We are not in a housing bubble. Home prices are gaining at a relatively sustainable rate for now. The interest in homebuying today is serious and genuine compared to ten years ago when there was an overproduction in home builds. Now, we’re seeing a lack of homes on the market to meet demand—new builds aren’t relieving shortages fast enough and homes are moving fast. Inventory remains low because as fast as a home appears on the market for sale, it’s off, with many on the market for less than a month. That’s insane. Why is demand so high? Rates are low, jobs are good, and incomes are growing. If homebuilders don’t pick up the pace for adding homes to the market, it’s possible home prices will outpace household incomes and affordability will become an issue.
First-time homebuyers are making an impact on Michigan’s housing market but saving for a downpayment. The small sample survey offered insight into the concern of getting approved for a mortgage, finding credible information and advice on housing and financing, and uncertainty regarding ability to make the new payments. While these concerns are real, June’s Fannie Mae Home Purchase Sentiment Index shows consumers are also increasingly optimistic in overcoming those concerns.
The average FICO score hit 700 for the very first time.
The number of homeowners with positive equity is the largest it’s ever been, more than 40 million, while the number of underwater borrowers continues to decline to its lowest in 11 years.
Two Michigan lake towns, Frankfort and Grand Haven, made The Top 10 Lake Towns in America list.