Metro Detroit real estate Aug 2016

February 9, 2018

ere is my Metro Detroit real estate update for the end of summer in August 2016. It has been a great year for Metro Detroit real estate sellers. It has been a strong sellers market since early April. Most homes were getting quite a few showings, multiple offers, and some even got over list offers. What was surprising is most communities shared in the rise in homes prices. Only communities like Detroit, Pontiac, and Inkster did not see the big real estate price increases.

The hottest price range in our market was the under $250,000. So that tells me that many first time home buyers were taking advantage of the low interest rates to get into their first homes. I sold homes in Southfield, Warren, Hazel Park, and Lincoln Park this year. Every single one of my sellers homes had twenty or more showings on the home. One of them had over 30 showings in two days!

All of these homes had 9 or more offers on them. I expected that on the homes I sold in Royal Oak and Livonia because home buyers seem to think Royal Oak and Livonia are more desirable. I had one home in Royal Oak that I sold that the mortgage deal fell apart. So it was listed twice. The first time we had 14 offers and the second time we had 10 offers. 24 different buyers that wanted the home.

It was not unusual to have to bid close to list price or over to get a home. Here are homes that sold in Livonia in the $200-$250,000 range in the last couple of months.

Address List Price Close PricE
  11310 BLACKBURN ST $195,000 $200,000
  37612 N LAUREL PARK DRV $200,000 $200,000
  14923 BASSETT ST $197,400 $200,000
  16842 PENN $188,000 $200,000
  9309 NEWBURGH RD $204,900 $202,000
  35042 ELMIRA ST $209,900 $206,000
  14220 YALE ST $209,000 $209,000
  29813 LINDA ST $210,000 $210,000
  36271 PICKFORD ST $210,000 $210,000
  14506 INGRAM ST $224,900 $215,000
  14269 BERWICK ST $215,000 $215,000
  32245 SCONE ST $224,888 $220,000
  34020 ANGELINE AVE $219,900 $220,000
  33028 Barkley ST $224,900 $220,000
  37305 BLAKE $240,000 $230,000
  9553 LAUREL $225,000 $230,000
  15460 SUSANNA CIR $229,900 $230,000
  15335 ASHURST $230,000 $232,000
  15261 RIVERSIDE ST $232,900 $232,000
  15605 OPORTO ST $234,900 $234,900
  15537 PENN $239,900 $237,500
  18707 FILMORE ST $250,000 $240,000
  34608 PINEHURST DR $249,000 $240,000
  37619 SUMMERS ST $240,000 $240,000
  36721 SUNNYDALE ST $239,900 $243,000

This is just one city. So if you are a home buyer you need to get the latest information on recent solds from your realtor. If the home is new to the market in a city like Livonia then look at the spread of the list and sold prices.

I recently had a young Livonia home buyer that kept on losing houses because she was putting in offers that were $10,000 to $15,000 below listing price. I sent her the info on sold prices. She wouldn’t listen. She lost 3 houses. The houses were sold to somebody else. So she is onto another realtor, I heard that she lost two more houses. Until she gets smart and bids close to list price she most likely is not going to get a home. She may end up with a 3rd realtor.

Unfortunately this is a common scenario. Nobody wants to pay top dollar. Everybody wants a deal. However in 2016 if you want a home you were going to have to pay top price. There are not deals out there like there were 6 years ago. As we say what happens with most buyers is that they first listen to family and friends. They bid low and they lose the house. So they do it again because they think it is a fluke that they didn’t get it.

Then they start listening to the agent when they hear there are multiple offers and that the house sold much higher than their bid. So it is usually the 3rd or 4th bid before the buyer gets smart and starts bidding close to the list price. The sooner the buyer accepts the market conditions the sooner they are going to win a bid. If the buyer sticks to their friends advice of getting a bargain and getting a low price they are going to be looking for a while in 2016.

It has slowed down the last 2 weeks with everybody getting ready for school and getting the last vacations in.