West Michigan Real Estate Market Update
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Today, I’m here with your November 2015 West Michigan real estate market update! We’ll discuss how this market compares to the 2014 November market by looking at the current data from Realtor.com.
First off, mortgage interest rates remain historically low. A 30-year fixed-rate mortgage has a 3.76% interest rate. If you are a buyer who’s been on the fence, you need to take advantage of these low rates now.
Current listings are just over 4,000, which is down by 15% year over year. Additionally, we have seen a 3% decrease in inventory over the last couple of months, which is to be expected this time of year.
The median listing price is $188,000, a 19% increase year over year. Over the last 30 days, the median listing price has remained pretty steady. Again, that is very common this time of year. We will see a healthy reset as we head into the spring market, probably around late February or early March.
Finally, the average number of days on market is 60 days, which is a 13% decrease from last year. Homes are selling much faster because the market has improved since 2014. Now, over the last month the average number of days on market has gone up by 10%. Again, that is common for this time of year.
As for what to expect in 2016, market value should go up between 5% and 10%. No one knows when, but interest rates will increase next year. These historically low rates are great for buyers now, but in the long run, they just aren’t healthy for the economy. You can expect rates to go up by 0.5% or 1%, which will still be incredibly low considering the past average.
It’s important to know that there will be a reset in 2016. If you can buy a home today, this may be the time to do it. Capitalize on the low interest rates and the home prices before they go up next year.
If you have any questions, give me a call or send me an email. I look forward to hearing from you!