Is a Full Price Offer Enough?
Blog Search
Subscribe
Get the latest Michigan Housing Reports delivered straight to your inbox!
Although the availability of listings is slowly
rising, buyer demand remains extraordinarily
high in relation to supply. Buyers continue to
wait for the best listings and pounce on them
when they arrive.
Last month, 66% of closed sales in Southeast
Michigan were at or above asking price. Of
those, 50% were above asking, 16% were full
price and only a third were below asking price.
When making an offer, pay attention to closed
comps to see how much above asking price
successful buyers had to go to land the deal. If
you’re thinking this is a home I’ve got to have,
other buyers are probably thinking that too.
As we move through the second half of the
year, expect the frequency of over asking
offers to fade. It’s not so much an indication
that demand is dropping, but rather a reflection
of inventory quality. The best listings go
quickly with more over-asking offers early in
the season. Later in the year, the proportion of
fresh prime listings drops off and the remaining
inventory becomes picked over. Expect to
see market times (days on market) and the
frequency of price reductions to rise through
the balance of the year.
