2017 Was a Very Good Year in Real Estate
BY NANCY BIERENGA, REALTOR®, E-PRO, ABR, éLAN REALTY, PAST PRESIDENT, WEST MICHIGAN LAKESHORE ASSOCIATION OF REALTORS
Looking back on 2017, the first thing that stands out is the fact that home values in Muskegon County rose about 12%. The average days on the market dropped 34.3% from the same time in 2016. At the time of this writing there is only a 3.49 month inventory on the market.
Market conditions vary by neighborhood, or in some cases, even by block of homes. The figures in this article are for Muskegon County as a whole.
There are currently 476 homes on the market. In the past year we have sold 2,476 (to the middle of December). The average sold price was $141,001 and the homes were on the market (from listing to sold) for an average of 66 days. Thanks to the low inventory, homes sold for an average of 97.5% of the listed price.
What do these numbers mean for you? Whenever the inventory falls below six months’ supply, it shows a seller’s market. The selling price versus the listed price is so high because the rules of Supply and Demand dictate that sellers are able to get nearly what they’re asking because there are more buyers than sellers. Another indication of a very strong seller’s market.
This very nice, two bedroom plus study condo with two full bathrooms had all new flooring two years ago and features an attached garage! Contact your Buyer's Agent today to see it for yourself.
The Federal Reserve has indicated that they will be raising rates during the coming year, but even with a moderate increase we are in a prolonged period of historically low long-term interest rates. That makes it a great time to buy if you find a home that meets your needs.
Even though it’s a seller’s market right now, the cost of waiting to purchase a new home could be costly. We have no real idea how long the seller’s market will persist. At the same time, an increase of .5% in the interest rate coupled with a 5% (note we saw 12% last year) would add about $163 to the monthly payment required to purchase a home listed at $250,000 today. That would add up to about $58,500 over 30 years! Today is a great day to buy a new home and a great time to sell your current home as well.
Here’s to 2018 continuing the strong Real Estate market!
Nancy Bierenga, of élan Realty, is past president of the West Michigan Lakeshore Association of REALTORS®, a member of the National, Michigan, and West Michigan Lakeshore Associations of REALTORS®, and the Greater Muskegon Woman's Club. She is an Accredited Buyer's Representative, a Certified e-Pro REALTOR®, and a Certified Fair Housing REALTOR®. She and husband Robert have lived in Muskegon since 1996. Phone Nancy at (231) 730-0887, email Nancy@HousesByNancy.com, stop by élan Realty's office at 4075 Airline Rd., Muskegon or visit the élan Realty on Facebook here.