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Comprehensive Home Sellers Guide Winter 2024

What Happened in the Housing Market in 2023?

2023 was a challenging year in the housing industry. Rising mortgage rates significantly impacted the housing market, leading to a noticeable cooling effect after a period of intense demand and high prices. The increase in mortgage rates resulted in reduced affordability for many potential buyers, slowing down the pace of home sales. 

Comprehensive Home Sellers Guide Winter 2024

Why Should I Sell My Home this Winter?

Comprehensive Home Sellers Guide Winter 2024 – With mortgage rates trending downwards, are you wondering about the current demand for homes? While it’s natural to feel uncertain about selling your home under changing financial conditions, you can be reassured that the market remains dynamic, with plenty of active buyers still keen on purchasing homes. This dip in mortgage rates could even fuel buyer interest further, maintaining a strong and vibrant market for home sales.

“Consider the life-changing events that took place during the past 2 years: 3 million marriages, 1.5 million divorces, 7 million births, 4 million deaths, and 7 million Americans reaching 65. Staying put isn’t an option for many growing families or divorcing couples. The dream of retiring to a home requiring less maintenance can’t be postponed indefinitely. People need and want to move.”

The reality is straightforward: There will always be buyers in the market, and those who can manage the current rates will continue to make their moves. Consequently, buyer demand remains present and active.

What is the Current Housing Inventory Level?

Is now a good time to sell? Currently, the inventory of available homes remains limited, maintaining a seller’s market. The existing imbalance, with more buyers in the market than available homes for sale, has intensified the demand for more options. Your property could be precisely what these eager buyers seek. In this climate of low inventory, correctly pricing your home can position it as a highly sought-after asset.

Comprehensive Home Sellers Guide Winter 2024

Did Homes Prices Crash When Mortgage Rates Went Up?

Comprehensive Home Sellers Guide Winter 2024 – To put it simply, home prices in Southeast Michigan are NOT in decline. Recent data illustrates that prices are steadily increasing at a healthy rate. While the micro-market may vary, experts predict that home values in Southeast Michigan will continue to appreciate at typical levels in the foreseeable future. With the most significant price drops behind us and a trend of current appreciation, you can confidently sell your home.

Comprehensive Home Sellers Guide Winter 2024

HOME PRICES HELD STEADY – Contrary to popular media narratives and despite increased mortgage rates and inflation issues, the actual data from Southeast Michigan’s housing market reveals a different story. Home prices remained remarkably stable and even appreciated, performing much better than what was often portrayed in local headlines and media.

Where are Mortgage Rates Headed in 2024?

In 2024, experts are projecting that mortgage rates will likely end up in the mid to upper 5’s, which reflects a gradual decrease in interest rates compared to 2023. This downward trend in rates benefits the housing market by prompting potential buyers to act sooner, driving increased demand, and potentially leading to a more stable and balanced real estate market.

"Further moderation in inflation this year will cause the 10-year Treasury yield to retreat even more from its current level. I'm penciling in a 3% yield for the key bond rate, down from where it ended the year at 3.88%. That's likely to drive the 30-year fixed-rate mortgage even lower....potentially to 5.75%."

Average 30-year fixed mortgage rates have been higher than usual relative to the benchmark Treasury yields they typically track. But that extra differential, or spread, has been shrinking for 8 straight weeks. It is now at its lowest since March 2023. The question remains how far this contraction in the spread will go? Will we return to the 172bps historical average? Even if it gets to 200bps, mortgage rates would be in the 5's."

What Happens Next with Home Prices?

Comprehensive Home Sellers Guide Winter 2024 – According to industry experts, the Southeast Michigan housing market is expected to see continued growth in home prices, albeit at a more “normalized” rate. This means that while home values are still on an upward trajectory, the pace of appreciation is likely to be more moderate compared to the rapid increases of the past few years, signaling a healthy and sustainable market trend.

Ready to take the next step in selling your home?

Don't navigate this journey alone. Reach out to Wendy and Greg at Kime Realty for expert guidance and a seamless selling experience. With their extensive knowledge and personalized approach, they're the perfect partners to help you achieve a successful sale. Contact us today and transform your home-selling aspirations into reality.

5 Reasons Why You May Want to Move Right Now

Comprehensive Home Sellers Guide Winter 2024

If you’re thinking about putting your house on the market now, it’s probably due to a shift in your circumstances. The encouraging news is that mortgage rates are now on a downward trend, creating advantageous conditions for selling your current home. This drop in rates can enhance affordability for potential buyers, making it an opportune time for homeowners like you to sell, as you could potentially secure a favorable rate on your next property.

Comprehensive Home Sellers Guide Winter 2024 – Here are some key reasons many are opting to sell their homes, especially now as mortgage rates begin to decline. You may discover that one of these factors resonates with your circumstances, making it an opportune moment to consider a move in light of the improving rate environment.

Comprehensive Home Sellers Guide Winter 2024 – Relocation is often prompted by various factors, such as a job change, the wish to be nearer to friends and family, the aspiration to reside in your dream location, or simply the yearning for a different environment. These motivations can strongly influence the decision to move to a new area.

CASE IN POINT: If you’ve recently secured your ideal job in a location far away from metro Detroit, you might be considering selling your current home to relocate for your new work opportunity.

Comprehensive Home Sellers Guide Winter 2024 – Many homeowners opt to sell their property in pursuit of a larger home or lot. This trend is particularly prevalent among those seeking extra room for entertaining, a dedicated home office or gym, or more bedrooms to comfortably house an expanding circle of family and friends. With mortgage rates going down, the “move-up” buyer will become a prominent buyer in 2024 after being on the sidelines in 2023.

CASE IN POINT: If you’re currently residing in a condo and your family is expanding, it could be the right moment to search for a house that more suitably accommodates your growing needs.

Comprehensive Home Sellers Guide Winter 2024 – Homeowners often choose to sell their property when it becomes too spacious due to someone moving out. Additionally, life changes such as retirement or a desire for a new environment can also prompt the decision to sell. In other instances, stairs can become an issue and moving to a ranch-style home or condo makes the most sense.

CASE IN POINT: You’ve just entered retirement and are considering moving up north in Michigan for a change of scenery, seeking a cozier home that’s easier to maintain. A new residence in this region might be more fitting for your refreshed lifestyle. Or you’re looking to relocate to a warmer climate with a smaller, more manageable home. In either situation, a different property may better align with your new lifestyle needs.

Comprehensive Home Sellers Guide Winter 2024 – Other frequent motivations for selling a home include life events such as divorce, separation, or marriage. During these challenging times, Kime Realty is here to provide supportive, expert guidance to help you navigate the complexities of selling your home with care and professionalism.

CASE IN POINT: If you’re going through a recent separation, continuing to live together might be challenging. Selling the shared home and finding your own space could be a more suitable solution.

Comprehensive Home Sellers Guide Winter 2024 – Homeowners experiencing mobility difficulties or health concerns that necessitate certain living adaptations may opt to sell their current home in favor of one that better accommodates their needs.

CASE IN POINT: You might consider selling your home and utilizing the proceeds to finance a residence in an assisted living facility.

Are you seeking a new home that more closely fits your needs?

Reach out to Wendy and Greg Kime at Kime Realty for a seamless connection. They'll guide you expertly through the process and assist in finding a home that perfectly suits your needs.

What 4 Benefits of Selling My Home When Inventory is Low?

Selling your home in a low inventory market as we are currently experiencing here Southeast Michigan offers several benefits, particularly when working with experienced real estate professionals like Wendy and Greg at Kime Realty. Comprehensive Home Sellers Guide Winter 2024 – In the current marketplace, the scarcity of homes for sale creates a unique opportunity for sellers. Key advantages include:

Comprehensive Home Sellers Guide Winter 2024

1. Higher Prices: The limited number of homes available often leads to higher selling prices. This can result in a greater return on your investment as the demand from buyers outpaces the supply of available homes.

2. Increased Buyer Competition: A low inventory market often leads to multiple buyers being interested in the same property. This can lead to bidding wars, where strong negotiation skills, like those of Wendy and Greg Kime, can secure the best possible outcome for the seller.

3. Better Selling Terms: In a seller’s market, homeowners have more control over the terms of the sale. This could mean more favorable conditions for the seller, such as fewer concessions to buyers and a smoother selling process.

4. Faster Sales – Lower Days On Market (DOM): With more buyers than available homes, well-priced properties can sell quickly, often receiving multiple offers. This situation can be strategically advantageous, leading to a quicker and more efficient sale process.

Comprehensive Home Sellers Guide Winter 2024

WHAT’S IN IT FOR ME? Low inventory levels present a distinct advantage for sellers. A lack of homes on the market means properties priced correctly will sell quickly, often receiving multiple offers. Comprehensive Home Sellers Guide Winter 2024 – This situation is highlighted by data from the National Association of Realtors (NAR) Confidence Index, which underscores the brisk pace of sales and the competitive nature of offers in the current market environment.

0
% of homes sold in less than 30 Days
0
offers received - on recently sold homes

“The typical home spent 52 days on the market this November . . . more than two weeks (17 days) less than the average November from 2017 to 2019. . . . as still-limited supply spurs homebuyers to act quickly."

Buyers want more options - your home may be what they're looking for

Connect with Wendy and Greg at Kime Realty to list your home at an optimal price for the current market conditions in southeast Michigan. With their expertise, your property will quickly attract interest and receive multiple offers, maximizing your sale opportunities and putting more money in your pocket.

How Much Equity Do I Have in My Current Home?

Comprehensive Home Sellers Guide Winter 2024

With mortgage rates now on a downward trend, it’s an opportune time to consider making your move. Kime Realty, renowned for its expertise in the local housing market, will guide you in leveraging current economic conditions. Your home equity, combined with the lowering rates, could provide a unique advantage in addressing any potential affordability concerns for your next venture.

WHAT IS HOME EQUITY? It refers to the portion of your home’s value that you truly own. It is calculated by subtracting any outstanding mortgage balance or loan amounts from the current market value of the property. 

Comprehensive Home Sellers Guide Winter 2024 – As a homeowner pays off more of the mortgage balance and/or the value of their home increases, the property’s equity position grows. This equity can be a significant financial resource, often used for securing loans or as a key factor in financial decisions related to your property.

Comprehensive Home Sellers Guide Winter 2024

How Does My Home Equity Help with Affordabilty?

The equity you’ve accumulated in your home can be a crucial asset when you’re planning a move. Comprehensive Home Sellers Guide Winter 2024 – When you sell your home, this accumulated equity can be a key financial resource, assisting you in purchasing your next property.

  • PAY CASH: If you’ve built significant equity in your current home over the years, you might be in a position to purchase your next house outright, without needing a mortgage. This scenario allows you to become an all-cash buyer, freeing you from concerns about borrowing and fluctuating mortgage rates. In a multiple-offer situation, cash offers win.
  • LARGER DOWN PAYMENT: The equity from your current home can significantly boost the down payment for your next purchase. This larger down payment means you’ll need to borrow less, making current mortgage rates less of a concern in your financial planning. You will also present yourself as a strong buyer to potential sellers.
Comprehensive Home Sellers Guide Winter 2024

How Do I Price My Home to Sell?

Executing a wise pricing strategy accounts for 90% of the equation when aiming for a successful home-selling experience. Setting the correct price for your house is crucial. Depend on Kime Realty to ensure it is accurately priced for the current market conditions. The price you establish for your house conveys a message to prospective buyers. Here are four suggestions:

“Your house’s market debut is your first chance to attract a buyer and it’s important to get the pricing right. If your home is overpriced, you run the risk of buyers not seeing the listing. . . . But price your house too low and you could end up leaving some serious money on the table. A bargain-basement price could also turn some buyers away, as they may wonder if there are any underlying problems with the house.”

  1. Market Research is Key – Kime Realty will thoroughly research your local, or “micro” real estate market in Southeast Michigan. Data points are ideally pulled from your specific subdivision, or from within a quarter-mile radius of your home. The secret is to review active listings, pending sales, and recently closed homes. Consider factors such as location, size, condition, and amenities. This information will help you determine a competitive price range.

2. Consult Experienced Realtors – Kime Realty is a wise choice. Its family-owned and operated model emphasizes customer commitment, collaboration, honesty, integrity, and transparency. Wendy and Greg Kime have a strong track record of success in residential real estate ensuring you have a dedicated and reliable partner to maximize your property’s value.

3. Avoid Overpricing – One of the most common mistakes is setting an inflated price. Avoid this at all costs. Overpriced homes often linger on the market and can lead to lower offers later. Be realistic about your home’s value based on the research and advice you receive. 

"Setting the price too high can discourage potential buyers from even considering a viewing. This could lead to the necessity of a price reduction in an attempt to revive interest if the property lingers on the market. However, it's worth noting that some buyers might interpret a price drop as a signal and question the reasons behind it, impacting their perception of the property."

4. Consider Market Conditions – Kime Realty will help you stay up-to-date with the current market conditions via market metrics and absorption reports. Depending on whether it’s a buyer’s or seller’s market, adjust your pricing strategy accordingly. Be prepared to be flexible if needed.

What Steps Should I Take Before I Put My House On the Market?

How Do I Pick the Right Realtor to Sell My Home?

Should I Sell My Home By Owner or Hire a Realtor?