Our Southeast Michigan real
estate market’s surges of activity are next to impossible to forecast with any
degree of precision. Since intervening events can negate even the most
well-grounded projections, it’s wise to keep in mind how tentative any reading
of the underlying tea leaves can be. Even so, last week’s disclosures provided
a high level of confidence that a market change could be on the way.
Two disparate pieces of thenational real estate jigsaw puzzle from two trustworthy sources provided the clues. The two:
From the Wall Street
Journal, a finding that “The mood among sellers…shifted in recent weeks
from apathy…to urgency.” Financial advisers and real estate agents are
reporting that their clients are showing a new sense of readiness to list their
properties. Friday’s edition provided one good reason. In a story headlined “Fed Official Favors
Aggressive Rate Increases,” the takeaway was to expect a half-point (rather
than quarter-point) Fed Funds rate increase. If area homeowners now expect a
series of dramatic mortgage rate hikes, a decrease in the number of qualified
buyers could also follow—pressuring more Southeast Michigan sellers to list
sooner rather than later.
Last Thursday, word came of
a new survey from realtor.com that could confirm the first piece of the
puzzle. It would also remove one basis for the residential market’s continuing price
rises: the inventory shortage. “Housing Inventory Turnaround Possible” published
the results of a new survey of 3,000 respondents. In it, a surprising 64% said
they intend to sell their properties this spring or summer. For a housing
market that has long been starved for inventory, a slowing of asking price
increases might be expected.
If the national picture holds true for our own Southeast Michigan real estate market, a boost in the number of new listings should spur further interest from the area’s already well-motivated homebuyers. If you are feeling a similar urge to take advantage of this spring’s active market, step one is to give me a call!