My take... on home ownership!
Home ownership is on an upward trend after hitting a 50 year low in 2016 at just 63.5%. Even though home prices continue to rise and inventory remains low, existing home sales continue to increase month over month. Home ownership is still at the foundation of the American Dream with 75% of Americans saying they would prefer to own their home rather than rent. And in a recent Gallup Survey real estate was rated as the number one preferred investment over the stock market and other investments for the fifth year straight. So what does this all mean...
If you are thinking about listing your home and upgrading to a larger home with more amenities or in a more preferred location there's no better time than the present to make your move. Your current home is likely in high demand (especially if it is in the starter home category) and will probably sell quickly with competing offers. And if you're moving up to a more expensive home in the 200K range or above the market tends to become a little less competitive as the price point increases because there are fewer buyers competing at these higher price points. While home inventories remain low overall and finding a home may require some perseverance no matter the price point, it becomes less competitive as you move up in price and tends to be more challenging at the entry level of the market.
This doesn't mean first time home buyers or those under 200K should give up or hold off on buying a home right now. Even though prices have been creeping up over the past few years, homes are still more affordable now than they have been at nearly anytime in the past 40 years when you take all factors into account including interest rates (which are still well below the 40 year average), home prices, and increasing wages/salaries in West Michigan. In this challenging market it is important for buyers to be aware of these dynamics and to know that it will take some work and perseverance to find the right house and get an accepted offer. It is also important to have a trusted agent that understands the market and will work hard for you in making your home owning dream a reality. For those that I have worked with over the past several years, thanks for trusting me with one of the most important transactions in your life. For those who I haven't yet had the opportunity to work with, I look forward to earning your trust and serving your real estate needs in the future!
With home prices rising again this year, some are concerned that we may be repeating the 2006 housing bubble that caused families so much pain when it collapsed. Today’s market is quite different than the bubble market of twelve years ago. There are four key metrics that explain why: Home Prices Mortgage Standards Mortgage Debt … Read More