Buying or Selling a Home: Market Conditions – May 2016

Many consumers are questioning, “Where are we in our housing recovery? At the middle? End? Or are we even heading towards another bubble?” Let’s take the “bubble” question first.  The potential bubble is rooted in the strength of the overall economy and housing leverage (mortgage balances getting ahead of home values). The indicators we watch for in terms of core economic factors can be evaluated based on the following questions: “Are jobs and household income growing?” For Michigan, “Are auto sales still strong?” “Is consumer confidence and spending still strong?” “Are there international or other factors that could slow the general economy?”  The answers to all of those questions are “yes” at the moment, save the international or “other” factors, which present as a wild card for the US, and the rest of the world as well (the silver lining in Brexit is even lower interest rates).

Michigan is still one of the top states in terms of economic activity and there are few current economic factors that could cause a housing slowdown for the next 12-18 months (just international issues and the Presidential election). Read More…

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