Real estate experts say there’s never been a market like this. The number of homes on the market hasn’t been this low in 30 years. Mortgage rates are at an all-time low. COVID is also contributing to the frenzy.
- Here's what housing inventory & months' supply means and how it affects home pricing
- Moving fast: Homes priced at $500K and below are on the market for an average of 22 days
The job of a real estate agent today is more than just managing the listing and the paperwork. It’s also managing people. “We talk about trying to manage expectations with buyers and sellers. But there’s a lot of hand-holding,” says Glenn Champion, President and Managing Broker with Signature Sotheby’s International Realty in Birmingham.
Top seller, agent Dan Gutfreund with the same firm says the market is, “It's out of control. It’s insane. It really is!” He also says real estate is in a COVID frenzy, “There was a shortage of toilet paper. Imagine what the frenzies were like for that. Imagine now the shortage of homes.”
On the seller’s side, now is the time to get the most out of your home, the equity. If you have a place to go, to rent, to live with family or friends and wait for the drop in the market you can sell high now and buy low later. But experts say, be realistic and don’t expect too much. “You’re going to be able to get a bunch of offers. You’re going to be able to ask for the moon and they’re going to go to the stars,” Champion tells 7 Action News.
We found an extreme case in Southgate just within the last week. A house went on the market and ended up with 29 offers after 89 showings in just 3 days.
The buyers and their agents lined up with appointments. The listing agent is Gretchen Hudson with Park Avenue Realty in Allen Park. She tells 7 Action News, “One specifically said, he showed up to show the home around 4:30, 5 O’clock with his buyer and there was a line of people from the front door to the curb. And that’s basically because of COVID right now. You have to limit the number of people right now.”
Local market trends also show a drop in the number of days a home on average sits on the market, with an increase in home sales and median price.
SEMI Housing Report Mar 2021 (1) by WXYZ-TV Channel 7 Detroit on Scribd
Coming soon listings are homes coming up on the market. They can have a sign in the yard, they can be promoted on social media but they are not supposed to have showings and they are put on the MLS for everyone to have a shot.
But Champion says, “The problem is there are sellers that get anxious. Buyers try to circumvent that knock on the door and sellers open the door. So again, it’s up to us to manage those expectations.”
The experts say people want a new home that has a workspace, play space, a nice backyard as people are staying home and they don’t have to be close to work with the commute.
As a buyer you can stand out by reducing contingencies in your offer:
You can waive getting the home inspected but that’s not recommended by Gutfreund.
“I would never recommend waving a contingency on inspection. You don't know what you're going to buy. You don't know what's in the attic. You don't know if the electrical panel has any safety hazards. These things are important for your family. Take the time. Even though we're in this particular position. Don't leave yourself short,” said Dan Gutfreund, top seller agent for Signature Sotheby’s International Realty, Birmingham.
How long will the frenzy last? Hudson says, “I predict it’s going to go on all year honestly. Just because there’s not enough inventory out there.”
But agents say that is getting better. People are jumping in to sell high. So fasten your seatbelt, be patient, and follow an agent’s advice.
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