(Pictured above: 6425 Thornapple Lake Road Nashville, MI | Lakefront. Click Here to view listing)
Moving On
We are brushing right by mortgage rates, purposefully. Experienced agents know that while rates can be an important player in real estate decisions, they are not the major driver. As history shows, mortgage rates play by their own rules and the average rate for a 30-year fixed mortgage does not typically hang out under the 5% mark. Moving On.
Market Stats
Markets Across the Country
Nationwide, existing home sales trended upward in November by .8% with a slight increase by 4% in the median existing home sale price. The upward movement of sales breaks a five-month streak of decline in units sold. Those homes only took an average of 25 days to sell, up a couple of days from October and 62% of homes sold in less than a month. Specifically in the Midwest Region, sales rose 1.1% from October to November with prices up 4.9%. (National Association of Realtors).
Southwest Michigan Market
In our region of the state (covering Van Buren, Calhoun & Kalamazoo Counties), the stats were not headed in the same direction. As expected this time of year, from October to November the number of active listings dropped by by almost 9% while the number of homes sold went down 30%. The average price of homes fell by only 3% as demand remained as strong as ever with average Days on the Market decreasing in every county.
All information deemed materially reliable but not guaranteed. Provided by Greater Kalamazoo Association of Realtors.
Looking Forward
Will you be ready?
It's time to get past the "feeling" of the market and look at the reality. Low Inventory equals a Lack of Options. Lack of Options equals Higher Prices. These factors create a limited market but people are still moving. Why?
Because they are not the only driving factors. As buyers and sellers have started to adjust to this changing market, their needs and priorities bubble back to the surface. Life events trump all else and the real estate clients we are having conversations with are preparing to sell and buy in 2024.
As we head in to the end of the year with Christmas, winter vacations, school breaks, New Year's and beyond, it's a natural shift in the market as people slow down and focus on family and friends. But the 2024 real estate market is shaping up to be productive and we are excited about the next year.
Will YOU Be Ready?
We are having these conversations with our sellers and buyers and many are PREPARING to move. Are YOU?
Buying a Home in a Traditional Market
The lack of competition on both sides of the for sale sign offers a slight relief for buyers, creating a little more wiggle room to shop. Although finding a home that fits your needs and budget can still be a challenge (some price points and ready-to-move-into homes are moving quickly) higher interest rates are keeping some home buyers browsing online making the competition a little lighter. With the right real estate team behind you, you can find value in our current homes for sale.
Buying a home in a seller's market can be a frustrating process if you aren't prepared. The market may be shifting to a more traditional style but you still have to be prepared. Here are some tips to get you ready to buy in today's fast-moving seller's market:
Price: Be Ready to Make a Strong Offer
Chances are, you will already have a price range in mind when you start your home/property search. In a normal market, you leave room for negotiation, your initial offer is often at the bottom of that range. However, in a seller's market, one can’t expect to go about it that way. Since you’re going to have a lot of competition, the price you initially offer may be your only shot at that property. In a seller's market, we tell our clients to be prepared NOT to get a 2nd opportunity to make an offer or negotiate. Make certain your offer is a strong contender, free of unnecessary contingencies as well as risk & uncertainties that will make the sellers uncomfortable. MAKE YOUR OFFER EASY TO SAY YES TO!
Pre-Approval
If you don't want to miss out on a property you love, make sure you are pre-approved for a loan BEFORE beginning your home search. Seller's will take you, and your offer, more seriously if you are pre-approved.
Contingencies
Most offers have 3 contingencies: loan approval, appraisal acceptance and satisfactory inspection results. These contingencies, if not fulfilled, allow a buyer to terminate a contract to purchase and retain all of their deposit money. There’s nothing worse for a seller than having their property tied up for a long period only to have things fall apart. Not having additional or high risk contingencies, minimizes the seller’s exposure and makes your offer look all that much better.
Also, ensure that your offer is NOT contingent on selling your current home. With buyer competition strong and multiple offer situations prevalent, sellers will likely choose to pass on your offer (even if it is higher than the others).
Bridge Loans Available
A bridge loan can help ease the transition from one home to another.
