2023 Market Update
A Message From Lora K
In most of southeast Michigan, showing activity is up as are multiple offers and home prices. Inventory levels have risen slower than expected. With continued strong demand, inventory continues to control sales.
Regarding the elephant in the room….the NAR lawsuit. The focus of the lawsuit and proposed settlement is to ensure that both buyers and sellers are fully aware of how their respective realtors are compensated in a transaction. It is not a question of if they will be compensated but rather a negotiation of who will be paying the commissions and how much.
Food for thought….Cash is still King. The great takeaway is that the public has cash which is yet another sign that we won’t be seeing a huge influx of defaulted loans. With the cost of borrowing higher, buyers are financing less of their purchase, if any at all. Buyers who wanted “move-in” condition homes are now considering spending less on the home and using their cash to renovate resulting in built-in equity. This is great news for sellers also as their buyers’ financial strength is an important consideration.
