How Do Current Inventory Levels Affect Home Sellers?

Housing inventory levels are at historic lows in our market, which creates a unique opportunity for home sellers this year.

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Housing inventory levels have continued to drop over the past 12 months. In fact, we have historically low inventory levels right now.

Five to seven months of inventory is considered a neutral or balanced market. For the past 60 days, we have had less than four months of inventory available on the market. 

If you compare the fourth quarter of 2016 to the fourth quarter of 2015, inventory is down across the board. We need as many home sellers as possible to enter the market now. Most homeowners want to wait another 60 to 90 days to put their homes on the market. However, if you want to wait until spring, you need to realize that your competition is waiting to do the same thing.

Every year, the second quarter gets the most listings on the market. If you wait until April, May, or June to list your house, then you will be on the market at the same time as everyone else.

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You should put your home on the market before the second quarter.

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Right now, homes are selling in an average of 55 days. The average for our team is 45 days. You can definitely sell your house now before the rest of the competition enters the market.

Even Jonathan Smoke, the chief economist at Realtor.com, says, “In most markets, most years, the optimal time to list is in the spring so that the maximum number of potential buyers view the home. This year, the conventional wisdom of buying and selling may need to change. Inventory levels at the beginning of 2017 are at multi-year lows. Sellers now face very little competition.”

If a chief economist says that you don’t want to wait until the second quarter, then you know that you should get your house on the market as quickly as possible.

If you have any other questions about housing inventory or if you are interested in selling your home, give us a call or send us an email. We would be happy to help you!

How Much Do You Really Need for a Down Payment?

How much do you really need to put down to buy a house? The majority of people falsely think you need a lot more than you really do.

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How much money do you need for a down payment when buying a home?

A recent article in the USA Today reported that 69% of consumers are afraid of not having enough cash for a down payment to buy a house. It's the same reason many people don't move from their apartment or rental home. The Aspiring Home Buyers Profile recently addressed this issue too, finding that 39% of consumers think they need at least 20% down to buy a house. Another 26% think you need at least 15% down.

You don't need that much, though, because you can get financing for as little as 3% down. If you qualify for a VA or USDA loan, you can buy a home for 0% down, but many consumers aren't aware.

The Aspiring Home Buyers Profile also proposed the same question in a survey to homeowners. How much of a down payment do they think is needed? You might be surprised to hear, but 30% of current homeowners think you need 20% down to buy a home. Another 35% believe you need at least 15% to 20% down. 

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More than half of all homeowners think you need at least 15% down to buy a home.

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If you've wondered why you haven't seen many 'for sale' signs in your neighborhood or why housing inventory is so low, it's simple. Many current homeowners don't know that they can move up and make the jump to their dream home without that 20% down payment. The same study found that the median down payment for first-time homebuyers was only 6% for three straight years. The median down payment for repeat buyers in that same time period was 14%.

Non-homeowners and homeowners alike thinking they do more than they actually need for a down payment is holding back listing inventory in southeastern Michigan. Last year at this time we had more than 27,000 homes on the market, and currently, we're down to 16,000. That's a 39% drop inventory, so if you're thinking about selling your house, now is a great time.

If you have any other questions about down payments or you're thinking about selling your house, give me a call or send me an email. I'd be glad to help.

Think You’re the Winner of Our iPad Giveaway?

Today we're excited to announce the winner of our third annual iPad giveaway. Think you might be a winner?

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Today we're thrilled to announce the winner of our third annual iPad giveaway!

Thanks to your support and referrals, our business was up 39.6% last year. Thank you so much for your support!

Without further ado, the winner is...

Melanie Hearsch!

Thanks for checking in today. If you weren't our lucky winner, stick around for another opportunity to win in the future.

As always, if you have any questions for us or you're thinking about buying or selling a home, you can give us a call or send us an email any time. We look forward to hearing from you!