What can home buyers in Michigan expect during Fall 2021? In this post, we’ll look at five home buying trends and what’s causing them.
Are you smitten with the mitten? If you’re looking for a house in Michigan this fall, you’re not alone – the state’s real estate market has been extremely active. In other words, Michigan has become a seller’s market.
Does this mean you should postpone your home-owning dreams? Not at all. Just do your homework before you start searching. To help you, we’ll discuss five key trends in the Fall 2021 Michigan housing market.
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With mortgage rates around 3 percent, it’s not surprising that many would-be homeowners are taking advantage of this historical low; it makes mortgage payments more affordable. However, the National Association of Realtors forecasts a rise to 3.5% by the end of 2021.
Also, home values are appreciating – i.e. homes are worth more than they were 3 or 5 years ago. This can make getting financing a bit trickier, so make sure you know what you can afford and what your mortgage options are.
Quarantining in place and the uncertainty of renting have moved some people to consider buying their own home. Additionally, after months of restrictions, other potential home buyers are now making appointments to view houses in person. Thus, there’s a burst of activity in Michigan’s real estate market.
2021 accelerated the trend toward home buying and borrowing. More and more home buyers are relying on digital platforms and apps to shop for homes. More and more borrowers are using apps like Mortgage 1’s Pro SNAP and Fast Pass to complete their mortgage paperwork and conduct their closings.
Most of Michigan’s population is in the southern half of the lower peninsula – specifically, in southeastern Michigan (e.g. Ann Arbor, metro Detroit, etc.) and in the Grand Rapids metro area (on the state’s southwest side). These areas have generally had the most active real estate market, thanks to all the amenities on offer.
Now, though, the state’s more rural northern counties are seeing a surge in home buying. This is driven by the availability of remote work, more affordable pricing compared to the southern parts of the state, and a desire to exit crowded cities for open spaces and smaller towns.
With demand booming – and new construction not yet catching up – Michigan homes are selling much faster; a local news station reported that the average house spends 15 fewer days on market and sells in just 19 days. This means that potential buyers have to act quickly if they see a house they love.
If you’re ready to buy a house in Michigan this fall, you’ll need to have your financing all sorted before you make an offer. As we’ve seen, houses are moving fast. If you need help determining how much mortgage you can afford, contact Mortgage 1! We’ll work with your financial goals and see what programs are available to help you afford a home.