Real Estate Pricing Update

July is the month we give our quarterly pricing update and we wanted to start with the FHFA (Federal Housing Finance Agency) Actual Year-Over-Year price change in regard to individual markets.  What we can see is that in each region we had a very nice uptick in prices. Michigan is realizing a 5.41% increase in appreciation from last year this time.

Just to give you some perspective on how well we are doing nationally, the normal historic appreciation level is 3.6% and every one of the regions performed better than the norm with no region losing appreciation. 

Inventory levels continue to be at all time lows since 2011 and the reason why home prices continue to rise and appreciate.  It’s simply a matter of supply and demand.

However, buyer foot traffic is slowing down a bit.  This doesn’t mean there aren’t enough buyers out there, if anything, buyers may be getting discouraged from competing with multiple offers on properties and losing out.  Many are simply sitting back to recoup their energy and save more so they can better position themselves before hitting the pavement again.

There is some good news for buyers and sellers for that matter… mortgage rates are predicted to remain below 4% the remainder of this year giving buyers and sellers more purchasing power.  Not only does this spur buyer demand for first time buyers, but also that second and third-time buyer who currently owns a house and has to put it on the market, bringing more inventory to the market.  So now is the time to act as this window of opportunity may disappear.

As we head into the end of summer and beginning a fall, typically we will see sales prices slow down a bit with less buyer competition, so the market is still strong with great opportunities for both sellers and buyers.  If you would like to learn more about selling or buying a home in this market, give me a call.

 

 

 

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The BEST Month to Sell a Home

In a recent article published on SmartZip.com data was collected and reviewed to determine the best month to sell your home throughout the United States. The results were interesting (see below). Michigan is still a “Summer” month with hot sales.  This information is also good insight for those looking to relocate or buy locally.  You’ll get a glimpse on when the market is hot with the most selection of homes and when you might be able to pick up a bargain in the off-season.  If you would like to learn more about strategies for buying or selling a home, I’m here to answer your questions.

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To read the entire article visit Smartzip.com.

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4 Tips for Making a Competitive Offer

4 Tips for Making a Competitive Offer | MyKCM

So, you’ve been searching for that perfect house to call ‘home,’ and you’ve finally found it! The price is right, and in such a competitive market, you want to make sure you make a good offer so that you can guarantee that your dream of making this house yours comes true!

Below are 4 steps provided by Freddie Mac to help buyers make offers, along with some additional information for your consideration:

1. Determine Your Price

“You’ve found the perfect home and you’re ready to buy. Now what? Your real estate agent will be by your side, helping you determine an offer price that is fair.”

Based on your agent’s experience and key considerations (like similar homes recently sold in the same neighborhood or the condition of the house and what you can afford), your agent will help you to determine the offer that you are going to present.

Getting pre-approved will not only show home-sellers that you are serious about buying, but it will also allow you to make your offer with confidence because you’ll know that you have already been approved for a mortgage in that amount.

2. Submit an Offer

“Once you’ve determined your price, your agent will draw up an offer, or purchase agreement, to submit to the seller’s real estate agent. This offer will include the purchase price and terms and conditions of the purchase.” 

Talk with your agent to find out if there are any ways in which you can make your offer stand out in this competitive market! A licensed real estate agent who is active in the neighborhoods you are considering will be instrumental in helping you put in a solid offer.

3. Negotiate the Offer

“Oftentimes, the seller will counter the offer, typically asking for a higher purchase price or to adjust the closing date. In these cases, the seller’s agent will submit a counteroffer to your agent, detailing their desired changes, at this time, you can either accept the offer or decide if you want to counter.

Each time changes are made through a counteroffer, you or the seller have the option to accept, reject or counter it again. The contract is considered final when both parties sign the written offer.”

If your offer is approved, Freddie Mac urges you to “always get an independent home inspection, so you know the true condition of the home.” If the inspector uncovers undisclosed problems or issues, you can discuss any repairs that may need to be made with the seller or even cancel the contract altogether.

4. Act Fast

The inventory of homes listed for sale has remained well below the 6-month supply that is needed for a ‘normal’ market. Buyer demand has continued to outpace the supply of homes for sale, causing buyers to compete with each other for their dream homes.

Make sure that as soon as you decide that you want to make an offer, you work with your agent to present it as quickly as possible.

Bottom Line

Whether buying your first home or your fifth, having a local real estate professional who is an expert in his or her market on your side is your best bet in making sure the process goes smoothly. Let’s talk about how we can make your dream of homeownership a reality!

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Lack of Inventory Continues to Impact Housing Market

A Lack of Inventory Continues to Impact the Housing Market | MyKCM

The housing crisis is finally in the rear-view mirror as the real estate market moves down the road to a complete recovery. Home values are up and distressed sales (foreclosures and short sales) have fallen to their lowest point in years. The market will continue to strengthen in 2019.

However, there is one thing that may cause the industry to tap the brakes: a lack of housing inventory! Buyer demand naturally increases during the summer months, but supply has not kept up.

Here are the thoughts of a few industry experts on the subject:

Lawrence Yun, Chief Economist at National Association of Realtors

“Further increases in inventory are highly desirable to keep home prices in check, the sustained steady gains in home sales can occur when home price appreciation grows at roughly the same pace as wage growth.”

Jessica Lautz, Vice President of NAR

“There’s a supply-demand mismatch… More inventory is needed at the lower end and a price reduction may be needed at the upper end.”

Danielle Hale, Chief Economist of Realtor.com

“Heading into spring, U.S. prices are expected to continue to rise and inventory is expected to continue to increase, but at a slower pace than we’ve seen the last few months as fewer sellers want to contend with this year’s more challenging conditions… A buyer’s experience will vary notably depending on the market and price point they’re targeting.”

Bottom Line

If you are thinking of selling, now may be the time! Demand for your house will be strong at a time when there is very little competition. That could lead to a quick sale for a really good price!

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Mortgage Interest Rates are Still Going Up… Should you wait to Buy?

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Mortgage interest rates, as reported by Freddie Mac, have increased by close to a quarter of a percent over the last several weeks. Freddie Mac, Fannie Mae, the Mortgage Bankers Association, and the National Association of Realtors are all calling for mortgage rates to rise another quarter of a percent by next year.  Read More.

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Small Kitchen – Big View

by Linda Raveau

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Detroit Loft

City living is all the rage these days and Detroit is loaded with opportunities.  Having been born and raised in Detroit, I have seen the City go through many transitions and I’m really enjoying being a part of its redevelopment even if it’s in a small way.

This is a recent design project I worked on with a young professional working downtown that just purchased this condo in the Lafayette Towers.  It was a blank slate with lots of potential and challenges … the kitchen was very claustrophobic and totally enclosed.  It had an odd window cut out that peered into the living room.  Not sure if the original plan was so you could talk to those in the room or to capture a glimpse of the main view which was this monstrous view of the river front.

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Well… the wall must go!

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Detroit Loft – Removed Wall to expand Kitchen

By removing the wall, the space was immediately united to the view and although the new peninsula extended into the living room by an additional 35 inches, the space was more engaging and free flowing.

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Detroit Loft – Peninsula

We also partially recessed the refrigerator into the closet behind to allow for additional room to move about when cooking and prepping. The countertops are quartz with a glass/stone combination backsplash that runs the full length of the wall as seen in the first photo.

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Detroit Loft

In the bathroom (click to see image) we designed a walk-in shower with a custom glass surround and seating.  The room was tiled from floor to ceiling for easy maintenance and to expand the space.

So if you are looking to remodel your home and have an awesome view to the outside, don’t be afraid to knock down that wall…  it just might be the right choice.

Detroit Loft

 

 

 

Note:  The living room is still under construction and once completed I hope to share how that beautiful view integrates nicely with the kitchen.

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THE TIME IS NOW TO BUY – 1% DOWN

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As you’ve been hearing all over the news media, mortgage rates are still at record lows.  As an Accredited Buyers Representative (ABR), I work with buyers all the time and even though inventory is low and the search is harder, there are still homes out there and many great programs to help buyers afford the home they want.

This is a new program where the buyer only has to pay 1% down and the lender contributes the other 2% giving the buyer an equity boost from day one!  Who wouldn’t want some equity from the start?  It could also help a buyer afford a higher price point.  So if you are in the market and need some expert guidance, get in touch with me.  I would love to help you achieve your dream.

Posted in buying a home, First Time Buyer, Michigan real estate, Real Estate News | Tagged , , , , , , , , | Leave a comment