The real estate market has had people on edge all year, but especially as of late. With summer coming to an end and the leaves changing, those with houses still on the market may start fretting that their house is never going to sell. Especially here in Michigan where we have a very definite slow season in winter. We have already started to see a slow down in Ann Arbor. The average number of days on the market for a home in Ann Arbor last month was 23 which is 7 days more than in July. But don’t get all gloom and doom on us yet. The real estate market in Saline is hopping with the average number of DOM being only 10 days in August. That’s a 19 day decrease since July. This is mainly due to the lack of immediately available homes on the market right now. But honestly, a 23 day average sale time is still quite impressive historically speaking.
The Good News
The media may be continuing to run scare reports about the housing market, but the crash THEY predicted never happened (just like WE predicted it wouldn’t), and we don’t forsee it happening any time soon. Although mortgage interest rates continue to hover between 7 and 8 percent, the low inventory is keeping the market and home values strong. Nationally, home prices rose 1.5% month over month and the number of delinquent loans continues to go down. These are all great signs for the real estate market.
The Bad News
Home affordability continues to be a problem. Especially with millenials where 1 in 5 believe they will never be able to afford a home. With interest rates being where they the average principal and interest payment in America is $2306. This is the highest in history. Many millenials find themselves feeling the squeeze with student loans and cannot come up with the money for downpayments or inflated mortgages.
What It Means For You
Yes, we will have a slow down this winter like always, but if your house hasn’t sold yet, don’t panic. The market is still strong and we are still seeing multiple offers on quality homes. If your home has been sitting for awhile though, consider one (or more) of the following to help get your house sold before the weather gets cold.
- Freshen up your porch with some fall decor and have your agent update the main exterior photo
- Do some lawn clean up – first impressions start with the exterior
- Do a few low cost but high impact updates and have your agent update the photos of those items
- Consider reducing the price
Thanks for reading!
MI Home Team Realtors
Published on 2023-09-13 16:10:39