The Michigan housing market is hotter than a jalapeño’s armpit right now! Which, if you’re trying to sell a house, is VERY good.
But what if you’re trying to BUY a house? How does our current housing market impact hopeful homeowners?
Here’s Five Fast Facts about Michigan’s housing market & what it means for home buyers:
- ✈ It’s a Bird! It’s a Plane! - No, it’s just soaring home prices. Last week, the median home price hit $229,000 across 19 Michigan counties. That’s up nearly 10% from this time last year.
- 🏡 A seller’s market - Higher home prices are great – if you’re trying to sell and, you know - move back in with your parents. But if you’re trying to find another home to buy? Yeah, good luck with that.
- ⛔ No homes to be had - Not only are home prices up, there just aren’t that many for sale. Real Estate inventory is measured in months - and currently, there are only 1.1 months of inventory available. This is up a bit from last year, but it’s still not ideal for buyers. To be considered a “buyers market”, there should be six months or more of inventory.
- 💣 One more hit - So, home prices are up, and inventory is low – but wait, that’s not all, folks! Interest rates have also jumped! In February, the interest rate averaged 3.55% for home sales. Now it’s 5%, a record increase, and that means monthly payments are only going up!
- 🌊 When will the tide change? Even with rising home prices and interest rates, houses are still flying off the proverbial shelf - but experts expect a leveling off sometime this summer as inventory increases. By fall, it should be a better market for buyers.
🔥Bottom line: Yes, the housing market is on fire. It’s really a perfect storm of higher prices and lower inventory. But that’s not a storm first-time home buyers necessarily want to weather - so if you’re hoping to buy a home this year and have time on your side - you might want to consider waiting a few more months.
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