August 2022 Real Estate Market Update

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You've read the national real estate news, but chances are, you're buying or selling right here in Jackson County. Ben and Mikhail explain the changing local market forces that inform how they advocate for their buyers and sellers. Because you deserve an agent you can trust.



First, our Pro Advice™ for buyers and sellers. Then the why.


Buyers

If the home you want is accurately priced for the local market, yours will likely be one of multiple offers. If, however, the home has been sitting for a few weeks, which could mean the initial list price was off, you might win the home at or under asking price. Either way, rely on your REALTOR® to help you write a winning offer.


Sellers

In the current market, the way to get top dollar for your house is a bit counter-intuitive. Until recently, sellers could push the initial list price up toward the top of the range suggested by their REALTOR®. Now that the market is moving toward more balance, Ben is instead recommending starting in the middle or lower end of your price range. A lower list price will attract more offers, and when buyers compete, they write higher-quality offers, meaning you can choose the best one. When the initial list price is too high, your house sits on the market, and buyers will offer less, knowing theirs might be your only offer.


Local Numbers Tell the Story

Why do we address buyers and sellers in every market update? Because to successfully buy or sell, you need local market knowledge, and the local market is constantly changing. Here are the latest stats informing our strategies for you:


Homes for Sale

Homes for sale shot up 40% in July, to 368. The last time Jackson, Michigan saw over 300 homes for sale was nearly two years ago!


Pending Sales

This is a measure of homes that have received an accepted offer. Jackson, Michigan pending sales are down almost 60% in July over June. Three reasons:

  • More homes are on the market

  • Homes are staying on the market longer before selling

  • Fewer people are purchasing homes

Interest Rates

The question on everyone's mind

We're hearing buyers worry about rapidly rising rates. They hesitate to sell out of fear that by the time they look to buy, interest rates will sky-rocket.


Let us offer some perspective. Interest rates are sitting at a historically low 5%. Many factors contribute to mortgage rate increases, and some are more impactful than what the Fed does. The mortgage bond market is an important influencer, and that market is strong. Think of what the Fed does as a third-tier influencer on interest rates compared with the mortgage bond market. Because the mortgage bond market is strong, and because buyers no longer need to write an offer multiple thousands of dollars over asking price, our clients should not fear. Now is a great time to get into the real estate market!


Works cited

https://www.showingtime.com/marketstats/


To help you make the most money when you sell, download our FREE Expert Home Selling Guide. It's an extensive list of improvements that attract buyers, and a list of things you can skip doing. Your home is unique, so you can also schedule a consultation with one of our listing specialists at https://www.mysmartteam.com/thinking-of-selling for a customized home selling plan.


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