Here is a quick update on what is going on in our Metro Detroit real estate market. Like most of the markets across the country we are still seeing an upward trend in sales prices. Yes we also still have low inventory. However at this point of our selling season we are starting to see more homes on the market. May to July is the hottest home sales months in Metro Detroit. Late August and September are slower because many families either made a home choice in order for the kids to be in the new school. They either have bought a house, wait until closer to December or wait until next year to make a move. This year we had a delay in strong sales. Normally April and May we start to see the market pick up and homes start selling. This year it seemed that it was a slow start but June and July were very strong.
There were bidding wars and multiple offer situations on some homes. Of course the first time home buyers market and the low price ranges (under $200,00) it was very strong. Buyers want homes under $200,000 in good communities. Everybody wants the best communities near Detroit. Buyers want good schools, and low crime yet near their work and family. I would say that is the criteria for most families, unless they do not have children. But even then most home buyers know that a community with a good school system will have good home values. There is a direct correlation between poor school systems and lower home prices.
There is a huge demand for low price range homes. Just recently I sold a house on Bobolink in Commerce Township for over list price. The house only had a Michigan basement that really wasn't useable. You had to enter the basement from outside of the house. However it was priced under $200,000. In Commerce there are very few homes in that price range. In 2 days we had 29 showings, 12 offers, and the majority of them were over list when the buyers agent found out that we had multiple offers. It sold in 2 days. It went for cash. But what that tells me is there are 28 other buyers still looking for a home under $200,000 in Commerce. So that market is going to be hot for a while.
What I am also seeing is that many home sellers either with the encouragement of their listing agent or deciding on their own to over price their home. Some are at the very top of the market and other's are OUT OF THEIR MIND. Yes some sellers are crazy with what they think they can get for their home. I have seen many homes $50,000 to over a $100,000 over priced. No buyer is going to pay that. If they do they are just making a huge financial mistake. It may take years for them to get from being underwater.
Our home prices in metro Detroit have come back to almost where they were before the crash. Home prices have sky rocketed and some people believe it is a bubble. They are just wondering when the correction will occur. So you do not want to be one of those home buyers that pay $50,000 or $100,000 over comparable homes sold. Sure the listing agent and the seller want you to....but don't do it!
I just received an email from a mortgage person on our Metro Detroit real estate market. They say in June, 14.2 percent of all U.S. homes listed for sale on Zillow had at least one price cut, up slightly from 13.4 percent in June 2017. So we are seeing some corrections. You just have to be a smart home buyer and have a good realtor in your corner to help you understand the local market you are in. It even varies from city to city in Metro Detroit. So hire a real estate agent that will do the work for you. The agent that will provide you with the information to make a smart financial decision. Have a great day. Russ Ravary your Metro Detroit Realtor For more information about Metro Detroit real estate go to http://www.michiganrelocationguides.com
