Understanding Southeast Michigan Real Estate Market Conditions
Because the southeast Michigan real estate market is always changing, it is important home sellers have a solid understanding and knowledge of the market conditions you may encounter when selling your property. Plus, it helps to understand how market conditions can affect your position as a seller. Kime Realty will explain the market conditions at the time you are considering selling your home and advise you as to the perfect marketing strategy to get your home sold for the most amount of money, in the least amount of time, and with minimal stress.
Buyer's Market
In a buyer’s market, there are more southeast Michigan homes for sale than there are buyers. With that said, here are more characteristics of a buyer’s market:
- High inventory of homes for sale. (Greater than 7 months supply of inventory)
- Few buyers compared to availability.
- Homes tend to remain on the market for a longer period of time.
- Prices tend to drop if no offers are received.
- Buyers have more time to look for a home.
- Because of market conditions, it’s not uncommon for buyers to be able to gain the upper hand in price negotiations.
Seller's Market
The number of buyers wanting homes exceeds the supply or number of homes on the market. Characteristics of a seller’s market include:
- Smaller inventory of homes. (Less than 5 months supply of inventory)
- Many buyers. Multiple offers frequently received by sellers.
- Homes sell quickly. Buyers need to be decisive and act with a sense of urgency.
- Prices usually increase.
- May have to pay more. Escalation clauses are frequently used.
- Contingencies, such as inspection and appraisal, are often times waived. Conditional offers may be rejected.
Balanced Market
The number of homes on the market during a balanced market is equal to the demand or number of buyers. Other characteristics of a balanced real estate market include:
- Demand equals supply.
- Sellers accept fair and reasonable offers, ranging from 92% to 100% of original list price.
- Homes sell within an acceptable time period…typically
- Prices generally stable. Appreciation levels ranging from 2-4%.
- More relaxed atmosphere for buyers.
- Reasonable number of homes to choose from.
- Inventory level is 5-7 months based on absorption rates.
Pricing Your Southeast Michigan Home for Any Market Condition
Pricing your southeast Michigan home wisely is critical in a number of ways. Properly pricing your property helps attract more buyers with stronger offers sooner. Remember, it is our goal to secure the most money for your southeast Michigan home in a timely manner. It all begins with accurate pricing! To find out what your home is worth, contact us today.