February 2014 Market Update

by admin on February 19, 2014

The biggest influence on real estate so far this year has been the weather, not the economy (which has cant damper on customer and showing appointments. The good news is that values continued to rise, in many cases over 10%, and the number of homes under contract remained very close to January of last year. Buyer interest remains strong, but they simply cannot get to the properties to make an offer. There is about a 30-day lag before showing appointments turn into contracts written, so we expect February sales to be slow compared to last year. Weather related slowdowns rarely cause a permanent reduction in business, it simply pushes sales forward towards the better weather months.

For Sale inventories continued their downward trend, as did the Months Supply of Inventory (MSI), falling to its lowest point (three months) in Southeast Michigan. With 75% of all buyers chasing the newest listings on the market, the MSI for most buyers is under 60 days. There are fewer multiple offers than at the peak of the market frenzy last summer, but it looks like a similar active market may be waiting for us this spring. We can expect a big jump at the first thaw, and moving up from there. We are still expecting more listings to hit the market this year than last, just delayed by the weather. This will make the summer and fall markets fast-paced, but also a little closer to normal.

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