When is the best time of year to list your home for sale in Michigan? Like most things Internet, opinions vary. [1,2]
What is certain locally? These numbers from the Ann Arbor Area Board of Realtors: Single family home listings were down 12.4% (condos down 7%) during February of this year compared to 2017. That meant less inventory available for buyers. At the same time, homes were selling within 2% of average listing price, indicating that they were priced right. [3]
“Saline has had twenty-six months of continuously declining inventory,” added Todd Lands, Associate Broker with Charles Reinhart Realtors. [4,5]
Bill Smith, Senior Loan Officer, MB Financial Bank, further emphasized this point. “The past five years we have seen a steady decline in available existing and new construction homes, but most recently, in the past two years we have experienced an extreme shortage of existing homes.” [6]
In other words, it’s a very strong sellers’ market right now.
Demand is strongest for ranch styles sized 2000 square feet and under, Mr Lands told Saline Journal last week. “The sweet spot is three bedroom, two-plus car garage.” Baby Boomers are looking for smaller houses in greater numbers.
With the “Tax Cuts and Jobs Act” now law, it was logical to see what if anything Mr Smith is seeing as its impact on home purchase decisions. [7]
“It seems as though homebuyers are not overly ‘taxed’ (pun intended), or concerned by the tax code changes,” he responded. “And if we’re honest with ourselves, not too many homebuyers make a purchasing decision solely on a monetary or budgetary basis.
“Having ‘a place to call my own’ is a very common response I get from many clients when I ask them why they are buying a home now. Maybe they have rented or lived with family long enough and are willing to purchase for a sense of peace, comfortableness, pride, as well as becoming involved in the community they are moving to.”
Todd Lands doesn’t follow online gurus who advocate “magic windows” for timing residential listings. He recognizes that people “think spring is best, March though May, June.” [8]
But he finds it more helpful to talk about what’s behind that thinking so that his clients are better empowered to weigh options and decide for themselves.
The current average time on the market in Michigan is 43 to 59 days. Then, “even your cash buyer is thinking the seller expects 45 to 60 to closing,” he said. “They’re planning for that. So, once July hits, yes, there is a shift to closings. Things slow.”
By that math, a July 1 closing could mean a May 2 sales agreement. For some Saline Journal readers then, this article hasn’t come any too soon.
References
- “Why It Pays to List Your Home in Winter” Daniel Bortz (October 30, 2015) Money.
- “It’s the Time of the Season for Selling a House — or Is it?” Craig Donofrio (March 24, 2015) Realtor.
- Ann Arbor Area Board of Realtors (home page).
- Todd Lands, Associate Broker, Reinhart (home page).
- Charles Reinhart Realtors (Saline Michigan).
- MB Financial Bank (home page).
- “Tax Cuts and Jobs Act” US House of Representatives, Committee on Ways and Means.
- “Best Time for Selling a Home” Aimee Picchi (May 7, 2016) Consumer Reports.
