Metro Detroit Real Estate Update 6/3/2021
Here is a quick update on Metro Detroit real estate. Homes in the suburban Detroit area are still selling quickly. Of course there are still some sellers that are still over pricing their home for the conditions. We have several over priced homes on the lake I live on. Plus I have seen several homes that are sitting on the market with my buyers. Condition and price still matter in this hot real estate market in SE Michigan.
It is still crazy out there though I believe their is a little slow down as some buyers are very frustrated. I have heard stories of SE Michigan home buyers losing 10 different bids on 10 different homes. It is hard for a home buyer to swallow that. Home buyers are getting very frustrated. Some are dropping out on looking. The problem is that there are so many buyers in the same situation. So even if a few buyers drop out there are still a lot of buyers looking for homes. So the demand is still going to be strong in the near future for home purchases.
So why is the demand so strong? Here are my thoughts on the whole situation.
1.) Interest rates are low which is allowing buyers to get more home for the money. However I am seeing cash buyers in this market. So that is not the only reason. My clients recently lost a bid to a cash home buyer in the 1.5 million dollar price range.
2.) Limited inventory. Fewer home owners are moving. One of the reasons for this is that home owners are staying in their homes from anywhere from 15 to 25 years. Before the mortgage meltdown the average home owner stayed in their homes on the average of 7 years. It’s a much longer time now, so there is less turn over and less homes for sale. Another 2 reasons for limited inventory is that it is hard for people who have to sell their home before they buy to purchase a home. Most sellers will not take an offer contingent on selling another home. The second reason that people aren’t moving is because it does not make sense to downsize for some home owners. The taxes on the new house may be more than their old house. In todays market it is hard to find a updated move in ready house with a first floor master that is comparable to the home they live in.
3.) The free money. We have gotten a lot of free money from the government. That has given the public a positive outlook. They have the sentiment that the economy is strong and is going to continue to be strong. So people are spending money. They are not worried about..not cutting back because they fear the economy is going down. They are buying houses.
4.) Many people can work from anywhere. I helped three different people from Chicago and New York that moved here because they could work remotely. More people have moved into Michigan than moved out in the last year.
If you are going to to buy a home you have to put in the best offer possible. Here is a link to How to win a bid on a Metro Detroit Home. If you are selling you should be able to sell your home in under a week if you price it right. The homes that are sitting for longer than a week are sitting because the price is too high for the condition of the property. If there are any issues like bad layout, in poor location, or structural problems then you need to be priced right. Like I said no reason not to sell your Southeastern Michigan Home in less than a week unless you are too high priced. It is key to price it right (preferably at the top of the comparables) to get a bidding war going. I have even had a bidding war on an outdated estate home that had peach countertops, worn/dirty carpet, and needing updates.
Here are just a couple of examples of what is going on in the market.
A) I listed a home in Commerce for $500,000 (at top of the market for recent comparables). It had 69 showings, 29 offers and ended up going for $600,000, with an appraisal guarantee, inspection waiver, and 45 days free occupancy
B) I listed a 1960’s West Bloomfield colonial for $300,000 (at top of the market for recent comparables). It ended up going for $350,000 with appraisal guarantee.
C) I listed a Livonia estate home for $274,000. It ended up going for $294000 and the home needed work.
I hope this has given you a little insight about what is going on in the metro Detroit real estate market and why. If you are looking to move soon and need a good realtor give me a call, text, or email me. My cell is (248) 310-6239 or email is yesmyrealtor@gmail.com
Russ Ravary your local realtor that really knows about our local real estate market.
Here are some links of past articles I have written that you may want to read. Positive Values make a huge difference in our outlook on life. Southeast Michigan home selling tips to help make your next move easier. If you want a look back at real estate history here is a quick read What’s in – what’s out – Oakland County real estate tips
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