Homebuyer Competition Is Easing

 

It's no secret that buyer demand has been extremely high ever since the Federal Reserve substantially reduced interest rates during the pandemic. In fact, the median value of a home grew by more than 17% in 2021, which was the result of exceedingly high demand and a relatively low housing supply. 

When the market conditions heavily favor the seller, it's common for intense bidding wars to take place and home prices to be driven up as a result. While buyer competition is still high, there are signs that competition is easing. 



Fewer Offers
According to a recent report by the National Association of Realtors, the average number of offers made on sold homes has dropped by a considerable amount over the last few months.

The average number of offers per home reached a high of 5.5 in April 2022. Since then, the numbers have dropped steadily with each passing month. In May the average was around 4.0 offers, in June it fell to 3.3, and by July the average was just 2.5 offers per home. This number may drop even further in the months to come. 

Higher Interest Rates
This decrease in offers can be attributed to two things. Number one, higher interest rates. Multiple Fed rate hikes this year have made it more expensive to buy a home and have caused some buyers to leave the market temporarily. Number two, a slightly higher inventory of homes on the market. Buyers have more options to choose from and may not be scrambling to put offers in. With lower buyer demand and more homes on the market, competition is effectively reduced. 

What These Trends Mean for You 
Even though there were a high number of buyers that were searching for homes in 2021, many potential buyers decided to stay out of the market because of the intense competition. Even if you were willing to offer more than asking price, there was a good chance that you would have been outbid throughout most of 2021. 

What the last few months indicate is that buyer competition is easing, which significantly reduces the possibility that you'll need to manage a bidding war. Even though the market is still tilted towards sellers, a greater number of homes on the market means that potential buyers may be able to make an offer and purchase a home without too much hassle. 

If you avoided buying a home over the past couple of years because of the high competition, now might be a great time to start searching for a new home. Even though buyer demand is still relatively high, it has dropped considerably over the past few months. If you're in the market for a new home, you should have less competition when making an offer.

 Holly Hurd~ Berkshire Hathaway HomeServices HWWB, REALTORS.... your source for all your real estate. We are one of the Largest brokerage firms in Michigan, we have proven we can stand the test of time in this ever changing market place a proven leader for you and all your real estate needs. In today's competitive real estate market, timing is everything. Many good homes are sold before they are ever advertised. Beat other homebuyers to the hottest new homes for sale in the Wayne/Oakland co. area with my New Listings Notification. If you own real estate that you're thinking of selling, I would be happy to provide you with a FREE Home Evaluation. Whether you are buying or selling a home, hire someone like me, who wants to earn your business. I invite you to contact me as I'd be happy to assist you with this important transaction. In addition, if you have any general questions about buying or selling real estate in Michigan, please contact me as I'm more than willing to help.YOU CAN REACH ME DIRECT BY PHONE ANYTIME AT 734 718-5736 #YourHomeNorthvilleMichigan Real Estate Homes for sale in Northville Michigan Northville, Mi. 48167 #realtor #realestate #realestatemarket #hometown #hollyhurd #home

#historicnorthville #buy #buyingahome #buyrealestate #condo #homeforsale

#northvillemi #sellingyourhome #smalltown #shop #bhhs #buildahome 

#moveinmichigan #greattimetobuy #SOLD #realestateforsalemi 

#puremichigan #berkshirehathaway #sellahome 

Housing Inventory Hits New Low

by HOLLY HURD

U.S. Housing Inventory Hits a New Low…

List Your House TODAY!

Every summer, families across the country decide if this will
 be the year they sell their 

current house and move into their dream home.

Mortgage rates have hovered around 4% for all of 2017, forcing
 buyers off the fence and into 

the market, resulting in incredibly strong demand RIGHT NOW!! At the same

 time, inventory levels of homes for sale have dropped dramatically
 as compared to this time last year.

Trulia reported that “U.S. home inventory has tumbled 8.9% over the past year 

and has now fallen for nine consecutive quarters.” There is now
 20% less inventory than there was five years ago.

Here is a chart showing the decrease in inventory levels by category:

Bottom Line

Demand for your home is very strong right now while
 your competition (other homes for sale) is 

at a historically low level. If you are thinking of
 selling in 2017, now may be the perfect time.

Holly Hurd~
Is a REALTOR with Berkshire Hathaway Home Services
Northville, Michigan 48167
#1 Firm in MICHIGAN
hollyhurd@hotmail.com
Sell / Buy a home in Northville,Michigan register today at:
www.Northvillehomes4sale.net
Holly Hurd ~
Living in the Northville, Michigan area for 40+ years , Holly Hurd is 
graduate of Northville High School, Schoolcraft College, Michigan State 
then raising her own family here Holly Hurd has first hand
 knowledge and knows the area quite well.

Please feel free to contact her for all your real estate needs
 #homerocks#YourHomeNorthville Michigan Real Estate Homes
 for sale in Northville Michigan Northville, Mi. 48167 #realtor 
#realestate#realestatemarket #realestateforsalemi #hometown 
#hollyhurd #home#homesforsale #historicnorthville
 #buy #buyingahome#buildingahome #buyrealestate
 #condo #northvillemi #sellyourhome#sellingyourhome 
#smalltown #shop #bhhs
 #berkshirehathaway#moveinmichigan 
#greattimetobuy #puremichigan #SOLD 

5 Reasons to Love Using A Real Estate Professional

by HOLLY HURD

• Hiring a real estate professional to guide you through the process of buying a home or selling your house can be one of the best decisions you make!
• They are there for you to help with paperwork, explaining the process, negotiations, and helping you with pricing (both when making an offer or setting the right price for your home).
• One of the top reasons to hire a real estate professional is their understanding of your local market and how the conditions in your neighborhood will impact your experience.

Holly Hurd~
Is a REALTOR with Berkshire Hathaway Home Services
Northville, Michigan 48167
#1 Firm in MICHIGAN
hollyhurd@hotmail.com
Sell / Buy a home in Northville,Michigan register today at:
www.Northvillehomes4sale.net
Holly Hurd ~
Living in the Northville, Michigan area for 40+ years , Holly Hurd is graduate of Northville High School, Schoolcraft College, Michigan State then raising her own family here Holly Hurd has first hand knowledge and knows the area quite well.
Please feel free to contact her for all your real estate needs #homerocks#YourHomeNorthville Michigan Real Estate Homes for sale in Northville Michigan Northville, Mi. 48167 #realtor #realestate#realestatemarket #realestateforsalemi #hometown #hollyhurd #home#homesforsale #historicnorthville #buy #buyingahome #buildingahome#buyrealestate #condo #northvillemi #sellyourhome #sellingyourhome#smalltown #shop #bhhs #berkshirehathaway #moveinmichigan#greattimetobuy #puremichigan #SOLD

4 Reasons to Buy Your Dream Home This Winter

by HOLLY HURD

As the temperature in many areas of the country starts to cool down, you might think that the housing market will do the same. This couldn’t be further from the truth! Here are 4 reasons you should consider buying your dream home this winter instead of waiting for spring!

1. Prices Will Continue to Rise

CoreLogic’s latest Home Price Index reports that home prices have appreciated by 6.3% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 5.2% over the next year.

The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.

2. Mortgage Interest Rates are Projected to Increase

Your monthly housing cost is as much related to the price you pay for your home as it is to the mortgage interest rate you secure.

Freddie Mac’s Primary Mortgage Market ,shows that interest rates for a 30-year mortgage are currently at 4.08%. The Mortgage Bankers Association, Fannie Mae, Freddie Mac & the National Association of Realtors are in unison, projecting that rates will increase by this time next year.

An increase in rates will impact YOUR monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.

3. Either Way You’re Paying a Mortgage

There are some renters who have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent free, you are paying a mortgage - either yours or your landlord’s.

As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.

Are you ready to put your housing cost to work for you?

4. It’s Time to Move on with Your Life

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.

But what if they weren’t? Would you wait?

Look at the actual reason you are buying and decide whether it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe now is the time to buy.

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.

Holly Hurd~
Is a REALTOR with Berkshire Hathaway Home Services
Northville, Michigan 48167
#1 Firm in MICHIGAN
hollyhurd@hotmail.com
Sell / Buy a home in Northville,Michigan register today at:
www.Northvillehomes4sale.net
Holly Hurd ~
Living in the Northville, Michigan area for 40+ years , Holly Hurd is graduate of Northville High School, Schoolcraft College, Michigan State then raising her own family here Holly Hurd has first hand knowledge and knows the area quite well.
Please feel free to contact her for all your real estate needs #homerocks#YourHomeNorthville Michigan Real Estate Homes for sale in Northville Michigan Northville, Mi. 48167 #realtor #realestate#realestatemarket #realestateforsalemi #hometown #hollyhurd #home#homesforsale #historicnorthville #buy #buyingahome #buildingahome#buyrealestate #condo #northvillemi #sellyourhome #sellingyourhome#smalltown #shop #bhhs #berkshirehathaway #moveinmichigan#greattimetobuy #puremichigan #SOLD

Great Reasons to Sell Your Home NOW - During the Holiday Season

by HOLLY HURD

Every year as we head into the holiday season from Thanksgiving to New Year, many homeowners decide to wait to put their homes on the market for the first time, while others who already have their homes on the market decide to take them off until after the holidays. Here are six great reasons not to wait:

1. Relocation buyers are out there. Companies are not concerned with holiday time and if the buyers have kids, they want them to get into school by January 1. 

2. Purchasers who are looking for a home during the holidays are not tire kickers.  They are serious buyers and are ready to buy.

3. You can restrict the showings on your home to the times you want it shown. You will remain in control.

4. Homes show well when decorated tastefully for the holidays.  This is probably not the year for the live nativity on your front lawn, but a wreath and an appropriately sized tree make a home warmer. 

5. There is less competition for you as a seller right now. 

6. The supply of listings increases substantially after the holidays. Also, in many parts of the country, new construction will continue to surge reaching new heights in 2017, which will lessen the demand for your house.

7. The interest rates have finally started to move.  Any increase in the interest rate either increases the amount of the monthly mortgage payment for the buyer or reduces the price they are willing to pay for your home.  The Fed is threatening to raise rates in December. Don't wait till the spring and get less than you expected for your home. 

Holly Hurd~
Is a REALTOR with Berkshire Hathaway Home Services
Northville, Michigan 48167
#1 Firm in MICHIGAN
hollyhurd@hotmail.com
Sell / Buy a home in Northville,Michigan register today at:
www.Northvillehomes4sale.net
Holly Hurd ~
Living in the Northville, Michigan area for 40+ years , Holly Hurd is graduate of Northville High School, Schoolcraft College, Michigan State then raising her own family here Holly Hurd has first hand knowledge and knows the area quite well.
Please feel free to contact her for all your real estate needs #homerocks#YourHomeNorthville Michigan Real Estate Homes for sale in Northville Michigan Northville, Mi. 48167 #realtor #realestate#realestatemarket #realestateforsalemi #hometown #hollyhurd #home#homesforsale #historicnorthville #buy #buyingahome #buildingahome#buyrealestate #condo #northvillemi #sellyourhome #sellingyourhome#smalltown #shop #bhhs #berkshirehathaway #moveinmichigan#greattimetobuy #puremichigan #SOLD