New home purchases down in December.

New home purchases down in December.

There was a 13% drop overall in mortgage applications in December for new homes BUT that seems to be picking up here in January. In my personal observation during the winter people have opted to “lay low” until the thoughts of the spring market catch their attention. With low inventory here in West Michigan there are just not enough properties for people to purchase.

  I’ve had many buyers put home buying on the back burner because of the frustration of the low inventory and the multiple offers and not getting them. My hope is that as we approach spring our inventory here will loosen up and improve and home prices will stabilize if not reduce to reasonable levels.

As a buyer myself I see the stress that my clients go thru. I’ve been in the middle of multiple offers and have lost a couple of my own. But I keep telling myself there IS a house out there for me. I’m pre-approved and ready to buy but that doesn’t get me any closer to the top. I’ve prepared a search for myself and I drive by the homes in different neighborhoods just like everyone else.

 I do counsel my buyer/clients to make sure they are ready (approved by a lender), keep their finances in order and most of all not to do anything to negatively affect their credit score. I believe the most important part is being patient during the process. Trying to hurry it along will not get you anywhere. I’m branching off into new construction as I see that’s where the growth potential is going.

 There are so many new developments out there and people are seeing the value in buying new than in a resale home. I’ve had a couple interviews with builders and they have been favorable. My thoughts are 2019 is going to be an explosive year in real estate. I believe rates will drop,maybe not drastically but will open avenues for people to make a decision to move forward and purchase. We need affordability to move the market.