bath and shower with no-step access, office, large living room with vaulted ceilings, fireplace, & remodeled kitchen. Upstairs features 2 large bedrooms a 3rd full bath and superb reading nook overlooking the trees. The walkout lower level features built-in cedar sauna, ample storage, additional bedroom, living room and 4th bath With easy access to major highways, approximately 20 minutes to downtown Grand Rapids, close to Cannonsburg ski hill and several wonderful parks for year ’round fun.

     

    4850 CANNON WOODS CT DETAILS

    House-Buying Power at Near-Historic Levels

    We keep hearing that home affordability is approaching crisis levels. While this may be true in a few metros across the country, housing affordability is not a challenge in the clear majority of the country. In their most recent Real House Price Index, First American reported that consumer “house-buying power” is at “near-historic levels.”

    Their index is based on three components:

    1. Median Household Income
    2. Mortgage Interest Rates
    3. Home Prices

    The report explains:

    “Changing incomes and interest rates either increase or decrease consumer house-buying power or affordability. When incomes rise and/or mortgage rates fall, consumer house-buying power increases.”

    Combining these three crucial pieces of the home purchasing process, First American created an index delineating the actual home-buying power that consumers have had dating back to 1991.

    Here is a graph comparing First American’s consumer house-buying power (blue area) to the actual median home price that year from the National Association of Realtors (yellow line).

    House-Buying Power at Near-Historic Levels | Simplifying The Market

    Consumer house-buyer power has been greater than the actual price of a home since 1991. And, the spread is larger over the last decade.

    Bottom Line

    Even though home prices are increasing rapidly and are now close to the values last seen a decade ago, the actual affordability of a home is much better now. As Chief Economist Mark Fleming explains in the report:

    “Though unadjusted house prices have risen to record highs, consumer house-buying power stands at near-historic levels, as well, signaling that real house prices are not even close to their historical peak.”

    Source: Michigan Real Estate Updates

    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