Lower mortgage rates help fuel a seller's market

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GRAND BLANC (WJRT) - (4/3/19) - For anyone thinking about selling their home, Mid-Michigan real estate agents say a seller's market is prevailing around the region.

Fewer "for sale" signs are popping up, leading to a tighter supply of homes on the market. That means homes are selling faster and for more money.

"Real estate is a little bit seasonal with snow and things like that, so spring, things really rev up," said Tammy Schub, owner of Michigan Homes Real Estate.

The appetite for homes is getting an extra push from interest rates.

"Everyone was predicting that 2019 would see that reverse and become a buyers market and there's indications of that in the beginning of the year," said Jeff Tufford, manager of Epic Mortgage. "But, with the rates going down that seems to be something that's going to push it back to being more like 2018."

Rates have dropped nearly one percentage point from last fall, making it cheaper to afford more home for your money.

First-time home buyers may find they can afford more house for their money, but may have a harder time getting the house they want.

"There's a lot of competition for a house and so people jump in and they see a house they want to put an offer on it, and by the time they sign the paperwork to put the offer in, someone's already got it locked up," Tufford said.

For buyers with some patience, they may want to wait a bit.

"We wind up going into a little bit more of a buyers market when it comes into fall, because we have inventory that's been sitting and those homes need to be sold in the fall. So we'll see a little bit of price reduction," said Schub.

Many factors can influence your final interest rate, including credit score, down payment and length of the loan.

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