Sellers have advantage in hot housing market

Buyers looking to find their dream homes in St. Clair County may find themselves in a challenging market this spring with high demand and low supply.

And there is currently no evidence that scenario is going to change, according to Keller-Williams Real Estate Agent Andrea Shifflett.

Like the stock market, the housing market typically goes through waves in seven to eight year periods. The market bottomed out in 2008, and has since been more of a seller’s market.

“We thought it was at the top, but there are so few houses available, the seller’s market is staying good,” Shifflett said.

According to the National Association of Realtors, December saw historically low home supplies and slower sales, but across the country the number of existing home sales was still the highest since 2006.

Because there are fewer houses available to purchase, the price of the homes has continued to climb.

A quick search on www.realtor.com shows low inventory for many of the county’s communities. Port Huron features 183 properties for sale, Fort Gratiot has 122, Marysville has 43, Kimball has 83.

On average, homes have been staying on the market for about 50 to 60 days.

Shifflett said the “sweet spot” for sales in 2016 seemed to be for homes priced between $100,000 and $140,000.

“The $100,000 houses are selling really fast,” she said.

That is right in line with the average, as homes in Port Huron cost about $79,000 overall. Countywide, the average price for a home is about $117,000. And she doesn’t foresee home prices going down at all when the market picks up in spring.

So why are people moving to St. Clair County? Shifflett, who also recently moved to the county, said there is so much going on in the community, it’s a great place to invest and raise a family. People are also able to purchase more home for their money compared to other locations in metro Detroit.

One of the best parts of the area is living near a city, but not in a city.

“It kinda gives the best of both worlds,” Shifflett said.

Many people say convenient freeway access, to both I-94 and I-69 make it ideal. Port Huron also allows for occupational diversity. Jobs aren’t just related to manufacturing, retail or business. There is something for everyone.

According to St. Clair County and the Eastern Thumb Association of Realtors, the average sale price jumped from just under $130,000 to almost $150,000, a 15 percent increase from December 2015. Nationwide, the average home price is about $235,000, up about 14 percent since last year.

Ultimately, whether a house sells quickly depends on its condition.

The housing market could change as spring arrives and more homes are put on the market. However, rising interest rates and prices may affect the number of people buying.

According to Freddie Mac, the 30-year, conventional, fixed-rate mortgage is on the rise, climbing from 3.77 percent in November to 4.20 percent in December. That’s the highest since April 2014, when the average rate was 4.32 percent.

But homes in the area are appreciating faster in St. Clair County than nationally — good news for those who have already invested in a home.

About 50 percent of homes in Port Huron are owned, about 38 percent are rentals and 13 percent are vacant. Port Huron is home to about 30,000 residents and there are about 163,000 in the county.

Those ready to move need to be prepared act quickly if they find their perfect home, Shifflett says.
One of the best ways to do that is to get a mortgage pre-approval. Knowing how much home you can afford before shopping is important because you’ll be shopping for homes you can afford, and you’ll have peace of mind moving forward with an offer.

“Get your pre-approval right away, so when you do find the right home, you’re ready to put in an offer that day,” she said.

She also suggests keeping an open mind about the cosmetics of a house.

“You may find one that’s perfect except for one or two things, like carpet or wallpaper. The right agent and lender will show you how you can fix those things to make it yours.”

While the market may be getting more challenging for buyers, it is still a good time to find a new home.