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|
|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|
|15460 SUSANNA CIR||$229,900||$230,000|
|15261 RIVERSIDE ST||$232,900||$232,000|
|15605 OPORTO ST||$234,900||$234,900|
|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.