Housing market....

lone racer

lone racer

Club Member
Anyone have any input on the matter, I feel property value is inflated at the moment (my assessed value jumped last year) and feel the recent SOLD are pricy for the area. Eventually this COVID thing is going to pay its toll in this market in the next year possibly??
Time to get out of the city, I need elbow room! with a barn and out building. lol
Who’s market is it? Buy or Sell
 
As long as rates stay low prices should hold. The cost of borrowing money is cheap. I have a feeling a lot of new buyers have no idea how much their annual property taxes are, they just shop based on total payment.
 
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So short term its a sellers market. Money is cheap, when you can get a loan at 2% you can spend more on a house.

Long term, I'm not sure what will happen. With more companies allowing work from home and selling offices in cities I think we might see a decline in suburbs close to the city. People who always wanted room, but needed to compromise by driving to work in the city will sell their house and move to where they wanted. This might take a while, but I think at some level city/suburbs will decline a bit and country ish places will become more popular.
 
Definitely a sellers market, I’ve been contemplating selling mine as well being I could make over 100k in 4 years of ownership. Unfortunately the market is so hot it’s hard to find something comparable in my price range. When all these foreclosure holds are lifted the market will be flooded with houses that no one has payed for for the last two years and that will definitely drop prices. If you can time it right you can come out on top.
 
Time will tell. I think many white collar jobs will either stay remote, or partially remote. Commercial office space is expensive - employers are always looking for trimming admin costs, and this COVID scenario was a massive WFH pilot for many companies. Employee speculators / early adopters are already buying waterfront up north. I think the majority are still in a "wait and see" mode before selling down state and moving permanently up state... likely mostly 2nd home increases now. I think there's also some State of MI population risk as there's probably many people in SE MI only for the job (no family here), and if their job becomes a WF-anywhere mindset, many would move out-of-state... like to FL or TX.

Mortgage rates also heavily factor in. Not sure if that favors buyers or sellers, but will probably keep the market hot.

mikesfastss said:
Unfortunately the market is so hot it’s hard to find something comparable in my price range.
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This is why I don't really think it's a sellers market, as most sellers are usually looking to buy something bigger, and therefore paying the same type of % increases but on a larger house value.
 
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I could see how you feel that way. I’m saying it in the typical sense of houses are selling quick and usually over asking price or end up in a bidding war. Versus a buyer’s market of a flooded market and low ball offerings being accepted lol
 
I just hope these prices hold through this summer!

I too am hoping that the peaceful / private country
homes continue to be the desirable, sought after ones,
I will be offering one!
 
Just had a guy approach me outside at my house while getting the mail on Thursday.

Gave me a crazy cash offer on my house. Kind of creepy but he knew the year built, who the builder was, exact Sq Ft, etc... said thats the house him and his wife want. Said he was retired and him and his wife are interested in my house layout in my area.

I was reluctant to even tell the wife, but I told her last night.

Finding a house in this market is the tough part. Def a Seller market right now. As stated above with Interest rates in the 2% range its crazy hot where I am.

I do want a pole barn and she wants an in-ground pool!
 
I am a Realtor and it is a sellers market. PM me your address and I will run numbers for you. We do expect a dip in the market but that has been expected for the last few years.
 
Hey guys. Hope everyone is staying safe. What an absolute crazy 13 months. I hope you and your families are all healthy.

I’ve been in this business close to 20 years and I’ve seen pretty much everything when it comes to the economic housing ups and downs. With rates being where they’re at right now, we’ve never seen this before. There has never been a time in history when somebody could obtain a 30 year fixed mortgage under 3% with no points. There’s really only one reason why the rates are where they are and that’s because of the pandemic. They had to do something to keep parts of the economy moving or We would’ve fallen deeper into a recession. Unfortunately, a lot of people were scared to list their house which I don’t blame them, which resulted in a huge lack of inventory. Right now inventory is down and the homes that come on the market are selling within minutes as long as they’re priced fair in regards to what they’re selling. Lack of inventory is pushing up prices as people are willing to pray a premium, offer appraisal guarantees and in some cases pay $10-$20,000 over the asking price just to get into a home because unfortunately they don’t have a choice. Is it a good idea, not really because if the market decreases at all or corrects itself, you’re losing.

My take on it is this, rates where they’re at right now are keeping people refinancing/buying and keeping the market moving. People are definitely wanting to buy, they’re just having a hard time finding what they want. Even though prices are up, rates are down over 1% from this time last year therefore allowing you to purchase more of a home at a higher price for less of a monthly payment.

I expect we’re going to see a correction in housing and an interest rates sometime this year. With everything that’s going on with the newly elected officials, gas prices I’m sure are going to rise, and I believe interest rates will head back close to where they were in late summer / early fall of 2019. Once that happens, I feel that prices will See a correction and more homes will become available to purchase.

What I can tell you is this, if people are waiting for the rates to fall to below 2% , the chances of that ever happening are slim to none. Remember, we’ve never seen rates where they are at today, ever.

Stay safe
 
Krazybones said:
Just had a guy approach me outside at my house while getting the mail on Thursday.

Gave me a crazy cash offer on my house. Kind of creepy but he knew the year built, who the builder was, exact Sq Ft, etc... said thats the house him and his wife want. Said he was retired and him and his wife are interested in my house layout in my area.

I was reluctant to even tell the wife, but I told her last night.

Finding a house in this market is the tough part. Def a Seller market right now. As stated above with Interest rates in the 2% range its crazy hot where I am.

I do want a pole barn and she wants an in-ground pool!
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do it up baller
 
Krazybones said:
Problem is finding the house we want/need to replace it.

Steve is on point IMO
Bidding war on next one is not a fun place to be when your existing house is sold.
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PM me what you are interested in and I can at least keep an eye out for you.
 
We just sold our home in Canton for 20k over the 210k asking price. We had 7 offers on it the first day. Definitely a sellers market.
 
I've been looking off and on for the past few years, or so. Daughter moved in for a while while they were buying another home, but they'll be gone within a week or so, which means I can begin looking seriously once again. I really wanted to move to Tennessee, but I just turned 70 and if something happened to me, then the wife would be on her own with no one nearby.

I bought a home with 15 acres on Squirrel Road where the Chrysler Tech Center is in 1975. That home took over a year to find and that was sort of considered 'north' of the suburbs at the time. Chrysler bought me out in 1988 and I've lived in north Troy ever since.

I've decided to move a bit north to southern Genesee county or northern Oakland county. I want to stay along the I-75 corridor and south of 69 with a bit of acreage.....Trying to find something like that once again is pretty tough just like before, even that far north. I look for updates a few times a week. I don't think I'll have much trouble selling my current home because of the location. Several homes in my sub have sold this past summer and most went over asking. The home turnover in this sub has always been quite low and most of the ones which did sell were from the original owners who either passed away or went to a home. They are all getting older........

Of course one more fly in the ointment is that since I am not working anymore, I can't really qualify for a mortgage. My home is paid for and I want to take whatever I get for this home and hand it over for the new home. My new home budget is whatever I can get for my current home.

Seems we all have our new home problems...Good luck and I'll keep looking :)
 
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Not in Michigan, but if someone offered me 50k above eval (very unlikely), I would jump. But that's mainly because I would be able to buy property to build on and have the down payment needed for a custom built home. The value of my home has seen a massive increase in 4 years, so impossible, not improbable. Helps to be located near a larger auto manufacturer that buys homes like candy.
 
Roadrage said:
We just sold our home in Canton for 20k over the 210k asking price. We had 7 offers on it the first day. Definitely a sellers market.
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Canton is Red Hot... I wanted to put mine on the market last summer ... but thanks to covid I have both adult kids back home ...

my plan was to sell and go into an apartment for a bit and be picky on what I replaced my shack with ...

Hopefully I can put it on the market this summer ....
 
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