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.