If you find yourself in the market for your dream home, you may notice that home prices are rising like never before in Michigan. Your search for homes within your budget may have become smaller within the past year and a half, and you are certainly not alone.
People spent more time in their homes in 2020 than ever before, leaving people longing for more space and anxious to leave small apartments in highly-populated cities.
During the height of the pandemic, inventory was low, and buyers were eager to have their offers accepted. Slowly but surely, we are seeing more and more houses come on the market, with bidding wars occurring more often than not. According to Realtor.com, median listing prices were up 10.3% from 2020 to 2021. In fact, according to Realcomp, Michigan’s real estate prices are the highest they have been since 2003. With a quick and aggressive rise, buyers and sellers are curious to see if a burst is coming.
For buyers, house prices are high, and offers are often coming in high above asking, which could make buying your dream home more complicated than it used to be. On the plus side, mortgage rates are low, making those high home prices more attainable.
For sellers, it is exciting to see the potential worth of your home continue to rise. Buyers are coming in fast and furious with offers, sometimes cash, often opting to fast-track the sale, waiving inspection, or allowing the sellers more occupancy time. According to Realcomp, the “average days on the market until sale” is now 18, down from 33 in 2020.
Both parties have pros and cons during this unprecedented time, but almost everyone is wondering just how long this could last.
An article on Forbes.com predicts that the hungry market may flatten in 2022. Although, experts are hesitant to refer to this as a ‘bubble,’ as the demand is justified this time around. (https://www.forbes.com/sites/billconerly/2021/07/27/the-end-of-the-housing-boom-will-be-when-mortgage-rates-rise-in-2022/?sh=3196cc716770)
Keep an eye on the real estate market in your town. We are in a unique period, and neighborhoods and changing quickly.
