How Does the Supply of Homes for Sale Impact Buyer Demand?

The price of any item is determined by the supply of that item, as well as the market’s demand for it. The National Association of REALTORS (NAR) surveys “over 50,000 real estate practitioners about their expectations for home sales, prices and market conditions” for their monthly REALTORS Confidence Index.

Their latest edition sheds some light on the relationship between seller traffic(supply) and buyer traffic (demand).

Buyer Demand

The map below was created after asking the question: “How would you rate buyer traffic in your area?”

The darker the blue, the stronger the demand for homes is in that area. The survey showed that in 38 out of 50 states buyer demand was slightly lower than this time last year but remains strong. Only six states had a ‘stable’ demand level.

Seller Supply 

The index also asked: “How would you rate seller traffic in your area?”

As you can see from the map below, 23 states reported ‘weak’ seller traffic, 22 states and Washington D.C. reported ‘stable’ seller traffic, and 5 states reported ‘strong’ seller traffic. This means there are far fewer homes on the market than what is needed to satisfy the buyers who are out looking for homes.

Bottom Line

Looking at the maps above, it is not hard to see why prices are appreciating in many areas of the country. Until the supply of homes for sale starts to meet buyer demand, prices will continue to increase. If you are debating listing your home for sale, let’s get together so I can help you capitalize on the demand in the market now!

How Much Has Your Home Increased in Value?

Home values have risen dramatically over the last twelve months. In CoreLogic’s most recent Home Price Index Report, they revealed that national home prices have increased by 6.2% year-over-year.

CoreLogic broke down appreciation even further into four price ranges, giving us a more detailed view than if we had simply looked at the year-over-year increases in national median home price.

The chart below shows the four price ranges from the report, as well as each one’s year-over-year growth from July 2017 to July 2018 (the latest data available). 

It is important to pay attention to how prices are changing in your local market. The location of your home is not the only factor which determines how much your home has appreciated over the course of the last year.

Lower-priced homes have appreciated at greater rates than homes at the upper ends of the spectrum due to demand from first-time home buyers and baby boomers looking to downsize.

Bottom Line

If you are planning to list your home for sale in today’s market, let’s get together to go over exactly what’s going on in your area and your price range.

Open House Schedules this weekend of September 8 and 9

OPEN HOUSE
📣 7605 Devins Ridge, Independence Twp 48348 on Sunday with Gayle
12 pm to 3 PM


218061113

Bridge Valley Family Resort. All on 1.5 acre lot. Estate boasts 5 bedrooms, 2 owner suites with private baths, jetted jacuzzi and showers. Two story great room with surround sound, gorgeous built ins, fieldstone gas fireplace and large windows for beautiful views of nature. Open concept kitchen perfect for entertaining. Home has granite and tile baths throughout. Customized laundry and mudd room with granite sink, cabinet and cubbies. Lower level is a finished waikout with large family room surround sound, stone gas fireplace built-in cabinetry. Full bath, ample storrage. Exterior has an in ground heated 36x18 pool with diving board. Breathless landscaping and ample yard to play. . Much, much more.



OPEN HOUSE
📣 3007 N. Vermont RO on Saturday with Leslie
3 PM to 5 PM


218075412

Immaculate Royal Oak brick bungalow in popular Red Run Heights neighborhood just blocks away from Red Run Golf Club and Red Run Park. This move-in ready 3 bedrooms home has 2 full baths, all beautifully updated in 2015. Kitchen offers granite counter tops, stainless steel appliances and ceramic floors. Beautiful hardwood floors on main level with a spacious family room that includes a gas fireplace and tons of natural light. Spacious Master bedroom has beautiful master bath and lots of closet space. Large finished basement for additional living space. Fully landscaped fenced in back yard with mature trees and large deck, perfect for outdoor entertaining. Welcome to your new home! Licensed agent must be present at all showings.



OPEN HOUSE
📣 3798 Newport Way Drive, Waterford Twp 48329 on Sunday with Steve K
12 PM to 2 PM
 

218023288

Come see this beautiful open floor plan Snug Harbour Ranch featuring 85' on All Sports LOON LAKE. Enjoy privacy and security in this private gated community. This is a perfect home for entertaining with its huge kitchen and Great Room spaces. Relax in your Master Bedroom with beautiful lake views. Your ensuite features ceramic tile, a large soaking tub and glass walk-in shower. Enjoy awesome summer activities in your FINISHED 2000+ sqft walk out basement. This space will amaze you with it's versatility and charm. Your glass block custom built bar will be enjoyed by everyone. The oversize lower level bedroom and full bath is perfect for your summer activities. Your garage is listed as a 3 car. You'll find that and much more making this space perfect for a car enthusiast.


OPEN HOUSE
📣 102 E Hickory Grove, Bloomfield on Saturday with Chris

218047895

Totally renovated in the last few years. Gorgeous new kitchen with white wood cabinets with soft close doors, quartz countertops and patterned aluminum backsplash. New laminate floor that looks like ceramic tile! Refinished, original wood floors on first floor, new carpet upstairs and in lower level, new Theratru doors and Oxbow windows. Freshly painted in soft, neutral palate. Updated baths. Upstairs bath is a European "wet room" which makes it 100% waterproof! Barrier free shower and euro modern fixtures. Three spacious bedrooms. Lower level is partially finished with small bar area and large rec. room. One car shared garage. Private rear patio. Furnace has had major overhaul, only the body is old. Amazing location!! Close to downtown Birmingham and easy access to I-75 too. Award winning Bloomfield Hills schools.




OPEN HOUSE
📣 4021 COMMERCE Road, Orchard Lake 48324 on Saturday and Sunday with Chris


218010679

Seller will entertain offers between $2,000,000 - $2,350,000. The pictures are good but you need to see this house to experience it. Overlooking the most sought after lake in Michigan, is this Aspen inspired gem. Breathtaking views of the lake from every room, the entire back of the house is glass. Spectacular unconventional design, two grand staircases with wood/iron detailing, and an elevator that goes to all 3 levels. Soaring 2 story Great Room with detailed moldings, floor to ceiling windows. Barrel roof and wood trim detailing in family room and spacious library with gorgeous Brazilian hardwood floors and 3 walls of bay windows. Amazing kitchen with Cherry LaFata cabinets, enormous granite island with second sink, SS top-of-the-line appliances including Thermador 8 burner oven/stove. Grand master suite with his/hers closets, huge bath with euro shower, separate jetted tub, his/hers vanities with space left over for a couch! Two other En-suites with walk-in closets


OPEN HOUSE
📣 175 Wimbleton, Birmingham on Sunday with Chris

12 PM to 2:PM


218011832

This 3 bedroom 2.5 bath spacious ranch overlooks the scenic Rouge River. You're within easy walking distance to all of Birmingham's amenities, Poppleton Park, the Farmer's Market (every Sunday), and even a large grocery store. Great Poppleton Park neighborhood, easy commute to downtown Detroit, less than 30 minutes. Wood floors through out and open concept spacious kitchen, living and dining area with 2 fireplaces. The home is very well insulated, low utility costs, perfect condo alternative with maintenance free landscaping including sprinkler system. 2 car attached garage. All season back porch and decks so you can sip your morning coffee or have dinner with family and friends while surrounded by nature. Handicap accessible. Updated kitchen and baths in 2003.

For more details and pictures,  here.

The Net Worth of a Homeowner is 44x Greater Than A Renter!

Every three years, the Federal Reserve conducts their Survey of Consumer Finances in which they collect data across all economic and social groups. Their latest survey data, covering 2013-2016 was recently released.

The study revealed that the median net worth of a homeowner was $231,400 – a 15% increase since 2013. At the same time, the median net worth of renters decreased by 5% ($5,200 today compared to $5,500 in 2013).

These numbers reveal that the net worth of a homeowner is over 44 times greater than that of a renter.

Owning a home is a great way to build family wealth

As we’ve said before, simply put, homeownership is a form of ‘forced savings.’ Every time you pay your mortgage, you are contributing to your net worth by increasing the equity in your home.

That is why, for the fifth year in a row, Gallup reported that Americans picked real estate as the best long-term investment. This year’s results showed that 34% of Americans chose real estate, followed by stocks at 26% and then gold, savings accounts/CDs, or bonds.

Greater equity in your home gives you options

If you want to find out how you can use the increased equity in your home to move to a home that better fits your current lifestyle, let’s get together to discuss the process.

The information contained, and the opinions expressed, in this article are not 
intended to be construed as investment advice. Keeping Current Matters, Inc. 
does not guarantee or warrant the accuracy or completeness of the information 
or opinions contained herein. Nothing herein should be construed as investment 
advice. You should always conduct your own research and due diligence and 
obtain professional advice before making any investment decision. Keeping 
Current Matters, Inc. will not be liable for any loss or damage caused by your 
reliance on the information or opinions contained herein.

Nine Reasons Why Your Southeast Michigan Home Hasn't Sold

Selling your Southeast Michigan home? Get a home value report.

Buying a Southeast Michigan home? Get full MLS access. 

If your home isn't getting enough attention from buyers, there could be multiple reasons why it's not selling. Today I'll be speaking about nine different reasons why this might be happening to you.

1. Your photos are terrible. Buyers go online to look at homes these days, and if your pictures aren't high quality, they're not going to stand out and your home will be lost in a sea of listings. Your first showing is now on the Internet.

2. It's overpriced. Buyers are aware of when they're getting a good deal or not. Don't test the market.

3. It doesn't show well. Buyers want turn-key homes that are ready to move into.

4. It's invisible online. Your home needs to be featured on Trulia, Realtor.com, Zillow, and we even put your property on Craigslist. We even market your home on international websites!

5. Your listing is stale. If you've had your home on the market for longer than a few months, people may think that something is wrong with it. This will cause your home to sit without offers, and you will net less money than if you had sold quickly.

6. Your house won't appraise. This comes back to pricing your home correctly so that it sells for top dollar.

7. Your property is unavailable to show. You need to be flexible as a seller if you want your home to sell quickly. Buyers need to come look at it, and you have to allow them that privilege.

8. You have the heat and power turned off. You need buyers to feel comfortable in your home and you need the lights turned on so that they can actually see the property.

9. The Flintstones live next door to you, and their property is degrading yours. Everyone has this problem, but you can offer to mow their lawn or perhaps bribe them with some food and drinks. At the very worst you can just construct a fence to obscure the view of their home.

Hopefully these nine issues have brought clarity to you as to why your home isn't selling. If you have any further questions, please don't hesitate to contact me!

#1 Reason to List Your House Today

If you are debating listing your house for sale this year or even early next year, here is the #1 reason not to wait!

Buyer Demand Continues to Outpace the Supply of Homes For Sale

According to the National Association of REALTORS’ (NAR) Foot Traffic report, there are more buyers out in the market right now than at any other time in the past three years.

The graph below shows the significant increase in foot traffic experienced this year compared to 2014.

The latest Existing Home Sales report shows that there is currently a 5.2-month supply of homes for sale. This remains lower than the 6-month supply necessary for a normal market and well below August 2014 numbers.

The chart below details the year-over-year inventory shortages experienced so far in 2015:

Bottom Line

Let's get together to discuss the inventory levels in your neighborhood and discuss a plan to help you gain access to the buyers who are ready, willing and able to buy today!

Over 23% Thinking of Selling. Why the Hesitation?

Last month, the National Association of Realtors (NAR) reported that housing inventory was down 4.7% from the same time last year and that the month’s inventory of homes for sale stood at 4.8 - far below the six months necessary for a normal housing market. Why is there such a shortage of inventory?

The recently released Homeowner Sentiment Survey suggests that the American homeowner may not be fully aware of the opportunities that exist in the current real estate market. The survey, conducted by Edelman Berland for HSF Affiliates, also reports that many homeowners would be placing their home up for sale if they were better informed about today’s market.

Since the housing industry is facing a shortage of housing inventory, the survey’s findings are crucially important.

The survey reported that 23% of current homeowners questioned are considering selling their home, but haven’t yet put it up for sale. That’s almost one out of every four houses. This is the inventory necessary to normalize the balance between “supply & demand” in the current market.

Why are potential sellers hesitating?

The survey shows that 55% of the 23% contemplating selling “would be more likely to put their homes on the market if given more information about the process”. What information do they need?

Here are a few of the challenges that potential sellers perceive to exist according to the survey along with what is actually happening in today’s market:

1. More than half (53%) don’t realize that “the number of homes for sale on the market is lower, giving buyers fewer choices”. As a matter of fact, only 6% of potential sellers believe that listing inventory has recently decreased.

In reality, as we mentioned before, inventory is down from last year.

2. 80% think credit scores make it difficult to get a loan.

In reality, though other studies have shown that many Americans believe that you need a credit score of at least 780 to get a loan when the actual median scores on closed loans are demonstratively lower than that.

3. 76% believe stricter lending requirements make it more difficult to get a mortgage.

In reality, the Mortgage Credit Availability Index shows lending standards have been consistently easing over the last year.

4. 68% think that current homeowners are trapped into their mortgages and are unable to sell their current homes.

In reality, a recent Fannie Mae study revealed that 32% of Americans are dramatically underestimating the current equity in their homes. Many more can afford to make the move they desire.

What’s the answer?

Every family should feel confident when they are buying or selling a home. In order to feel confident they need to truly understand their options and opportunities. HSF Affiliates CEO Gino Blefari put it best when he addressed the findings of the survey:

“Education is essential in today’s market. The stage is set for real estate professionals to connect with consumers, learn their needs and concerns and determine the best way for sellers and buyers to capitalize on the opportunities that exist today.”

How Can You Get More Money for Your Southeast Michigan Home?

Selling your Southeast Michigan home? Get a home value report 

Buying a Southeast Michigan home? Get full MLS access. 

The spring real estate season is here! Since there's a lot of competition out there, we thought we would share some tips on how to get the most money for your home! 

• Location: One of the top priorities of buyers is good location. Obviously, this is something you can't control, but it's something to keep in mind when selling your home. 
• Photography and videography: If you want to get top dollar for your home, it has to show well, especially online. Photo and video professionals have the tools to make your home pop off the page. Staging is another strategy that can make your home look great both in person AND online!
• Focus on local market: There are a lot of different things going on here in Southeast Michigan. What's true for Birmingham may be extremely different for what's going on in McComb County. Consulting a real estate professional can help you get a solid understanding of the relevant markets.

To learn more about how you can maximize the results of your home sale, give us a call or shoot us a quick email. We would love to help you take advantage of this great spring market! 

Is Your Southeast Michigan Home Ready for the Market?

Selling your Southeast Michigan home? Get a home value report here.

Buying a Southeast Michigan home? Get full MLS access. 

The spring market is finally here in Southeast Michigan, so I thought I would take the time today to share some tips to help you get your home ready to sell! 

• Curb appeal: If you really want to draw buyers into your home, the exterior needs to look stunning. 
• Staging: We have a stager on staff who will come out to your home and give you advice on how to make your home more appealing to potential buyers. 
• Small fixes: Replace light bulbs and touch up your walls to make your home look like a model home. Small imperfections add up and can really turn a buyer off.
• Pricing: An effective way to meet your home selling goals is to price your property in an attractive manner. You want to price it to sell, but you need to ensure you don't under price it. I have some strategies to help you figure out the perfect value for your home, so you don't leave any money on the table. 

If you have any questions about the selling process or if you would like our help getting top dollar for your home this spring, give us a call or shoot us a quick email. We would love to hear from you!