Tag Archives | Michigan Real Estate

    Michigan Real Estate news. Keeping you up to date on the latest in Michigan Real Estate including the Grand Rapids Real Estate Market and surrounding West Michigan Area. New listings, relocation information, homes, condos, land, new construction and more. Berkshire Hathaway HomeServices, brought to you by the John Rice Real Estate Team.

    Have You Outgrown Your Home?

     

    Have You Outgrown Your Home?

    Have You Outgrown Your Home? | Simplifying The Market

    It may seem hard to imagine that the home you’re in today – whether it’s your starter home or just one you’ve fallen in love with along the way – might not be your forever home.

    The good news is, it’s okay to admit if your house no longer fits your needs.

    According to the latest Home Price Insights from CoreLogic, prices have appreciated 3.5% year-over-year. At the same time, the National Association of Realtors (NAR) reports inventory has dropped 4.3% from one year ago.Have You Outgrown Your Home? | Simplifying The MarketThese two statistics are directly related to one another. As inventory has decreased and demand has increased, prices have been driven up.

    This is great news if you own a home and are thinking about selling. The equity in your house has likely risen as prices have increased. Even better is the fact that there’s a large pool of buyers out there searching for the American dream, and your home may be high on their wish list.

    Lastly, timing is key – looking to move UP during this time of year can really pay off.  Often the large house market is cooler during the winter months (not as many other buyers to compete with) while the market for your current house is often strong all year long (those looking to quite renting and purchase are less seasonal buyers.)

    Bottom Line

    If you think you’ve outgrown your home, let’s get together to discuss local market conditions and determine if now is the best time for you to sell.


    Source: Michigan Real Estate Updates

    Excellent Waterfront Opportunity: Thornapple River Waterfront Forest Hills Schools

    This is a rare opportunity offering an incredible location with sought-after Thornapple River frontage on “the pond” in Forest Hills School. With “great bones”, spacious room sizes and fabulous floor plan, this home offers the perfect opportunity to renovate the space into the home you have always dreamed of.

    140 Ft of private Thornapple River frontage. Nestled in the cove this 4 bedroom 3.5 bath home gives you all the enjoyment of being on the wide open stretch of the Thornapple River ranked top in the area for water sports, yet the location provide tranquility not found anywhere else on the river. With quality fit and finish throughout this masterfully crafted walkout ranch provides vaulted cathedral ceiling featuring beautiful wood beams, parquet floor, solid wood cabinetry, over 700sqft of Trex composite decking, 2 fireplaces, 2 docks, gorgeous river views, multi-zone heating and cooling, updated mechanicals, gorgeous landscaping, main floor master, main floor laundry, a brilliant floor plan with large spacious rooms, ample storage space, 2 wet bars, attached 3 stall garage and more. 

    What is the Best Investment for Americans?

    What is the Best Investment for Americans?

    What is the Best Investment for Americans? | Simplifying The Market

    Some are reporting that there is trepidation regarding the real estate market in the United States. Apparently, the American people are quite comfortable.

    Porch.com, a major network helping homeowners with their renovation projects, recently conducted a survey which asked Americans:

    “What do you believe is the safest investment over the next 10 years?”

    U.S. housing came in at number one, beating out other investments such as gold, stocks, bonds, and savings.

    Here is a graph showing the top five investments Americans selected:What is the Best Investment for Americans? | Simplifying The MarketThe findings of the Porch.com survey also coincide with two previous surveys done earlier this year:

    1. The Federal Reserve Bank’s 2019 Consumer Expectations Housing Survey reported that 65% of Americans believe homeownership is a good financial investment, and that the percentage has increased in each of the last four years.
    2. The Gallup survey showed that Americans have picked real estate as the “best” investment for six straight years.

    Bottom Line

    Based on all three surveys done this year, we can see that Americans still believe in homeownership as a great investment, and that feeling continues to grow.

    Source: Michigan Real Estate Updates

    Is A Bigger House Within Your Budget?

     

    Is A Bigger House Within Your Budget?

    Is A Bigger House Within Your Budget? | Simplifying The Market

    At this time of year, many families come together to celebrate the season. It’s also the time when many realize their homes are just not quite big enough to host all of their guests and loved ones. Are you one of those homeowners dreaming for a larger space to call home?

    You may have enough equity in your current home to move up.

    According to the Q3 2019 U.S. Home Equity & Underwater Report by ATTOM Data Solutions,

    “14.4 million residential properties in the United States were considered equity rich, meaning that the combined estimated amount of loans secured by those properties was 50 percent or less of their estimated market value.”

    This means that one in four of the 54 million mortgaged homes in the U.S. have at least 50% equity. If these homeowners decide to sell, they can use their equity to put toward the purchase of a new home. Maybe you’ll be one of them.

    NAR recently released their 2019 Profile of Home Buyers and Sellers showing that,

    “This year, home sellers cited that they sold their homes for a median of $60,000 more than they purchased it, up from $55,500 the year prior. This accounted for a 31 percent price gain, up from 29 percent the year before.”

    Here’s the equity gain breakdown based on the number of years these sellers lived in their homes:Is A Bigger House Within Your Budget? | Simplifying The Market

    Bottom Line

    If you’re one of the many homeowners with big dreams of owning a larger home, let’s get together. Working together finding out how much equity you have is a great first step in putting your move-up plan in motion.


    Source: Michigan Real Estate Updates

    Buyers Are Looking Now. Are You Ready to List Your Home?

     

    Buyers Are Looking Now. Are You Ready to List Your Home?

     

    Inventory on the market today is low, especially among existing homes in the entry and middle-level tiers of the market. It is hovering well below the 6-month supply typically found in a more normal market, as shown in the graph below:
    Buyers Are Looking Now. Are You Ready to List Your Home? | Simplifying The MarketWith inventory being one of the biggest housing market challenges today, finding a starter home right now isn’t easy. According to the Q3 Housing Trends Report from the National Association of Homebuilders (NAHB), 68% of those searching for a home think their search will get harder or stay about the same over the next 12 months.

    The same study reveals,

    “In Qtr3’19, buyers actively engaged in the process of buying a home are more likely to have spent at least 3 months searching (58%) than a year earlier (55%).”

     This is certainly no surprise, given the current inventory status. So, what’s the good news? The NAHB continues to say,

    “If still unable to find a home in the next few months, the next step for most long-time searchers is to continue looking for the ‘right’ home in the same preferred location (52%). The next step for 35% is to expand their search area and for 16% is to accept a smaller/older home. Only 15% will give up looking.”

    What does this mean for homeowners?

     If you’re thinking of selling your home, buyer demand is high – and those looking in your neighborhood aren’t planning on giving up anytime soon. The majority of potential buyers who are still searching for their dream home are eager, willing, and ready to buy, so maybe it’s time to list your house and make your move.

    Bottom Line

    With buyer demand as high as it is today, and inventory in the entry and middle-tier markets remaining low, it’s never been a better time to move up. Let’s get together to determine if now is your time to sell.


    Source: Michigan Real Estate Updates

    Planning on Buying a Home? Be Sure You Know Your Options.

     

    Planning on Buying a Home? Be Sure You Know Your Options.

    Planning on Buying a Home? Be Sure You Know Your Options. | Simplifying The Market

    When you’re ready to buy, you’ll need to determine if you prefer the charm of an existing home or the look and feel of a newer build. With limited existing home inventory available today, especially in the starter and middle-level markets, many buyers are considering a new home that’s recently been constructed, or they’re building the home of their dreams.

    According to Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB),

    “The second half of 2019 has seen steady gains in single-family construction, and this is mirrored by the gradual uptick in builder sentiment over the past few months.”

    This is great news for homebuyers because it means there is additional inventory coming to the market, giving buyers more choices. The most recent data from NAHB shows,

    “The inventory of new homes for sale was 321,000 in September, representing a 5.5 months’ supply. The median sales price was $299,400. The median price of a new home sale a year earlier was $328,300.”

    Another added bonus is that builders are very aware of buyer demand in this segment, so they’re now building in a price range where there are more interested buyers ($299,400 instead of $328,300). With a reduced sales price and low-interest rates, today’s buyers have strong purchasing power.

    Bottom Line

    If you’re thinking of buying a home, you may want to consider a new build to meet your family’s needs. Let’s get together to discuss the process and review what’s available in our area.


    Source: Michigan Real Estate Updates

    OPEN HOUSE: Pole Barn 1 Acre Lot w House for Sale: Caledonia 5 Bed 2.5 Bath

    OPEN HOUSE: OPEN – TODAY – SUNDAY NOV 17 2-4PM – Opportunity knocks! This Caledonia Township 2 story boasts 5 bedrooms, 2.5 baths, 2 stall attached garage, walkout basement, and huge 40 x 32 barn with 14ft entry door with raised rafters, cement floor, and 200 amp electric. Experience the quality the 60s brought to the house in the plaster walls, wood trim, wood cabinets and attention to detail. Location offers easy access to picturesque downtown Caledonia, Lepard Nature Preserve, close to area schools, and right down the road from the shopping, dining, entertainment, trail heads and more. Just south of M6 with easy access to major roads for commuting.

    4 Tips to Improve Your Home and Save on Your Energy Bill

     

    4 Tips to Improve Your Home and Save on Your Energy Bill

    4 Tips to Improve Your Home and Save on Your Energy Bill | Simplifying The Market

    By making a few key upgrades to your home, you’ll save on your utility bills and improve the energy efficiency of your home. When you’re ready to sell your house, these key features will make it even more attractive to potential buyers.

    As a homeowner, it’s important to keep your home running efficiently, not only to save money, but also to help the environment thrive. October 2nd is Energy Efficiency Day, a perfect time to think about making some key upgrades that will improve the efficiency of your home. If you’re looking to sell your house and increase the pool of potential buyers in your market, the upgrades below are truly a must.

    According with Wallet Hub,

    “In the U.S., energy costs eat between 5 and 22 percent of families’ total after-tax income.”

    What should you spend on utilities?

    Money Management says,

    “If you’re working with a budget, and trust me, you should be, your utility costs should be no more than 8-10 percent of your monthly income.”

    How can you make your home more efficient?

    EnergyEfficiencyDay.Org provides some handy tips that can help you improve the energy efficiency of your home. Here are a few simple ones to consider, and how to make them happen:

    1. Make the Switch to LED

    LEDs are a great example of how innovation and technology can make your life easier. They last at least 25 times longer and consume up to 90 percent less electricity than incandescent bulbs.

    Tip: By switching five of your home’s most frequently used bulbs with ENERGY STAR® certified LEDs, it’s possible to save $75 on energy costs annually.

    2. Seal Those Leaks

    On average, heating and cooling account for almost half of a home’s energy consumption. In fact, all the little leaks can be equivalent to leaving open a 3-foot-by-3-foot window.

    Tip: Take simple steps like caulking windows, sealing leaks around chimneys and recessed lighting, and sliding draft guards under your doors to save up to 20% on heating costs.

    3. Heat and Cool Efficiently

    Don’t waste money heating or cooling an empty home. Install a programmable thermostat and in colder weather schedule your home’s heat to lower when you are away or asleep and increase when you are returning home or waking-up. In warm weather, schedule the thermostat to raise the temperature when you are away or asleep, and lower it at other times.

    Tip: Follow the U.S. Department of Energy recommended temperatures and be energy-efficient all year. 

    4. Maintain Your HVAC System

    Make sure to clean or change your furnace filters regularly. A dirty furnace filter will slow down air flow, making the system work harder to keep you warm (or cool) and costing you more money.

    Tip: Consider getting a winter tune-up. Just as a tune-up for your car can improve your gas mileage, a semi-annual or yearly tune-up of your heating and cooling system can be vital to improve efficiency, saving you money and making your home more comfortable. 

    Bottom Line

    By making a few key upgrades to your home, you’ll save on your utility bills and improve the energy efficiency of your home. When you’re ready to sell your house, these key features will make it even more attractive to potential buyers. Let’s get together to discuss what buyers are looking for when it comes to energy efficiency options in our area.


    Source: Michigan Real Estate Updates

    Homeownership Rate Remains on the Rise

    Homeownership Rate Remains on the Rise

    Homeownership Rate Remains on the Rise | Simplifying The Market

    In the third quarter of 2019, the U.S. homeownership rate rose again, signaling another strong indicator of the current housing market.

    The U.S. Census Bureau announced,

    “The homeownership rate of 64.8 percent was not statistically different from the rate in the third quarter 2018 (64.4 percent), but was 0.7 percentage points higher than the rate in the second quarter 2019 (64.1 percent).”

    Homeownership Rate Remains on the Rise | Simplifying The MarketToday there is still a lack of inventory, particularly at the entry and middle-level segments of the market, but that is not stopping buyers from making every effort to pursue homeownership. The many financial and non-financial benefits continue to drive the American Dream and will likely do so for generations to come.

    Bottom Line

    If you’re thinking of buying a home, let’s get together to make your dream a reality.


    Source: Michigan Real Estate Updates

    Forget the Price of the Home. The Cost is What Matters.

    Forget the Price of the Home. The Cost is What Matters.

    Forget the Price of the Home. The Cost is What Matters. | Simplifying The Market

    Home buying activity (demand) is up, and the number of available listings (supply) is down. When demand outpaces supply, prices appreciate. That’s why firms are beginning to increase their projections for home price appreciation going forward. As an example, CoreLogic increased their 12-month projection for home values from 4.5% to 5.6% over the last few months.

    The reacceleration of home values will cause some to again voice concerns about affordability. Just last week, however, First American came out with a data analysis that explains how price is not the only market factor that impacts affordability. They studied prices, mortgage rates, and wages from January through August of this year. Here are their findings:

    Home Prices

    “In January 2019, a family with the median household income in the U.S. could afford to buy a $373,900 house. By August, that home had appreciated to $395,000, an increase of $21,100.”

    Mortgage Interest Rates

    “The 0.85 percentage point drop in mortgage rates from January 2019 through August 2019 increased affordability by 9.7%. That translates to a $40,200 improvement in house-buying power in just eight months.”

    Wage Growth

    “As rates have fallen in 2019, the economy has continued to perform well also, resulting in a tight labor market and wage growth. Wage growth pushes household incomes upward, which were 1.5% higher in August compared with January. The growth in household income increased consumer house-buying power by 1.5%, pushing house-buying power up an additional $5,600.”

    When all three market factors are combined, purchasing power increased by $24,500, thus making home buying more affordable, not less affordable. Here is a table that simply shows the data:Forget the Price of the Home. The Cost is What Matters. | Simplifying The Market

    Bottom Line

    In the article, Mark Fleming, Chief Economist at First American, explained it best:

    “Focusing on nominal house price changes alone as an indication of changing affordability, or even the relationship between nominal house price growth and income growth, overlooks what matters more to potential buyers – surging house-buying power driven by the dynamic duo of mortgage rates and income growth. And, we all know from experience, you buy what you can afford to pay per month.”

    Source: Michigan Real Estate Updates