There has consistently been a housing inventory shortage in Mid-Michigan this season. This means the number of buyers outweighs sellers and the number of properties available, pushing the market into a seller’s market. With housing inventory shortages, an atmosphere is created where we see quick home sales that often result in an auction mentality, which can be difficult for homebuyers.
2017 Mid-Michigan Seller's Market Details:
Just how low is the housing inventory in Mid-Michigan?
The absorption rate is what is used to asses the state of the market to determine whether there is currently a buyer’s or seller’s market. The absorption rate is the number of months it would take to sell all of the available listings on the market. A balanced market, where there is no advantage for buyers or sellers is usually an absorption rate of 6 months. However, currently the absorption rate has dropped to 2.5 months and in many markets at many price points is below 2 months. This means that there are few listings available, and when they become available they are getting purchased quickly.
What the housing inventory shortage means for homebuyers
If you’re considering buying a home in Mid-Michigan, don’t let the low inventory and seller’s market deter you. It’s still possible to get an ideal home in your price range, you’ll just need to be in the mindset to move quickly. Buyers need to work with a great agent with the best tools to be successful. Experienced agents will be able to get buyers in front of new properties quickly, and will be able to write reasonable and competitive home offers to help get buyers into their dream homes. As a buyer in a seller’s market, it’s important to be patient and fast moving. You may find that for a period of time you won’t find a property that suits your needs and all of the sudden, within a few days, you’re bidding on multiple properties that suit your family. During a seller’s market you’ll most likely end up bidding on multiple properties until you make an offer that sticks.
A seller’s strategy during a seller’s market
If you are considering selling your home, but haven’t taken the plunge yet, now is an ideal time to put your home up for sale. When the market has a short absorption rate, seller’s will be in the driver's seat leaving them in a position of multiple offers, higher bids and a shorter sale period. A seller will need to be completely ready to move in a seller’s market, because chances are their home won’t stay on the market for long. A seller should look for a qualified and savvy agent that helps them take advantage of the current state of the market. They should find an agent with the best tools available to market their home properly to extract the highest possible price, in the shortest time, with the least inconvenience to them.
The housing market is rarely balanced, so being prepared for the ever changing state of the market is a part of purchasing or selling a home. A qualified realtor will have the tools and skill set needed to navigate the changing market, making sure you’re prepared for a seller’s market or buyer’s market alike. During a seller’s market the most important thing is to be flexible as the market tends to move a lot quicker than normal. Keeping a flexible attitude and open mindset during a seller’s market will ensure that your buying or selling process goes smoothly.
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