According To Michigan Real Estate Agents The Market is Red Hot
I have several friends in the real estate business, and if you are a seller, you will be amazed how much you can get for your property. If you are a buyer, it’s a nightmare. Many agents are telling their buyers to make their highest offer first, as people are being very aggressive with their offers.
When the pandemic hit the housing market was put on hold, but now even with mortgage rates going up along with home prices, economists predict the market will stay strong because of tight inventories and also that Millennials are increasing demand in the market, as many are expected to purchase homes this year and next.
Now millennials make up the largest share of homebuyers in the US, according to a 2020 survey from the NAR. According to a new study by Realtor.com, buying is more cost-efficient than renting in a growing number of the largest cities in the country. This is encouraging news for the millions of millennials who are approaching peak homebuying age. Back in March of last year, the real estate market looked to be headed into a steep decline due to widespread stay-home orders.
Realtors are saying there are not enough homes on the market to meet the demand. The Lansing market normally has around 1200 homes for sale, currently there are only about 300 listed. People who had no plans to sell their home and move, are putting their house on the market because of the demand, and the fact that there are lots of profits to be made.
On the other hand, due to the pandemic many are not comfortable selling their home right now, according to some agents. And that could be why there is such a small inventory of homes for sale. Low interest rates are good for buyers right now, but when it comes time to make an offer, you had better go big or you could be outbid. Home owners are seeing offers within hours of their home being listed,
When putting an offer down for a home, Remax realtor Rob South says you should know the difference between the listing price and the market value. He says buyers are not paying too much over the market value, when they pay over the listing price. “Just because you’re paying 10 or even 20% over the listing price, doesn’t necessarily mean it’s not the market value of that home. It just means that you’re paying over the listing price.”
It’s a tough time to buy a home but not impossible, you need to make a plan with your buying agent and stick to it. Go with your top offer, and don’t get discouraged.
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