2014 Local Year-End Statistics and Observations
Historic High Sales Prices
Steady Sales Volume
2014 was another strong year for the local real estate market, and we ended the year with historic high median sales prices. In the 5-county region, our median sales prices for single-family homes rose 6 percent to $170,000 (from $160,000 in 2013).
The number of homes sold totaled 2,856 in 2014…down by only 1 percent from 2013.
Other Interesting Statistics
The average Days on the Market (DOM) for 2014 decreased significantly from 183 days in 2013 to only 150 days in 2014. But a well priced home in show condition in a good location typically will be on the market for less than 90 days. And a home or condo in a hot location will usually see an offer in 30 days.
The average sale price to list price ratio remained steady this year at 95 percent. The percentage improves when the home or condo is in a hot location.
What’s hot right now? Condos anywhere and homes in the city limits of Traverse City, at the base of Old Mission Peninsula, or in Elmwood Township, as well as homes and condos with big water views.
According to the National Association of REALTORS, the Federal Reserve plans to raise its target federal funds rate this year, which will cause mortgage rates to rise. Many economists are predicting 30-year fixed rates to rise to 5 percent by year end (currently 3.625 percent.) This is an important point since 88 percent of buyers finance their home purchase.
With rising sales prices and rising mortgage interest rates, buyers should move quickly if they want to spend less. A delayed purchase will result in a higher purchase price and a higher monthly mortgage payment.
As buyers exhibit a stronger sense of urgency, sellers will gain an advantage by listing their homes now while inventory levels remain low. We are seeing very strong buyer activity this winter, so list now while your competition is less. I have put two waterfront listings under contract this winter, which is typically not the best time to sell waterfront homes. While traditionally sellers have waited until April or May to list their homes, for 2015, the best selling season appears to be now.
As always, if you are in the market to sell or buy a home (or if you know someone interested in selling or buying), please give me a call. My business purpose is to help you achieve your real estate goals…one relationship at a time.
CENTURY 21 NORTHLAND
Andrea Galloup, REALTOR®
Associate Broker, GREEN, ASP, GRI
2014 Master Diamond Award Winner
241 E. State Street, Traverse City, MI 49684
“Selling Homes One Relationship at a Time.”