Need some drama? The real estate market in Michigan has been a willing provider over the past couple of years! Never a dull moment it seems! With low inventory and high demand, the prices soared, inspections were waived, and home buying was a challenge for the gritty and tenacious. This year and the predictions for the next, are a bit chiller, kind of like going from “Fast and Furious” to “Die Hard,” with a lot of interesting circumstances keeping the market in a continual state of flux.
Home prices
While housing prices in 2022 and heading into 2023 are still continuing to rise, they are doing so at a much slower pace giving home buyers a little reprieve. With that said, inventory is still not keeping up with demand, so it is still a seller’s market. According to Zillow Home Value Index, since 2012, homes across Michigan have gone up in value by 137%, so home ownership is still a great investment. And, that has been the trend since 2012 and is predicted to continue to rise gradually throughout 2023. According to Norada Real Estate Investments, today the median home in Michigan is $239,000.
Interest rate increases
Of course, interest rate hikes are causing some concern and slowing down the market, but if you need a home now, the good news is that there is less competition.
You can also lower your interest rate and ultimately, your monthly payment, with a few helpful strategies including:
- Improve your credit
- Choosing a shorter loan term
- Making a larger down payment
- Contemplate an ARM with a low introductory rate
- Be selective in your loan products
- Make lenders compete
- Checking into mortgage points
- Work with a mortgage broker
Most importantly, talk to your agent about the options out there. The agents at 616 REALTY are knowledgeable and have a lot of experience helping clients find the right home loan package for you.
New construction
According to some experts the inventory shortage will begin to ease in the latter part of 2023. An increase in new construction is predicted which could ease the shortage of inventory, but it could also be hampered by continued supply chain issues.
Selling your home
“Should I or shouldn’t I?” Selling your home is a big deal… a tough decision in 2023. There aren’t any simple answers. While you won’t see the number of bids or buyers interested in waiving inspections and buying like we did in the last two years and indeed the interest rates are slowing down buyers, it is still looking to be a seller’s market in Michigan for the unforeseeable future. Giving your home a little aesthetic boost, and of course, utilizing staging can make your home shine above the rest. Likewise, finding a brokerage that utilizes cutting edge marketing to get your home seen is essential too. As they say, “there is no time like the present.”
It would seem that 2022-2023 isn’t without its share of challenges as well, but with the right real estate brokerage like 616 REALTY and with an agent who knows and understands the challenges and is well-versed at navigating them, you can buy or sell real estate with peace of mind.
Contact us today!