Key Takeaways From 2018 Q3 Greater Lansing Housing Market Statistics
As 2018 comes to a close, the third quarter data from the Greater Lansing housing market statistics appear, revealing some interesting trends over the year. These trends may continue into Q4 of 2018 and the start of 2019, giving prospective home buyers and home sellers a glimpse into what they can expect. Every housing market is different, with a different timeline, supply and demand patterns, price ranges, and many other factors. These market statistics include data only from the Greater Lansing area, including Lansing, East Lansing, Okemos, Waverley and surrounding towns, which provides unique insight into this area by itself.
Key Takeaways From 2018 Q3 Greater Lansing Housing Market Statistics
Homes Sold Remains Mostly Constant
Though home buying patterns in individual areas seen changes, total homes sold overall in the Greater Lansing area remains mostly constant, with only a negligible decline from this time last year. Though this varies somewhat between Greater Lansing neighborhoods, this indicates that the competitive sellers market is still in full swing in this area.
Some Home Buyers Priced Out of the Market
Though the total homes sold remains mostly unchanged, the average sales price has risen nearly 6% across Greater Lansing, significantly higher than the current inflation rate. This indicates that demand is increasing, driving prices higher, however some prospective homebuyers have been priced out of the market, so total homes sold have not increased. Additionally, current home owners may be concerned about the difficulty they may face finding a new home after selling their current one, and may be holding off.
New Housing Inventory Beginning
The monthly absorption rate—the rate at which the current available homes for sale is decreasing—has declined from this time last year. This is good news for some prospective homebuyers, as it indicates that new home constructions may finally be taking some pressure off the pool of existing homes. However, new construction tends to favor second-time or move-up buyers, so the housing inventory may remain low for first-time or starter home buyers.
East Side Prices Out Buyers
While housing purchases in Lansing and most other areas remained mostly the same or increased, east side suburbs saw declines in total home purchases throughout the year. Two east side neighborhoods, Haslett and Williamston, were among the few in Greater Lansing to see declines in sale price as well. Since the average home sale price in these two areas is high compared to other Greater Lansing neighborhoods, this drop most likely indicates that prices recently increased too much too fast, and are leveling off to competitive levels again. This may help these areas continue to expand in the months and years to come.
Northern Rural Areas Are Popular
Several smaller towns some distance north of Lansing are seeing more growth. This indicates either that prices are more competitive in this area for home buyers, home buyers are seeking more peace and quiet, or perhaps both. Dewitt, St. Johns, Bath and Laingsburg, all located north of Lansing or East Lansing, saw an increase in home purchases over the last year. Total homes sold in Bath and St. Johns both increased significantly, at 21.1% and 8.6%, respectively.
Home Values Rising
In 14 of the 16 areas included in the Greater Lansing home sales statistics, prices are rising, and most are rising well over the inflation rate. The neighborhood seeing the highest average sale price increase was the small town of Perry, with an average 36.6% home sale price increase from this time last year. This is good news for homeowners, who will be building equity during this time, as well as those considering selling, as they will most likely see a significant return on their investment.
Customers Pleased with Berkshire Hathaway HomeServices Tomie Raines Realtors®
Over 97% of customers reported that they were “satisfied” or “very satisfied” with their experience with Tomie Raines Realtors®. In a competitive market like the one currently in the Greater Lansing area, home buyers need experienced real estate agents they can trust. In this climate, even more than usual, working with a savvy and experienced real estate agent gives buyers a substantial advantage.
Overall, the 2018 Q3 Greater Lansing housing market statistics indicate a competitive seller’s market persists throughout the area. Though some differences exist between neighborhoods, it’s hard to go wrong when it comes to investing in the current Greater Lansing real estate market. Home prices are up and rising, which is good for sellers, but may make home buying more complicated. New home builds are likely to take some pressure off the market in the future, but it will take some more time to really see see these results. To get the home you want in this competitive market and to make sure you are getting the most for your current home, it’s essential to work with an experienced Realtor.