Unlocking Home Buying Opportunities in Metro Detroit has never been more promising. Discover how recent market shifts can turn your homebuying dreams into reality in 2024.
Unlocking Home Buying Opportunities in Metro Detroit
The past year has undeniably been tough for homebuyers in Metro Detroit. If You’ve started the process of searching for a home and then decided to pause, you’re not alone. A Bright MLS study identified some key reasons buyers held off in late 2023 and early 2024:
- Limited options within their budget
- Unsuccessful offers or competitive difficulties
- Difficulty finding the right home
If any of these resonate with you, there’s good news. The housing market is transitioning in the second half of 2024. Here are four compelling reasons why now might be the ideal time to resume your home search.
The Supply of Homes In Metro Detroit Is Growing
Let’s unlock home buying opportunity #1. One of the most notable changes this year is the increase in the months’ supply of homes for sale. Data from the National Association of Realtors (NAR) highlights a steady growth in inventory throughout 2024:
This graph illustrates the rising supply of existing homes, showcasing a clear upward trend. With more homes available, your chances of finding a property that meets your needs and preferences improve significantly. This is a significant development for those who paused their search due to a lack of suitable options.
Macomb and Oakland County Month Supply of Homes on Market
More New Home Construction In Metro Detroit
Unlocking Home Buying Opportunities #2: In addition to existing homes, there’s also a surge in new home construction. Builders focus on creating smaller, more affordable homes to meet current market demands, addressing the longstanding issue of housing undersupply. Data from the Census and NAR indicate that one in three homes on the market is newly built:
If you haven’t considered newly built homes, you might miss out on a third of the available options. Plus, many builders offer incentives, such as mortgage rate buy-downs, making finding a home within your budget more manageable.
Do you want to explore new construction homes in Wayne, Oakland, and Macomb Counties directly from the Multiple Listing Service? Here’s your chance! ✨⤵️
Less Buyer Competition for Now
Unlocking Home Buying Competition #3: With mortgage rates hovering around 7%, buyer demand isn’t as intense as it once was. In July, that changed. For the second month in a row, inflation numbers are down, and mortgage rates have also decreased. Freddie Mac’s PMMS survey of loans for the week averaged 6.77%. To keep up to date and learn how to predict mortgage rates, visit ” Today’s Mortgage Rates: What’s driving the change” ⤵️
If you don’t know, mortgage rates are determined by Wall Street, and the Fed sets policy. Every Sunday night I post an update of the weekly mortgage rate trends. Next, I review what economic news is coming up next week that could cause mortgage rates to go up or down. Finally, I’ll show you how to predict where they could head into the following week. To keep up to date, visit “Navigating Mortgage Rates: Weekly Update and Predictions. You can also request the Real Estate Insider newsletter. Based on the economic trends and a good chance the Fed will lower interest rates, affecting the Wall Street bond and securities market, the mortgage rates base could quickly decline to 6.5%.
Change in the Competition Could Change Quickly
Many homebuyers like yourself have been sitting on the fence, waiting for mortgage rates to drop. If we have Supply (fewer homes on the market) and Demand (more buyers want to buy), we could see home prices increase. It will be essential to watch the trends and remember that the numbers represent your money. I would recommend “Know Your Home Purchasing Power.” I walk you through the process of creating a monthly budget based on facts. The key is keeping up to date.
Home Prices Growth Slowed Down ~ Not Stopped.
Home prices are also beginning to moderate, a welcome change after years of rapid appreciation:
This moderation results from increased supply and eased demand, leading to slower price rises. While prices aren’t falling, they’re increasing more easily. The average forecast for home price appreciation in 2024 is positive growth around 3% to 5%, aligning more closely with historical norms. This trend suggests you won’t face the steep price hikes of previous years. Keep in mind the above graph is on a national level. You can access local data from the Multiple Listing Service on this website for Metro Detroit and the state as well.
Macomb and Oakland County Home Price Trends
Median and Average Year to Date
The next step is to view the home prices and real estate trends by city. This is where the magic🪄 really happens.
Macomb County Home Prices and Trends by City
Oakland County Home Prices and Trends by City
Unlocking Home Buying Opportunities in Front of You
If you’re ready and able to buy, the second half of 2024 presents a potentially easier market to navigate. While challenges remain, significant hurdles are easing. Waiting, however, carries risks. As more buyers recognize market improvements, competition will increase. Additionally, more buyers will re-enter the market if mortgage rates decrease as predicted. Acting now lets you take advantage of current conditions and get ahead of future buyers.
Understand the Market Before You Buy! Let’s Connect ⤵️
Boy, that’s a lot to pack in.🤩 Ready to explore the market and find your perfect home in Metro Detroit? Schedule a Zoom call with me, and we’ll review the sold data, understand your purchasing power and property taxes, and answer your questions and concerns. I’ll share my screen to give you a clear view of the market insights and help you make informed decisions.
Final Thoughts ~ Your Home Buying Opportunities
If you put your home buying dreams on hold, now might be the time to jump back in. Let’s connect to discuss the opportunities available in today’s market and help you find your perfect home.⤴️
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