Michigan Housing Forecast 2023
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Hey, everyone. Just want to take a few minutes out of your time today to go over with you the real estate market update for the first quarter of 2023. So if you’re already looking to buy or you’re selling your home right now, then you may have a good idea. But a lot of us who are not will not know. And so what’s going on right now it’s still a seller’s market.
It’s not like it was in 2021 and 2022 where you’re getting like tons of offers and an abundance of showings per se compared to what you’re seeing right now. But you’re still getting that strong activity because even though interest rates have increased for home buyers, there’s still more buyers than there are sellers right now. And the reason is, is that there’s less inventory, meaning fewer homes on the market than there were around this time in 2022. And so always what’s going to make that major factor if it’s going to be a seller’s market or not, is how much inventory that we have in comparison to the active buyers looking to purchase a home. And so we have even fewer homes for sale, we have fewer buyers in the market, but we still have a lot more buyers than we have homes for sale on the market.
And so what does this mean for buyers and sellers? Well, for sellers, it means that you have a great chance of still selling your home for more than it would sell for last year. It just won’t be a ton of buyers, but you’ll still maybe get three to five offers. Given that your home is in a desired location, it’s priced right, and the home is in that great condition that people love to have; you still have a bigger chance of getting a bidding war and still getting more for your home. What this means for home buyers, it means that you have less competition right now.
So you have a better chance that if you write your offer in a bidding war situation, you have a good chance of getting it. And if you’re getting a home that doesn’t meet those criteria, meaning it doesn’t have the updates that you want, it’s not priced right, or you aren’t in desirable location when looking, then you will most likely not have to get into a bidding war situation. Whereas in 2021 and 2022, those factors weren’t really coming into play here. So to sum it all up, for home buyers, it may be a better idea to buy now than it would have been last year because you don’t have as much competition, right? Even though the interest rates are higher, keep in mind, if you wait longer, interest rates could continue to go up, so that would affect your purchasing power.
So you have to decide what makes the most sense for you. If you need a home, obviously go ahead and buy, because if you need one, it’s better to have one than to wait around hoping that something will change for the better, even if it does not. So then also for sellers, what that means for you is go ahead and put your home on the market if you definitely want to sell. And keep in mind that if you were a seller that was waiting around to see, “okay, well, I have nowhere place to go. I don’t want to compete.”
Well, there’s still fewer homes on the market for sale, but at least now, if you sell your home and then buy, you have a better chance of actually getting your offer accepted. So that’s all I really have for you. I have a ton more information if you want to learn more. I can also get you the full housing report, the most recent one. Just leave a comment below or you can private message me or email me at [email protected]. And also, please share this with anyone you think this would be helpful to. And as always, close with Patrice.