There have been many changes in real estate with the coronavirus. The uncertainty of Covid has driven interest rates down. However home prices have continued to trend up just like they have since 2010. It’s still a good time to sell and I believe that there may be some changes in the next year for the higher price ranges. This is my professional opinion of what is going to happen in the real estate market in the next year for the price range of $300,000 and below homes. This category is what I would call the first time home buyer market, down sizers market, or the lower range market.
Relax in the gazebo
Here is my prediction…..THE LOWER RANGE HOMES ARE GOING TO CONTINUE TO BE A SELLER’S MARKET.
Here are my reasons why it will continue to be so for many years.
1.) People are living longer in a home. The pre 2000 days are gone. People used to buy a new house every 7 years on the average back then . Since the mortgage meltdown that is no longer the case. People are buying a home and it is their forever home. It is not unusual to see people stay in their homes 15, 20, or more years. They are no longer willing to take a gamble by buying a bigger home and being able to cash out with a huge profit.
2.) Older people 50+ are more apt to buy in that price range when downsizing. There are many ranches in that price range so older people that want a one floor house are going to be in that $100-$300,000 price range. So there is more competition that is not going to let up with all the baby boomers retiring in the years to come.
3.) Foreclosures……yes there may be some foreclosures coming in the upcoming year but it is not going to be like 2007 -2011. There are going to be much fewer foreclosures because the banks were stricter writing the loan. People weren’t able to buy a house with no money down (unless it was a VA loan). Tougher guidelines, and the requirement to have a down payment will keep many home owners in their homes. So you are not going to see tons of homes going into foreclosure.
3.) They are no longer building new homes and selling them less than $300,000. Land is too expensive to build a small house and sell it for less than $300,000. Most new homes start in the $400,000 range. You are no longer going to see a builder build a sub of $200,000 ranch or bungalow homes. It is no longer profitable for builders to do so. The bottom line is that the number of low priced homes is not going to change.
We have a limited number of homes in the under $300,000 price range and that is not going to change. The demand is always going to be high but there is no new supply. There will continue to be a sellers market for lower priced homes. The key is to not over pay. Be smart and don’t go crazy when bidding on a home. If you want a good full time experienced realtor that will give you honest answers and help guide you through the home buying process feel free to call or text me anytime.
Russ Ravary Your Metro Detroit realtor
Here is my positive thought for the day
Not to start on a morbid note, but you woke up this morning. Some people didn’t. Don’t think of it is as a depressing morality tale, just use it to remember that you’ve won the greatest gift life has to offer – you’re alive.
It’s so easy to dwell on the negative aspects of our lives, but we always seem to miss the most obvious positive thing we have – life itself. Take a deep breath, look outside your window, and marvel at the world around you.