After watching mortgage rates hit two-decade highs and inventory plummet last year, many hopeful homebuyers are eager to get off the sidelines and into a new home!
While 2024 is expected to be a better year for the housing market in many respects, a lot of buyers are still going to struggle to find affordability. If you do plan to buy a house this year, here's what you need to know about the housing market and how you can prepare.
2024 Michigan Home Prices and Tips
The average home price in Michigan is $251,600 this is a 5.4% year-over-year increase. Experts predict further price increases due to lower inventory levels. This means you should be preparing early before starting the process of buying a home. Getting your finances in order while home prices are likely to remain high. You'll also want to take advantage of lower mortgage rates by making sure you get the lowest rate possible!
One fast way to get your credit score up and obtain that lower interest rate is to lower your credit utilization. This will also decrease your debt-to-income ratio, which is another factor mortgage lenders look at when considering which rate to give you. Try to pay off or pay down some credit cards, start with cards or credit lines with the highest interest rate first, then pay off smaller balances. This will improve your debt load and your overall credit score!
You can also look for affordable mortgages and possibly first time homebuyer assistance. A big advantage for many buyers in 2024 will be utilizing mortgages geared towards first-time homebuyers and combining them with grants or other forms of down payment assistance.
Timing your purchase is a simple yet effective way to ensure the best outcome for yourself and/or your family. There may not be a single "best time" to buy in 2024 because that depends on each buyers priorities, so it is important you figure out yours. For example - If getting the lowest rate possible is most important to you, you may want to wait 6 months to a year before making this large purchase, shop rates, pay off debt etc. However, if you are looking to avoid competition, buying within the next few months might be a better bet. Plus, you can always plan to refinance later on as rates drop.
Inventory Levels
Michigan's housing market is facing a shortage of properties, with this limited inventory this should create a seller's market environment. If you have been on the fence about selling your home, now may be the time you'll get the most amount....
The limited inventory and high demand position shows that sellers can dominate the market in 2024 as home prices are expected to continue rising. Sellers who hesitated to list their properties in 2023 may think about re-entering the market, contributing to increased inventory levels.
Conclusion
Overall, the Michigan real estate market for 2024 offers opportunities and challenges for both buyers and sellers. While sellers are poised to benefit from rising homes prices and limited inventory, buyers can capitalize on lower interest rates. Understanding the market and working with knowledgeable real estate professionals can help individuals make informed decisions in the environment!
