Blog about real estate related issues, property, living and vacationing in beautiful Boyne City, East Jordan, Charlevoix, Boyne Falls, Petoskey, and Walloon, Michigan.

Thursday, May 24, 2018

Why Haven't You Listed Your Property with Me Yet?

If you're thinking about selling (or buying), let's talk about what's happening...

Prices are rising as you may have heard on existing homes, but so are mortgage rates.  I have a client couple who have a contract on a home but it's contingent on the sale of their home.  Since they contracted that home about 90 days ago, the interest rates have risen 15%.  If they don't sell their home soon, they'll have to withdraw their offer based on the financing contingency. The monthly payments will be too high for the bank to approve the financing based on income.

Demand for homes remains high as there is a truly a lack of supply that is driving up the prices.  As mortgage rates rise, the amount of home or price that buyers can afford diminishes--if they can afford a home for their familial situation at all!

As far as building homes, not only are we way behind where we should be in the number of homes being built, the cost is becoming more and more prohibitive.  An example regarding the cost of building supplies, a sheet of OSB board last year was $7--this year that same sheet is $22.  Even so, builders are busy and it is hard to schedule a build.  Few developments are being started as investors are still a little cautious because of the financial crisis just 10 or so years ago.  Their money isn't going as far these days either for the same reasons I spoke above about.

If you'd like to talk to me about this or other real estate topics, please don't hesitate to contact me. brett@patobrien.com or 231.590.8230

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