We are about to head into the home buying season in Michigan and if your life allows you to get a jump on the market before school is out, you might want to begin your hunt now. As the graph from the Standard and Poors Case Shiller Index, the most followed home price index in the country demonstrates, home prices have been steadily rising since 2010 and there is no reason to expect things will change soon. The busy season for home buying is in the summer months when school aged children are on summer vacation. This in turn means as demand increases from more buyers in the marketplace, so will prices. How much prices will increase will depend on just how many families will enter the marketplace. Also keep in mind the graph below is for all of Oakland county and not all areas of the county appreciate by the same percentage. Homes in high demand areas will appreciate faster, in dollar terms, than the county as a whole.
The message is clear. If you intend to purchase a home this year, there is no time like the present in terms of affordability. The longer you wait, the higher will be the price you will need to pay for your next home.
Now someone already owning a home will be tempted to say “things will balance out because the price I receive for my existing home will also rise”. Most likely this is true, depending on where you presently live. However there is a flaw in this argument. The flaw is most buyers will be buying a more expensive house than they are selling and therefore the rise in price on the home you will be buying will most likely rise faster in dollar terms than the rise in your existing home.
The increase in price of the home being purchased will be greater than the price increase you will receive on the one you are selling.
Give us a call or text at 248-259-4187 and let us help you find the home you desire.