Are Home Prices Likely to Come Down in Chelsea, Dexter, and Saline?
By Jeff Roth, www.arboradvising.com
Do Home Buyers Have Any Hope Of Prices Coming Down? Yes and No
The story the last few years in real estate is how unaffordable buying a home has become with interest rates and prices going up and the inventory of properties for sale falling off a cliff.
In short, the housing market has become dysfunctional especially at the affordable end of the price range with multiple offers still common and properties selling in a matter of days.
What hope do home buyers have? Winter.
Historically, median prices, on average, are 30% lower in the winter. That is an enormous difference in favor of the buyer in the winter months.
However, will the median prices next winter be lower than this year? Not likely, because of inventory being so low.
So, if you are going to buy, buy in the winter but waiting until next winter is probably not going to help in terms of median sales price.
Are Interest Rates on Mortgages Likely to Go Lower Soon?
Not likely in a significant way.
If we look at mortgage rates historically, they are at or above current rates except for the period of time after the 2008 Great Financial Crisis where the Federal Reserve was holding interest rates artificially low through “quantitative easing” or money printing.
Currently, the 30-year fixed rate mortgage is 7.22% according to FreddieMac. This is slightly lower than it has been in the past 4 weeks with the 52 week average being 6.77%.
How Was the Housing Market In Chelsea, Dexter, and Saline for October Compared to Washtenaw County?
According to the Ann Arbor Area Board of Realtors, inventory decreased 36.0% for single-family homes and 30.5% for townhouses/condos in October in Washtenaw County compared to a year ago.
The median sales price in Washtenaw County increased 11.8% to $390,000 for single-family homes and 12.1% to $299,950 for townhouses/condos.
Days on market decreased 18.5% for single-family homes and 30.4% for townhouses/condos in Washtenaw County.
Inventory continues to get tighter, prices continue to rise by double digits, and properties are selling faster on average.
Let’s compare this to the last two months of available sales data for Chelsea, Dexter, and Saline.
How Did The Sales Data Compare From Sept. to Oct. 2023?
New listings trended lower for most communities, days on market was about the same, and median sales prices were mostly higher.
We will have to see how prices trend through the traditionally slower winter selling season with interest rates and inventory levels.