West Michigan Real Estate Market Update

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Selling a home? Click here for a FREE Home Price Evaluation
Call me at (616) 942-2449 for a FREE home buying or selling consultation

Today, I'm here with your November 2015 West Michigan real estate market update! We'll discuss how this market compares to the 2014 November market by looking at the current data from Realtor.com.

First off, mortgage interest rates remain historically low. A 30-year fixed-rate mortgage has a 3.76% interest rate. If you are a buyer who's been on the fence, you need to take advantage of these low rates now.

Current listings are just over 4,000, which is down by 15% year over year. Additionally, we have seen a 3% decrease in inventory over the last couple of months, which is to be expected this time of year.

The median listing price is $188,000, a 19% increase year over year. Over the last 30 days, the median listing price has remained pretty steady. Again, that is very common this time of year. We will see a healthy reset as we head into the spring market, probably around late February or early March.

Finally, the average number of days on market is 60 days, which is a 13% decrease from last year. Homes are selling much faster because the market has improved since 2014. Now, over the last month the average number of days on market has gone up by 10%. Again, that is common for this time of year.

As for what to expect in 2016, market value should go up between 5% and 10%. No one knows when, but interest rates will increase next year. These historically low rates are great for buyers now, but in the long run, they just aren't healthy for the economy. You can expect rates to go up by 0.5% or 1%, which will still be incredibly low considering the past average.

It's important to know that there will be a reset in 2016. If you can buy a home today, this may be the time to do it. Capitalize on the low interest rates and the home prices before they go up next year.

If you have any questions, give me a call or send me an email. I look forward to hearing from you!

Do You Qualify for a Refund?

Buying a home? Click here to perform a full home search
Selling a home? Click here for a FREE Home Price Evaluation
Call me at (616) 942-2449 for a FREE home buying or selling consultation

Some recent home sellers may be eligible for a refund of the state transfer tax they paid at closing. This could mean a big refund for many folks because the Michigan state transfer tax is approximately 0.75% of the sales price.

That means if you sold a $275,000 home, you could have paid over $2,000 in transfer taxes at the time of your closing. The exemption itself was designed to protect sellers conducting sales in declining or depressed real estate markets, which was the case in West Michigan from 2006 until about 2012.

So, how do you know if you qualify for the refund? According to the application, there are two primary criteria to qualify for the refund.
  1. You sold your home when the property's SEV (assessed value) was less than when you bought it.
  2. The home must have been your primary residence, not a rental property or second home.
If you meet these criteria, you may ask for a refund by filling out the application for the state of Michigan department of treasury.

Additionally, sellers must submit documented evidence supporting the request. Required documentation includes the following.
  • Proof you paid the transfer tax.
  • Proof of the date of purchase and the SEV in year of purchase.
  • Proof of date of sale and the SEV in the year of sale.
  • Proof of sale price.
The application must be filed within 4 years and 15 days of the home sale. There may be penalties if you submit a request for a refund but do not qualify. Read the application carefully, and check in with an accountant if you're unsure about anything. If you have any questions, give us a call or send us an email. We would be happy to help you!