Due to a lack of inventory, home prices are increasing again.
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Due to lack of inventory, home prices are increasing again. This year, prices in the Midwest are up 5.7%. They are also up across the board over the entire U.S.
For homes priced under $100,000, sales have dropped by 8.7%. That’s because there aren’t as many short sales and foreclosures as there used to be. Five years ago, short sales and foreclosures made up 40% of the market; now, distressed sales make up less than 8% of the market. In every other price point of the market, though, sales are up.
The latest Case-Shiller report confirms that we are not headed toward another housing bubble and that the numbers remain strong. Every month since last September, prices are 5% higher than they were in 2015. That is a good appreciation rate.
Will prices continue to rise? According to CoreLogic, home values in the state of Michigan should go up 6.4%, while prices across the country will continue to rise.
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Prices across the country should continue to rise.
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However, since home values have been appreciating so well, many home sellers are facing challenges with the appraisal. Compared to homeowner estimates, appraised home values are off by 2% for a $250,000 house. That means appraisals are coming in $5,000 short. This has been a common issue with many of our deals over the past 90 days, so it’s definitely something to be aware of.
If you have any questions about home prices or current market conditions, just give me a call or send me an email. I would be happy to help you!
