Changing Real Estate Market in Saline

Everyone knows that the real estate market is changing in Saline (and everywhere). That is how it works. The real estate market is constantly changing. It’s a never ending cycle shifting from buyer’s market to seller’s market and then back again. That’s just the nature of the beast, and yet every time it does, people (us Realtors included) seem to get anxious and worked up about it. I get it. Change is hard and scary! Especially when that change is tied to your personal wealth. The bigger and faster that change happens, the more anxious everyone gets. This time around, the changes seemed to happen almost instantaneously. Today we are going to talk about how the real estate market is changing in Saline, what experts say you can expect in the future, and how it effects you!

 

Why is the real estate market changing in Saline?

Everything started back towards the end of spring when 4 things were happening congruently. 1. Most of the buyers who really wanted to move had bought a house already, 2. The buyers who were left were tired and frustrated with the rising prices and the fierce competition, 3. The media was heavily advertising a housing bubble, 4. Most significantly, mortgage interest rates started going up. Because there were so many key factors happening simultaneously, when the final element of interest rates came into play, it was the straw that broke the camel’s back. As you know, almost immediately we began to see a changing real estate market in Saline and around the rest of the country. Usually this change is gradual. This time it was abrupt and THAT is what scared people so much.  Many buyers just decided to hold off  on buying a home and dropped out.

 

How is the real estate market changing in Saline?

If you have been looking home buying websites, you have seen how the real estate market is changing in Saline. The main change is that buyers have more options now! And consequently, the sellers have less. There are several reasons for this. Since there are fewer first time buyers and buyers in general, homes are sitting on the market longer. Historically speaking, they are still selling quickly which is why we are still considered to be a seller’s market. It just doesn’t feel like it to most people (especially sellers right now) because we got used to homes selling in 2 days. Now, when a home sits for 2 weeks, sellers are getting stressed out about it and drop the price. Under “normal” markets, it might take a month or 2 before a seller would drop the price. This is good news for buyers.

The slowdown in the market has also brought out more sellers. Sellers who were waiting to sell because they were nervous they wouldn’t be able to find a new home with all of the competition that was happening before. More sellers, means more inventory. More inventory is helping to balance out the supply and demand. I know what you’re thinking. More sellers does technically also means more buyers, but sellers now aren’t buying their next house until they sell their current one. Unlike before, when they knew that they would sell their home quickly, there is some uncertainty. They don’t want to get stuck making 2 mortgage payments. So there are a few actual buyers in the market, but there are a lot more “buyers in waiting.” Again, helping stabilize the supply and demand issue we’ve had for the last couple of years.

Overall, homes that are priced appropriately and are of a high quality of finish (well updated and clean with good curb appeal) are still selling within a week. Homes that need work, or are overpriced because the sellers didn’t realize the housing market in Saline is changing, are sitting around longer because buyers have options now.

 

What is the changing real estate market in Saline going to look like in the future?

We are going to continue to see the real estate market in Saline changing, but the changes will be more gradual. Things are going to start evening out to more typical levels of both demand and appreciation. So while list prices are dropping, nationwide, it is expected that home values will continue to increase. This may confuse some people because the drop in list prices makes it sound like home values are depreciating (going down in value), but in fact they are just decelerating (slowing in appreciation value). Only twice have home values actually depreciated since the 6o’s. We  Below is a chart showing what experts are anticipating for the future of home values.

home value forecast

We are also going to see a gradual shift from a seller’s market to a buyer’s market. It is expected that we will enter a buyer’s market around July of 2023. Keep in mind though that a buyer’s market does not usually mean a drop in value.

buyer/seller market forecast

What the changing real estate market in Saline means for you

If you’re a buyer:

You have more options and no longer have to overpay for homes that need work. You may even have room to negotiate. However, when you a see a home that you like, you will still need to pull the trigger quickly. High quality homes are still in high demand.

If you’re a seller:

You no longer are able to sell you home as is and get over asking price. If you want your home to sell quickly, try doing some updates (Don’t go crazy with it. Always keep your ROI in mind.), cleaning up the exterior, and pricing your home appropriately. You can’t look at what your neighbor got for their house last month and decide to list for 20k more unless you home actually is 20k better.

 

Change is scary, but knowledge is power. Just make sure your knowledge is being obtained from a reliable source.

Thanks for reading!

Chrissy Myers

MI Home Team

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