Mid-Michigan Real Estate Market Heating Up

This year got off to a slower than normal start and though the sales volume in the greater Lansing market has increased about 3.7%, much of the gains came in May. 

Extremely bad weather this past winter caused many sellers to put off listing their properties until spring and some potential buyers also pushed back their home searches.

The number of foreclosures are dropping and this coupled with the delay of listings has caused the inventory of property for sale to be far below historical norms. This has also put pressure on the listings that are for sale and average selling prices have risen markedly.

Why do we think  greater Lansing real estate sales in 2014  will  be strong?

• Buyer confidence in the local housing market is strong and traffic to the major search sites and open houses is very high. Potential buyers who had delayed their search have seen prices rise and now are out in droves.

• Mortgage interest rates, though higher than last year, have stalled at an historically low rate and recently drifted a bit lower. Lenders have also relaxed lending standards making a wide variety of product available to borrowers with FICO scores as little as 620. (See May 22nd blog post)

• The popularity of real estate investment property has remained strong especially in light of a frothy stock market. Cash offers are common.

• Foreclosures and short sales are declining and home owners who had been a negative equity situation can now move on with their lives including the purchase of replacement homes.

• The local economy is strong and consumer confidence is growing and new household formations normally follow.

All the indicators we see point to a very healthy real estate market in greater Lansing the remainder of this year with volume and selling prices growing at a much more rapid pace.

Now may be a great time to make your move.