Saturday, June 13, 2015
Dan Elsea's Market Report
The spring rush is in full bloom with the market looking very much like last spring, only slightly less hectic. All indicators in May show a strong market as prices are up (7%), new contracts written are up (15%), the number of homes for sale is up slightly (2%) and new listings entering the market are up (4%). As sellers are noticing the strength of the market, they are responding by listing their homes. The market momentum does vary by lower, medium and upper priced categories and although they differ in strength, the lower priced markets are moving faster than upper-end markets. The trends with each price range are constant, regardless of geography (we use price segments of $0-250k, $250-500k and over $500k as a general representation of the overall metro area).
About 33% of all homes sales are selling for at or above list price, down from 39% last year. Homes that are selling in 10 days or less held steady compared to last year at 35%. This May, 59% of homes sold in 30 days or less. The upper-end market (over $500,000) as expected was a bit slower with 27% of homes selling at or above list and 22% selling in 10 days or less.
We are hearing from our sales team across all markets that the upper-end price range, particularly over $1,000,000 is slowing as the inventory rises faster than demand, with prices remaining flat. Year-to-date, there have been more sales in the $1,000,000 plus category (85 vs. 74 units in Southeast Michigan) but the pace has slowed the last 60 days.
For sellers, there is no better time to put your home on the market. Buyers need a combination of patience and quick reaction to work through competing offers. While each location inth4e area that I service may be slightly different, overall this advice holds true. It's a great time to be a seller and a somewhat frustrating time to be a buyer.Sellers need to avoid the trap of getting too greedy and overpricing their home and buyers just need patience and persistence