Market Is Shifting

The first six months of this year the average selling price in greater Lansing grew 8.4% compared to the first six months of last year, with several areas growing by double digits. Unit sales declined 13% year over year as foreclosures got flushed out of the market but dollar volume grew. The absorption rate, which reflects how many months it will take to exhaust the supply of homes on the market, increased a bit to 6 months as inventory of saleable property increased seasonally. This is a shift upward from 5.2 months at the end of the first quarter. The 6 month rate represents a balance of buyer and seller advantage. This overall statistic can be misleading, however, since at some price points in some market areas the rate of absorption is well below six months and in those areas multiple offers are common and sales above asking price are common as well.

Though prices are rising, as well as mortgage interest rates, there is still a terrific opportunity for new buyers and move up buyers alike to lock in historically low rates and purchase property at prices which have not fully recovered from the peak in 2005. Mortgage financing with low down payments is readily available to employed buyers with reasonable credit scores.

This is a time, whether buying or selling, to work with a professional Realtor who understands the market dynamics, can consult on the right strategy, can negotiate favorable pricing and terms, and can facilitate the process from offer to closing.