Category Archives: Market Update

2020 End-of-Year Sales Statistics

Current Lansing Area Sales Statistics, Market Update

In spite of COVID-19 precautions, the number of sold homes in 2020 was up 185 units or 2.7%.   Fourth quarter 2020 sales statistics show that the average sales price of Lansing area homes has increased from $179,634 at the end of December 2019 to $195,518 on December 31, 2020.  This 8.8% increase represents a dollar value of $15,884, with average selling time of less than one month.   These figures include all sales through the Greater Lansing Association of Realtors.

Check out our Fourth Quarter Sales Statistics Link (below) for an update of sales activity by community. (Please note that pending sales, properties under contract that have not yet closed, are not factored into these statistics.)

Fourth Quarter 2020 Sales Statistics


The Market  – January 24, 2021
– The seller’s market continues as we enter 2021.
– There are only 491 available homes for sale in the five county greater Lansing area.
– 270 homes have accepted offers, awaiting inspections .
– 374 home are listed as Pending,  meaning they have passed inspection are waiting
on a  closing date.

 

 

Should You Put Your Home on the Market in Winter?

Market Update, Seller Information

If you are a home seller, you may be wondering whether to put your home on the market  during the winter months or wait for spring 2021.  There are arguments for both sides, but the National Association of REALTORS® predicts that this “will be one of the best winter sales years ever.”

6900083.largeThere is currently a perfect storm of low mortgage interest rates, low housing inventory, and a pandemic that’s causing many homebuyers to work from home and virtually school their children. They’re rethinking how and where they want to live. Since most homebuyers purchase homes to secure more living space, that’s true now more than ever.

Buyers are looking for advantages because low inventories and rising prices favor sellers.  Many will look at homes in the winter because the interest rates on the 30-year fixed-rate are below three percent for those with good credit. There’s less competition from other buyers, which means they may actually win in a bidding war.

The inventory of homes is historically low and housing demand is likely to increase now that a COVID-19 vaccine is on the horizon.  Homebuyers should prepare for what could possibly be the most competitive spring homebuying season in years.

Lansing Area Real Estate Numbers – November Update

Market Update

The State of Michigan “Three Week Pause” order for November 15 through December 8 suspended open houses but has not interrupted real estate sales.  It remains an active seller’s market with enthusiastic buyers taking advantage of exceptionally low priced mortgage money.

Mortgage Rates at 2.72%
2.72% is the current 30 year interest rate going into December.  This monthly mortgage payment will cost a buyer $4.07 per each thousand of borrowed money.

Sales and Inventory of Residential Homes as of November 29th
713 currently active listings. (Entire Lansing area market area)
338 homes with accepted offers.
501 homes pending a closing date.
6,304 homes have closed since January 1, 2020.

By the Numbers…Lansing Area Real Estate

Current Lansing Area Sales Statistics, Market Update

After a dramatic plunge during the spring shutdowns, the rate of home sales is expected to surpass 2019 levels in the final months of 2020.  Despite Covid-19 and high unemployment, home prices are rising, with multiple offers common on many properties

Mortgage Rates remain below 3%
2.8% is the current 30 year interest rate as we conclude the month of October.  This monthly mortgage payment will cost a buyer $4.15 per each thousand of borrowed money.

Sales and Inventory of Residential Homes as of October 27th
747 currently active listings.
499 homes with accepted offers.
588 homes pending a closing date.
5503 homes have closed since January 1, 2020.

Average Selling Time…1.5 months
Reasonably priced homes have been receiving multiple offers within the first two days of being listed*.  Upon acceptance of an offer, the home’s status is changed to Active/Back up or Contingent.  A home with an accepted offer is not considered to be “under contract” until the inspection contingencies are removed.  This can be 10 – 15 days later.  In addition a  home is not considered to be “sold” until it closes.

*The number of days it takes to receive an acceptable offer will vary according to location, asking price and the condition of the home.

 

Lansing Area Home Values Continue to Rise

Market Update

Third quarter 2020 sales statistics show that the average sales price of Lansing area homes has increased from $180,537 at the end of September 2019 to $194,103 in September 2020.  This 7.5% increase represents a dollar value of $13,566 with average selling time reduced to 1.3 months. These figures include all sales through the Greater Lansing Association of Realtors.

Check out our Third Quarter Sales Statistics Link (below) for an update of sales activity by community. (Please note that pending sales, properties under contract that have not yet closed, are not factored into these statistics.)

Third Quarter 2020 Sales Statistics

Due to COVID-19 precautions, the number of sold homes was down 311 units or -5.9%. However, the seller’s market continues as we enter the last quarter of 2020.

 

What Post-Covid Buyers are Seeking in Their Next Home

Buyer Information, Market Update, Seller Information

houseDo homebuyers want the same things in their next home as they did before the COVID pandemic?  In some ways, yes, and in others, no. According to the latest summer Realtor.com survey, post-COVID homebuyers are willing to spend more money on a home; have saved more money toward a down payment as they sheltered in place;  and plan to buy a home sooner than they did in the spring of 2020.

A greater majority of homebuyers surveyed also said they want a three-bedroom home, with two bathrooms, an updated kitchen, and a garage. In a comparison of surveys conducted in both the spring and summer, a notable share of homebuyers wanting move-in ready homes has gone up 10 percent and six percent more buyers are willing to take on longer commutes to get the home they want. In addition, low mortgage interest rates, combined with additional personal savings, are making conditions attractive for them to buy a larger home in a nicer neighborhood.

Six percent fewer homebuyers plan to put more earnest money down, plan to offer above listing price, or offer all cash. Three percent plan to put down more than a 20 percent down-payment.

The trend in these numbers appears to point toward less willingness on the part of homebuyers to compromise on what they want. They may spend more for a home, but plan to preserve as much cash as possible. Homebuyers may be planning to stay in their next homes for a longer period.

Second Quarter Sales Price of Lansing Area Homes Up 7.3% in 2020

Current Lansing Area Sales Statistics, Market Update

Year to date second quarter 2020 sales statistics show that the average sales price of Lansing area homes has increased from $175,313 at the end of June 2019 to $188,150 in June 2020.  This 7.3% increase represents a dollar value of $12,837 with average selling time reduced to 1.5 months. These figures include all sales through the Greater Lansing Association of Realtors.

Check out our Second Quarter Sales Statistics Link (below) for an update of sales activity by community. (Please note that pending sales, properties under contract that have not yet closed, are not factored into these statistics.)

Second Quarter 2020 Sales Statistics

Due to COVID-19 precautions, the number of sold homes was down 501 units or -15.8%. However, the six year seller’s market continues as we enter the second half of 2020 with only 849 available homes currently for sale in Lansing’s five county market area.  A balanced market, favoring neither buyer or seller, would be at between 2800 to 3200 units.

Mortgage Rates Continue Record Lows

Finance and Taxes, Market Update

The average rate on the popular 30-year fixed fell to another record low at 2.87% on July 24th.  That is about a full percentage point lower than where it was one year ago causing mortgage applications to be up 13 percent over last year.

This historically low mortgage rate bonus provides home buyers with increased purchasing power, and for current homeowners looking to refinance, it might be time to start shopping rates yet again.

 

Lansing Area Home Sales Rebound from Lockdown

Current Lansing Area Sales Statistics, Market Update

The March through May pandemic lockdown put the annual spring housing market on hold, but recovery is not an issue…the lack of available homes is.

Listed Today…Sold Tomorrow
Low mortgage rates have given buyers more purchasing power while an incredibly low inventory has been a bonus for sellers of move-in ready homes.  Properly priced homes have been receiving multiple offers, well above the asking price, by the end of the first day of showings.

Very Low Inventory 
The inventory of available homes in the greater Lansing market has never been this low. These are the statistics as of June 30th:

  • 805 available homes for sale
  • 534 Active/Backup. Homes that have an accepted offer and are awaiting home inspection and/or financial appraisal.
  • 649 Pending properties. Homes waiting for a date to close the transaction.

Lower Mortgage Rates
Mortgage rates have been all over the place since March. Falling after the coronavirus shutdowns, then rising when lenders became overwhelmed with refinance applications. For the week of June 15th rates rose to 3.21% after the most recent unemployment report showed the economy was recovering.

On June 22nd the interest rate for a 30 year fixed rate mortgage loan dropped to a new low of 3.13%. This is the base rate extended to borrowers with flawless credit, more than 20% equity or down payment, and no other additional risk factors. Rates vary depending on the borrower’s personal financial circumstances.

COVID-19 Precautions
Corona virus is still with us so sellers are expecting that buyers and their agents follow prescribed COVID-19 precautions when visiting homes. This means wearing masks and foot covers, using hand sanitizer and signing a form acknowledging that there have been no recent COVID health issues.

 

Home Value Continues to Rise in Greater Lansing Area

Current Lansing Area Sales Statistics, Market Update

First quarter 2020 sales statistics show that the average sales price of Lansing area homes has increased from $168,498 for the same period in 2019 to $178,903. This is a 6.2% increase of $10,405. Average selling time is 1.5 months.

Check out our first Quarter Sales Statistics Link (below) for an update of sales activity by community. (Please note that pending sales, properties under contract that have not yet closed, are not factored into these statistics.)

First Quarter 2020 Sales Statistics

Entering 2020, the Greater Lansing market continues to favor Seller’s with only 1087 available homes currently for sale. A balanced market, favoring neither buyer or seller, would be at between 2800 to 3200 units.

The sales volume is 6.1% higher but the number of available homes for 2020 is nearly identical to 2019. Low housing inventory has been the standard for the past six years.

Housing is not to blame for the COVID-19 recession, and in fact it will play a part in pulling the economy out of this recession. We expect a recovery in late summer, with pent-up demand creating a spring-like market in late summer and fall.