The spring market is quickly approaching! While the weather may not reflect spring, the housing market is. Over the last few months, we have seen a continued rise in housing demand and only expect that to continue as temperatures warm up. Attractive mortgage rates are also helping build up buyer demand.
We are seeing a tight inventory of homes available across most markets with a high demand for buyers. Southeast Michigan is experiencing low inventory levels, probably the lowest in the past fifteen years or so.
Homes priced below $500,000 are staying on the market for a shorter time than last winter, proving that buyers are quicker to purchase when the homes are move-in ready. Homes are also being sold at higher prices so far in 2017. RealComp reports that the median sales price this winter was up 7.5% over last year.
Detroit is making moves once again, up to #13 on Realtor.com’s list of “Hot Markets.” While the average number of homes being sold is down slightly, the values are increasing.
Last year, the top months to list a home fell during April, May and June. This year we can expect that more homes will be listed in the early spring months due to high demand and low interest rates.
Speaking of interest rates, the Federal Reserve could be ready to announce another rate increase today. The good news is that our economy continues to grow, job growth is strong, unemployment has ticked down to 4.7 percent and mortgage rates are still quite low and very affordable. The trend of slight interest rate increases will motivate buyers to speed up their process of purchasing a home.
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Supply & Demand
Inventory by Price Range