Open House Schedule this Weekend September 29 to 30!

This week highlights 4 properties including a new listing!
http://nexthomecityrealty.com/open-houses/

📣 3798 Newport Way Drive, Waterford Twp 48329 on Sunday with Steve K

12 PM to 2 PM

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

📣 39153 University Dr. Sterling Heights, 48310 on Sunday with Steve F.

1 PM to 3 PM

Move right in! Beautiful updated ranch in sought after area. Gorgeous dark Hardwood floors throughout most of home. Open to the family room, the Kitchen boasts neutral ceramic tile, light oak cabinets and a generous eating area. Nearby wet bar offers easy entertaining. Grand family room with gorgeous stone gas fireplace, hardwood floors, cathedral ceiling and double doors leading out to the brick paver patio. Don't miss the spacious bedrooms and updated baths with granite countertops. Lower level has a recreation room complete with gas fireplace and another wet bar for entertaining. Tons of storage too! Private, fenced back yard with hot tub and beautiful landscaping. All this and a convenient location close to shops, restaurants and entertainment. BATVAI

OPEN HOUSE

📣 4021 COMMERCE Road, Orchard Lake 48324  with Chris

Saturday at 2 PM to 5 PM

Sunday at 12 PM to 3 PM

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. BATVAI

OPEN HOUSE

📣 12915 Scott Road, Springfield Twp  on Saturday  with  Gayle

12 PM to 2 PM

Pride of Ownership shows. 4 bedroom 2 1/2 bath home on a beautiful 2.63 acres. First floor owners suite with updated master bath. Open, airy first floor with kitchen and eating area. Beautiful views from inside and out. Large deck off great room. Two car attached garage. Full unfinished basement with 8' ceilings ready for your personal touch. Home has three outbuildings. BATVAI

Home Prices: The Difference 5 Years Makes

CoreLogic recently released their Home Price Index Report. One of the key indicators used in the report to determine the health of the housing market was home price appreciation. CoreLogic focused on appreciation from July 2013 to July 2018 to show how prices over the last five years have fared.

The graph below was created to show the 5-year change in price from July 2013 to July 2018 by price range.

As you can see in the graph, the highest price appreciation occurred in the lowest price range with 48% growth, while the highest priced homes appreciated by 25%. This has been greatly fueled by the lack of inventory of homes available at the lower price ranges and high demand from first-time buyers looking to enter the market.

Where were prices expected to go?

Every quarter, Pulsenomics surveys a nationwide panel of over 100 economists, real estate experts, and investment and market strategists and asks them to project how residential home prices will appreciate over the next five years for their Home Price Expectation Survey (HPES).

According to the Q3 2014 survey results, national homes prices were projected to increase cumulatively by 19.5% by December 2018. The bulls of the group predicted home prices to rise by 27.8%, while the more cautious bears predicted an appreciation of 11.2%.

Where are prices headed in the next 5 years?

Data from the most recent HPES shows that home prices are expected to increase by 20.0% over the next 5 years. The bulls of the group predict home prices to rise by 31.2%, while the more cautious bears predict an appreciation of 9.3%.

Bottom Line

Every day, thousands of homeowners regain positive equity in their homes. Some homeowners are now experiencing values even greater than those before the Great Recession. If you’re wondering if you have enough equity to sell your house and move on to your dream home, let’s get together to discuss conditions in our neighborhood!

Is the Real Estate Market Finally Getting Back to Normal?

The housing market has been anything but normal for the last eleven years. In a normal real estate market, home prices appreciate 3.7% annually. Below, however, are the price swings since 2007 according to the latest Home Price Expectation Survey:

After the bubble burst in June 2007, values depreciated 6.1% annually until February 2012. From March 2012 to today, the market has been recovering with values appreciating 6.2% annually.

These wild swings in values were caused by abnormal ratios between the available supply of inventory and buyer demand in the market. In a normal market, there would be a 6-month supply of housing inventory.

When the market hit its peak in 2007, homeowners and builders were trying to take advantage of a market that was fueled by an “irrational exuberance.”

Inventory levels grew to 7+ months. With that many homes available for sale, there weren’t enough buyers to satisfy the number of homeowners/builders trying to sell, so prices began to fall.

Then, foreclosures came to market. We eventually hit 11 months inventory which caused prices to crash until early 2012. By that time, inventory levels had fallen to 6.2 months and the market began its recovery.

Over the last five years, inventory levels have remained well below the 6-month supply needed for prices to continue to level off. As a result, home prices have increased over that time at percentages well above the appreciation levels seen in a more normal market. 

That was the past. What about the future?

We currently have about 4.5-months inventory. This means prices should continue to appreciate at above-normal levels which most experts believe will happen for the next year. However, two things have just occurred that are pointing to the fact that we may be returning to a more normal market.

1. Listing Supply is Increasing

Both existing and new construction inventory is on the rise. The latest Existing Home Sales Report from the National Association of Realtors revealed that inventory has increased over the last two months after thirty-seven consecutive months of declining inventory. At the same time, building permits are also increasing which means more new construction is about to come to market. 

2. Buyer Demand is Softening

Ivy Zelman, who is widely respected as an industry expert, reported in her latest ‘Z’ Report:

 “While we continue to expect a resumption of growth in resale transactions on the back of easing inventory in 2019 and 2020, our real-time view into the market through our Real Estate Broker Survey does suggest that buyers have grown more discerning of late and a level of “pause” has taken hold in many large housing markets.

Indicative of this, our broker contacts rated buyer demand at 69 on a 0- 100 scale, still above average but down from 74 last year and representing the largest year-over-year decline in the two-year history of our survey.”

With supply increasing and demand waning, we may soon be back to a more normal real estate market. We will no longer be in a buyers’ market (like 2007-February 2012) or a sellers’ market (like March 2012- Today).

Prices won’t appreciate at the levels we’ve seen recently, nor will they depreciate. It will be a balanced market where prices remain steady, where buyers will be better able to afford a home, and where sellers will more easily be able to move-up or move-down to a home that better suits their current lifestyles.

Bottom Line

Returning to a normal market is a good thing. However, after the zaniness of the last eleven years, it might feel strange. If you are going 85 miles per hour on a road with a 60 MPH speed limit and you see a police car ahead, you’re going to slow down quickly. But, after going 85 MPH, 60 MPH will feel like you’re crawling. It is the normal speed limit, yet, it will feel strange.

That’s what is about to happen in real estate. The housing market is not falling apart. We are just returning to a more normal market which, in the long run, will be much healthier for you whether you are a buyer or a seller.