If you’ve been toying with the idea of selling your house, now is a great time as a shortage of listings has created a seller’s market.
The caveat is that you’ll pay dearly for your next house, and it may be hard to find one that suits your needs.
Listings are down and inventory is low,” said Realtor Justin Wohlfert via email. “There are more buyers out there than ever before. Many of them are pre-approved, and realtors are having a hard time finding a home for them.”
In “normal” times it’s common for agents representing buyers to negotiate the price down, but that isn’t happening now. “To play the negotiating game like we used to do is out the window,” said Realtor Melissa Allen, adding that in her 20 years in the business she has only seen one seller’s market that comes close to the current one.
Wohlfert describes a new listing in Alma. “The first three days on the market I had eight showings. Ten years ago I might have had five showings in six months. Foreclosures were driving the market. Now foreclosures are rare. Most of the inventory for sale now have an accepted offer in the first week of listing.”
According to the Central Michigan Association of Realtors, the average sale price of houses in central Michigan was $69,278 in May 2008 and $73,419 in May 2009.
Then in May 2017 the average sale price reached $124,490. Last May it was $127,078.
So yes, its a seller’s market,” Wohlfert said. “Sale prices are way up. Homes are up in value. And a lot of that is simply because of the lack of inventory.”