Saline Housing Market May 2022

Are you thinking of buying or selling a home in Saline? Then today’s blog is exactly what you need to read! We are going to go over the main stats that we look at to determine the health of the Saline housing market. If you’re thinking of moving to Saline, be sure to check out our blog 5 Things to Know About Saline Before You Move Here.

Median Sale Price

Below is a chart of the Median Sale Price for a house in Saline. This is typically considered the biggest determining factor when considering the strength of the Saline housing market. As you can see (and are probably very well aware of) home values have been increasing rapidly ever since inventory started dropping rapidly. This rapid increase in home values has lead many people to wonder Is Saline in a Housing Bubble, but these charts do show the direct correlation of supply and demand being out of tune which is why values are increasing, not a bubble. For the month of April, the median sales price was $450,000 which is $2,015 more than March. The important thing to note about this, is the increase between March and April was $4,895 in 2020 and was $5,500 in 2021.

Saline Housing Market April 2022

This seems to indicate a slight leveling off in the market. The main reason for this is rising interest rates. Next week I will be diving into the rising interest rates more but for now, I’ll just say that since interest rates are going up, some buyers are rethinking buying a house. This decrease in demand has somewhat helped to calm the market down. However, it is important to look at the big picture and not get caught up in just one element.

 

Homes for sale

The number of homes for sale is key to the Saline housing market right now. As you can see the number of homes for sale continues to plummet. In April there were only 103 houses for sale, and as you know if you have been looking on your preferred real estate website, the vast majority are new construction. This lack of inventory is the main cause of rising home prices. As inventory levels come up and demand goes down we should see the return of a more typical market. Experts expect this to happen in 2023. In the meantime, home values are expected to rise 9% total for 2022.

Days on the Market

The number of days on the market is arguably the second most important factor when when considering the strength of the Saline housing market. It tells you what kind of market it is, a buyers market or a seller’s market. This chart makes total sense when you look at the other 2 charts. Typically anything under 60 days is considered a seller’s market. In April, homes had an average of 11 days on the market in Saline. If you have been watching the market at all you know this is true. Most homes are gone in less than a week.

Saline Housing Market Overview

Overall, the Saline housing market is still incredibly strong, but we are starting to see signs of things tapering off. It most likely won’t be until next year before the market corrects itself and even then, inventory is expected to remain on the low end for close to a decade. In short, the Saline housing market should remain strong for a long time. If you’re a seller who wants to sell while there is a maximum number of buyers, sooner will be better than later. If you’re a buyer, hang in there. Interest rates are going up so finding something sooner will be more cost effective than waiting. However while waiting will cost you more money, there won’t be quite as much competition so it waiting will most likely be less stressful as you won’t be in as many bidding wars.

Want to see how it compares to last month? Check out our April Housing Market Update.

Thanks for reading!

Chrissy Myers

MI Home Team

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