If you have been shopping for a home at all in the last year, you know the selection of homes is very slim. There competition for homes is fierce because there is so little to pick from. One could say it is a jungle out there, but the better description is a desert.
An article in the April 17, 2017 edition of the Macomb Daily featured some staggering statistics from the Realcomp MLS about how 2017 is comparing to 2016 in terms of home prices and the inventory across the tri-county area:
- In Macomb County, average prices increased 5.4 percent, listings dropped 54.8 percent and days on the market before sale decreased 4 percent.
- In Oakland County, average prices jumped 9.3 percent, listings fell 39.7 percent and days on the market are down 14.5 percent.
- In Wayne County, excluding Detroit, average prices rose 14.7 percent, listings were down 45.1 percent and days on the market decreased 17.3 percent.
What this means for our area market is that we are at a 20-year low for inventory. There is a “perfect storm” occurring which is causing prices to inflate almost as fast as buyer frustrations. There are many causes of this low supply of home on the market:
- People that previously lost homes due to foreclosure or short sales are now getting to the point where they can obtain financing again and they are vying for the same properties as first time home buyers.
- Baby boomers are staying in their homes and not downsizing as was done by previous generations.
- People that own homes currently don’t see anything to buy that would be the “perfect home” to replace the one they have because the inventory is low.
- New construction has not caught up to the demand and are also not building homes within the budgets of many first time buyers.
So, if you have a home to sell, now is a great time to get it on the market. The trouble might be in finding something to replace it. For home buyers, patience and the strongest offer you can afford are the only things you can count on in this insane market. There really is no quick fix for the current market conditions unless we get an influx of inventory to match the current demand. All indications are that this market is going to be around for a while.
Broker and Owner of NBS Real Estate LLC has become a member of the Grosse Pointe Board of Realtors and Realcomp MLS Policy and Procedures Committee. This committee acts as a liason between the local board and the MLS and will look at the rule and regulations . Additionally, they will look at and rule on enforcement when violations occur.
This is another step toward NBS Real Estate’s commitment to integrity and trustworthiness within our office and the industry as a whole. Good work, Tim.
NBS has a strong history of supporting our nation’s Veterans and community first responders. We have family and friends that have served through the Army, Marines, Navy, Coast Guard, Air Force, Detroit Police, and many others. We take pride in serving the real estate needs of those individuals that sacrifice the most for their country and community. Which is why we offer a special listing commission for all active and retired US Military and first responders (Police, Fire, and EMS).
Additionally, Broker, Kevin Smith, is a “Did You Serve?” certified agent with Veterans United Home Loans and a preferred agent for the Metro-Detroit area. He has many years of experience in handling transactions where the buyer is using their VA benefit to finance a home purchase.
Contact us today to see how we can serve you!
We have finally relaunched our website www.nbsre.com on a new hosting provider, BlueHost. This move was made to make our site more customize-able and provide you with better information about the Michigan real estate market. You can expect to see all the useful information about NBS Real Estate you need along with updates on what is going on with the company and people in it.
We have removed the home search functionality from our website for a few very simple reasons. First, we can set you up to receive monthly, weekly, daily, or even immediate customized emails with homes that fit more exactly what you are personally looking for directly from the MLS. This removes the need for cumbersome online searches and not getting quite the search criteria you want because of some website limitation done in the name of simplicity. Contact us to start receiving those listings.
Secondly, if you do want to venture out on your own, there are websites (i.e. Realtor.com, moveinmichigan.com) that already do a great job with home search website and apps and we don’t need to reinvent the wheel.
We are excited to have the new look and we are glad you could join us!