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Ben and Mikhail explain how the economy is affecting Jackson, Michigan home buyers and sellers, and then pinpoint how you can get the most value from your biggest investment.
Interest Rates
Due to inflationary pressure, rates have steadily risen each month in 2022. At the Federal Reserve's meeting next week, another rate hike is possible. But it's important to remember that while rates are higher than in recent past, they are still below the 30-year historical average.
Inventory
Inventory is the total number of homes available for purchase. In Jackson, Michigan, that number increased by about 50% in June over May. New listings in June remained almost equal to May, at just over 200. The difference is that more homes are sitting on the market.
One way to understand this is the showings-to-pending rates. In May, on average, Jackson, Michigan homes listed for sale were getting 11 showings before an accepted offer. In June, the average dropped to 8 showings. That's because some buyers are responding to inflation and higher interest rates by pausing their plans to purchase. That leaves fewer buyers per available listing.
What kind of buyers are still out there? Those who can absorb the current inflation and higher interest rates. So they're well-qualified, and that's not all. Most have been looking for weeks, so they can tell the difference between a good value and a lower quality home.
What is a quality home, one that will attract a quality offer? If you're selling, your home needs to be well-maintained and well-presented because current buyers have a more accurate understanding of local housing value. If you want a quality offer in a reasonable amount of time, work with a REALTOR® who has an effective listing plan and local knowledge so that you price your home to sell for top dollar. That's our goal: We work hard to get you every penny from your investment.
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.
Works cited
https://www.showingtime.com/marketstats/
https://www.valuepenguin.com/mortgages/historical-mortgage-rates
https://www.bankrate.com/mortgages/will-mortgage-rates-go-up-in-july-2022/
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