The cherry blossoms are on the trees, the Bayshore Marathon route has been marked; it is officially spring in Traverse City. With the change of season usually comes a ramping up of the real estate market. Will that be the case this year?
Yes, but likely not in the same way you’d expect. As our national, regional, and local economies continue to ride the rollercoaster of uncertainty that is COVID, inflation, conflicts abroad, and a significant labor shortage, we’re left wondering what our “busy” season (from Memorial to Labor Days) will actually look like.
Zillow’s most recent Market Report offered some interesting insights and predictions into our nation’s housing outlook as a whole. Here are some of our big takeaways from that report + what we here at Brick & Corbett think it will mean for Traverse City.
1. Inventory is on the Rise Nationally
Overall, the national inventory shortage is actually starting to ease. It’s important to remember that this doesn’t necessarily mean that there are more houses for sale, just more relative to demand. With mortgage rates jumping a bit more quickly than most of us would care for, a typical mortgage payment gets you a lot less house than it did just six months ago, so demand across the spectrum has started to wane a bit as spring listings are increasing.
Locally, we’re still waiting to see this trend take shape. Yes, the crazy buyer demand of the record-low interest rates is fading a bit, but not enough to make a noticeable dent in the overall real estate picture.
The median days on market for residential homes in Traverse City from 4/23/22 to 5/23/22 was just 36 days. Ask any real estate professional you know, and they’ll tell you that translates to lightning-contracts on any homes that are offered up for sale.
Big Takeaway: Traverse City is absolutely still a seller’s market. You might not be getting the 50-showing-requests-a-day sort of activity we saw last fall, but new inventory is still going very quickly.
2. Home Values are Still Increasing, But Not as Fast
Nationally, Zillow measured the increase in typical home value in April 2022 as being more than 20% higher than it was in April 2021.
Those sorts of jumps were accentuated in Traverse City and beyond through 2021 and the start of 2022, but it appears these price jumps might be slowing.
This is entirely neighborhood-dependent, but we’re starting to see the occasional price reduction hitting the market in Traverse City as sellers are coming back down to Earth when it comes to their projected home valuation.
Big Takeaway: Pricing a home right now is very tricky. You need to have an experienced, local, Realtor on your side to take into account the specifics of our area and the history of your neighborhood. Brick & Corbett has this experience, this local knowledge, and the know-how to give you an accurate assessment of how you should price your home.
Check out our free home valuation tool and get started today with your home pricing process.
3. Annual Rent Growth Slowed Nationally (But not in Traverse City)
Across the country, rent growth in the month of April inched up by less than 1% since February, a first in over a year. That trend, however, has not been seen in Traverse City.
With the pool of available rentals shrinking as more and more apartments are condominimizing, rents in Traverse City have continued their climb upwards, as you’d expect when supply is shrinking and demand is growing (especially as our service sector swells for the approaching tourist season).
Big Takeaway: Right now is a tough time to rent in our local market. If a move to a new rental is on the horizon for you in the future, it’s best to start getting yourself on waitlists now. And, plan on padding your budget a bit, especially if you plan on being close to downtown Traverse City.
Your Turn
What sort of real estate activity are you seeing in your neighborhood? Tell us in the comments below.
And, when you’re ready to talk about how the #1 real estate team in Traverse City can help you achieve your buying and selling goals, Brick & Corbett is here to help. Our team of seasoned real estate professionals knows what it takes to get you across the finish line. Contact us today.
