I’m writing to share the current real estate market conditions in the Metro Detroit area. Our inventory of available homes is at a critical low right now; and with the threat of interest rates continuing to rise, this is a big problem for buyers. It should also be a clear message to homeowners considering selling their homes.
I listed a home last week on Wednesday at 9:00 A.M. It was a typical 1200 sq. ft, bungalow located in the Woodward corridor. By 12:00 P.M., there were over 50 confirmed showings. I called for “highest and best” after receiving two offers. On Friday at 5:00 P.M., I had 19 offers for my client to review and 17 were over asking price. Great news for the seller, but bad news for the 18 buyers who did not get the home.
I want everyone in the Metro Detroit area to know this is the time to sell!! If interest rates continue to rise, the pool of buyers will shrink, and home sales will be affected. As inventory rises, this will change the market to benefit buyers, and home values will drop. If you’re thinking of selling, waiting could be devastating to your bottom line. It could also be damaging to the market as a whole. If inventories rise at the same time as interest rates, it could create the atmosphere for another real estate “bubble,” and we all know how damaging that can be to the housing market.
For those who think waiting until summer to sell will help your bottom line, I’d ask you to reconsider your rationale. Do you think you will profit from waiting until the time when others are more likely to put their homes on the market? Not likely! The time to put your home on the market is now, while supply is low. Cash in now!
Sincerely, Eric Blaine
Real Estate One, 26236 Woodward Ave Royal Oak, MI 48067