What is a seller’s market and what is causing a house shortage in Metro Detroit?
DETROIT (FOX 2) – – Real estate is hot right now, and houses are brought to market in a matter of days.
If you’re trying to buy, you probably know the frustration of having your dream home go from “for sale” to “pending” before you even see it, or outbid your offer that was way beyond the question by any of the other 20 offers to become .
It’s definitely definitely a seller’s market, which means there are more buyers looking for homes than there are homes available.
MORE: Record-low home inventories are challenging Michigan home buyers
Several factors are causing this, including low interest rates, more young people starting house hunting and fewer older people moving.
The COVID-19 pandemic has contributed to the shortage, according to Jeanette Schneider of Remax in southeast Michigan.
“They have a lot of baby boomers who are currently homeowners and either they are a little tired of people coming and being in their homes for health reasons so they choose to just not bring it to market. Or when For boomers, if they’re on the higher end of the age spectrum, they’re definitely not interested in moving to a nursing home or assisted living, ”she said.
Additionally, homeowners who spent time improving their homes during the pandemic while stuck at home may choose not to move. Low interest rates have also resulted in homeowners refinancing their current mortgages rather than selling and buying a new home.
The same interest rates are currently attracting more people to the market, but inventory levels are low and prices in Metro Detroit are up more than 16%.
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“We had a demand. We have a demand because we have a large millennial population trying to buy their first homes, or maybe their first home. We have baby boomers who are not giving up their family home as quickly as Maybe what was past Generations were, “said Schneider. “So we have people staying in place and then there is COVID. Now you have a group of people who are like, ‘I’m not sure I want to sell my house. I’ve refinanced, I’ve got in Been doing some home improvement in the last 6-12 months. I’ll be staying here. ‘”
In a seller’s market, buyers have little time to pause before deciding to bid on a home.
If you want to buy now, Schneider said, you need to be prepared and act quickly. This includes having pre-approved a mortgage and knowing how much you can afford.
How to avoid buyer’s remorse during seller market
In Metro Detroit, property prices have risen more than 16% as inventory levels remain at all-time lows. Jeanette Schneider how to avoid buyer’s remorse in this market.