Buyers Frustrated with Low Inventory

It has become increasingly obvious that the upsurge in home buyers has led to a deficit of desirable homes on the market. Low home prices combined with dropping mortgage rates have motivated many people back into the buyer's market; unfortunately, homeowners have not followed suit, creating a gap between what buyers want and what's available for purchase.

According to a recent survey by real estate brokerage Redfin, many buyers are frustrated with the lack of available properties(Wall Street Journal). They are ready to buy, have their financing approved, but simply can't find the home that they want. Of the 1,200 home buyers surveyed, 6 out of 10 people stated low inventory as their primary concern in purchasing a home right now. It is not simply an issue of buyers being unhappy with the options; compared to last year, there are 20% fewer homes currently for sale. Additionally, 7 out of every 10 buyers faced competing offers when they put offers in on homes that they were interested in.

Although buyers are feeling stressed over the changing housing market, sellers are beginning to celebrate. Not only are their homes selling quickly, they're often receiving multiple offers for full asking prices. Basic supply and demand helps sellers realize that housing prices are starting to rise, prompting more of them to be open to listing their houses for sale now.

This housing draught is also what gave rise to the Shadow Market, which I blogged about in April of this year. The shadow market continues to exist as motivated buyers request that there real estate agents contact non-listed houses to find homeowners who might consider selling if the price is right. For many home owners, the incentives to sell as the market crashed simply did not exist. From buyer's struggling to get financing to low home prices, if a home owner didn't have to sell, they didn't. However, the market is an ever-changing entity and already we can see sellers responding to the influx of buyer's searching for their dream homes.

If you live in the East Lansing or Greater Lansing areas of Michigan and have been considering placing your home on the market, now is a great time. As an East Lansing realtor, I can help match you with a buyer quickly. Likewise, if you're intending to buy a home in East Lansing or the Lansing area, please get in touch with me at MyRealtorRob.

Michigan's Positive Real Estate Trends

Anyone who has been living in Michigan during the market fluctuations of the previous several years, can take heart knowing that we appear to be coming out of a pretty hefty slump. Across the state, housing prices are on the rise, buyers are buying and sellers are beginning to recoup some their housing investments. As a realtor in East Lansing, Okemos and the Greater Lansing areas, I have celebrated this upswing as both a real estate professional and simply as a Michigan resident. It's rather frustrating to sell houses when the public opinion keeps veering towards doom and gloom, which is why it's so wonderful to offer news of the positive sort.

On a personal level, I recently received a request from a buyer to view a home for the second time, with the intention of making an offer. However, when I went to schedule the showing the home had already sold! This is the second time that this has happened to me in the last two weeks and few signs are more clear that a market is turning than houses disappearing off the market before an interested buyer can get an offer in.

According to a Michigan University finance and real estate professor, the risk of home loan defaults is at a seven year low (IQRealEstate). This he contributes to several factors, including stabilizing home prices, record low interest rates and an improving economy.

A recent Reuters.com article states that U.S. housing sales jumped in February, an 11 percent increase over the same month last year and prices rose. The article cites both Realtors and builders who are commenting on the notable change in home sales, but is careful to warn that the recovery will be slow and often spotted with minor setbacks such as increased home foreclosures.

If you're a buyer searching for a new home in the East Lansing or Lansing areas or are thinking about selling your home, please contact me at MyRealtorRob. As a seasoned East Lansing realtor, I can offer you a quick market analysis so that you can understand what your home is worth and provide you with detailed neighborhood information and other valuable home buying and selling tools.