As the leaves turn brilliant red and orange in Michigan, we find ourselves in a transitioning and balancing market. Interest rates as of this blog are at 6.625% for a 30 year fixed mortgage, and homes are still selling. Not at the torrid, unprecedented pace we saw during and post covid, but they are selling and buyers are still buying. Where we used to sell homes in 1 to 3 days, now it is 1 to 3 weeks or more. Having been through many market shifts and particularly 2008, we are still in a good market. Fannie Mae just announced they expect rates to be back into the low 4 percentile in March of 2023, and time will tell. Demand continues to build while many buyers remain patient. Keep in mind that 6 to 7% mortgage rates are not terrible historically, as I can remember 13% and higher. But compared to the rates we had 2 years ago, today’s rate has kept many buyers from buying. Also keep in mind that a buyer can buy now without the crazy overbidding that we experienced for over 2 years, so this market remains a good time to sell and buy. Visit us at http://www.randymillerhomes.com for more information.
As summer 2019 winds down…
Wow – another Michigan summer slips towards fall and the leaves are obviously in transition. Typically our real estate market quiets a bit the week before and week after Labor Day. Back to school and last chance summer vacations always create this quiet time, but we will pick up again mid September we normally finish strong in October, November and early December. It is already shaping up to do just that again in 2019. Interest rates are fantastic for buyers but available homes for sale are still low and homes priced appropriately are selling fast. Rural areas still lag behind the busier communities, but fall should also bring some last quarter interest to them as well. It has been a very strong year again and we’ll see if 2020 continues. The election year of 2016 was excellent and it is looking like 2020 may just follow suit. All indicators are very positive but the gloom and doom media continues to warn of a market adjustment. We will see…. have a great holiday weekend!
Happy February!
WOW – what a COLD week we just experienced in southeast Michigan! We are about to experience a 65 to 70 degree swing by Sunday and it will feel like spring. I fully expect our real estate market to continue strong through 2019, but an adjustment is inevitable as we are now in our 7th year of strong recovery and growth. I don’t think we will see a lot of the crazy overbidding we’ve seen in recent years. Interest rates are ticking back and forth and Buyer interest is still very strong. But I think we will see a slight increase in available homes for sale once spring hits. All indicators I see every day is for a very good market here in this area. If you know anyone looking to sell or buy a home, let us know so we can give them the “wow experience” that we strive to give. We helped dozens of families sell and buy homes in 2018 and we love our real estate family. Let us make you or your friends part of ours. Make it a great weekend!
The Randy Miller Homes Team!
As our real estate practice continues to grow we are proud to announce our official name change. The scope of our team goes far beyond Jennifer, Michelle and myself as we continue to add trusted sources to confidently refer to our clients. Mortgage lenders, title company, contractors, movers and more. We don’t refer a source unless we have 100% confidence in their abilities so our clients can trust that they will be serviced properly, ethically and honestly. Real estate is a profession and not a hobby, so we continually strive to better our services and systems for our clients. In a thriving real estate market thousands of people get their real estate license to try and quickly sell some homes but at the first sign of a market downturn, they are off doing something else. The same goes for contractors and many market related services. I grew and thrived from 2008 to 2010 when we experienced the worst real estate market in our lifetime. So when the market adjusts, we will be here giving our clients the same great service we do now.
Happy New Year!
Another year has rocketed past and we find ourselves in reflection of 2017 and great anticipation of 2018. From a real estate perspective it was another fantastic year of continued home value increases, driven by another 12 months of listing shortages which equates to a frustrating market for home buyers. Interest rates remain very good and all indicators tell me that we will experience another year of low listing inventory. Even though new construction is up, the price per square foot is sky high given the fact that those homes do not include window treatments, landscaping, patios/decks, finished basements and in many cases even sprinklers or sod/grass seed in the entire yard. Adding up those additional costs can tack a large sum on your home purchase. Ranch home sales are being driven by Baby Boomers who want to eliminate stairs and have everything on the ground level. Those Boomers are paying cash in many instances or a conventional mortgage with a huge down payment, so young buyers/families trying to buy that type of home is challenging especially if they are purchasing with an FHA loan (small down payment). Those are just a few examples of the things driving this market and in a nut shell, it is likely to continue through 2018. They keys for Sellers: make that home “show ready” in as many ways as possible getting a real estate professional’s opinion early. For Buyers: get a STRONG pre-approval or full approval letter from a reputable mortgage lender and be ready to act FAST. Many of our homes have sold in a day or two and for multiple offers which will likely continue in 2018.
‘Tis the season!
Another Christmas season is upon us and millions of us are asking where another year went! We love this truly magical time of year and oddly enough, homes continue to sell at a great pace even in December. There continues to be a listing shortage which has driven this Seller’s market for a few years now. All indicators tell us that 2018 will be another strong year for our local real estate market and it should be another Seller’s market with strong buyer competition. If you are a home Seller that is considering selling, there are lots of qualified Buyers out there looking for homes. Some of my peers will disagree, but we love Christmas decor to make a home feel warm and festive. If you’re a Buyer looking for homes, you can often get the jump on other Buyers who are busy with holiday events or travel. December and January have been our 2 strongest months for a few years now oddly enough. Make it a fantastic December weekend!
2017 – What Can We Expect?
Everyone is asking this question! In the geographic areas I work in (Oakland and Macomb counties especially) we have seen three consecutive “seller’s markets” over the past 3 years and I believe we will see one more. Interest rates are edging up but they will likely remain very palatable for 2017. However as they inch up, that will continue to motivate Buyers to find that perfect home before rates climb higher. Available homes for sale remain low and has for the past 3 years, which continues to push values up and I don’t see that changing. Many potential Sellers have been apprehensive about putting their home on the market with fears of not finding their next home, which has created a double edged sword. It has been tough for Buyers because of this listing shortage but if we move quickly, we can find you that dream home. For the “snowbirds” moving to their already existing southern home it has been fantastic since we can usually sell their homes very quickly and they don’t have to worry about finding another. In a nutshell, we should see another great year of increasing values which is great news for everyone.
Happy New Year and make it your best year ever!
Trust Experience
We are witnessing what always happens in a recovering real estate market. New Realtors, new real estate offices, contractors, etc. pop up everywhere to try and make some fast money. Then when the market cools they will disappear, close and go out of business just as quickly, moving on to make fast money somewhere else. When choosing a real estate or construction professional, do your research! No matter who you choose, trust your assets to those that represent the industry through good times and bad. Those of us that work even harder in bad times to maintain as much of our values as possible, then to help them recover. These are the professionals that work for our local values, not to make some fast cash and move on. It baffles me how someone will trust their most valuable asset to a nephew that “does real estate on the side.” Would you trust a surgeon who dabbles in his trade to do your major surgery?
11 THINGS YOU NEED TO KNOW TO PASS A HOME INSPECTION
While homebuyers are as individual as the homes they plan on purchasing, one thing they share is a desire to ensure that the home they will call their own is as good beneath the surface as it appears to be. Will the roof end up leaking? Is the wiring safe? What about the plumbing? These, and others, are the questions that the buyers looking at your home will seek professional help to answer.
According to industry experts, there are at least 33 physical problems that will come under scrutiny during a home inspection. We’ve identified the 11 most common of these and, if not identified and dealt with, any of these 11 items could cost you dearly in terms of repair.
In most cases, you can make a reasonable pre-inspection yourself if you know what you’re looking for. Knowing what you’re looking for can help you prevent little problems from growing into costly and unmanageable ones.
See the link below for a printout (double sided, 3 fold brochure) of the 11 Things You Need to Know to Pass a Home Inspection. Not only do you need to know but you, more importantly, need to fix, repair, install or replace!
The negatives of a recovering market.
Many people think a recovering real estate market is all positive news. However a recovering market creates more opportunity for unethical contractors. Contractors with good reputations are booked for weeks and even months, so this is the time when tradespeople come out of the woodwork and we see an increase in poor workmanship and even homeowners being scammed. Try to use contractors who have strong track records and are referred from friends and Realtors. It’s the contractors (and Realtors) that make it through the bad times that are usually your best choices! I see lots of contractors and Realtors resurface when the market recovers, having left to do something else when times get tough. We also see a lot of people get their real estate license when the market is hot because it’s easier to sell homes then, and those same people normally disappear just as fast when things slow down and you have to work harder for your clients. My suggestion is to go with the experienced when selling your home. Would you trust your stocks and investments to a first year financial advisor? Your home may be worth hundreds of thousands of dollars so why trust that investment to someone with no experience?
The Randy Miller Homes Team at RE/MAX Encore 