Is the Fixer Upper Era Over?
Despite HGTV showing everyone how to be a “Real Estate Expert” most buyers are gravitating towards turn key properties. The problem is, a majority of the inventory on the market needs work. Homeowners stopped updating during the recession which worked for the market then (everyone wanting a fixer upper), but now the busy lifestyle of most working families has put a hault on the fixer upper mentality.
The moral of the story, buyers want move in ready, and will pay a premium for it. Most updated properties are under contract in less than a week and buyers would rather wait for the next one than consider a home that needs finishing touches, mechanical updates, or even small repairs.
Home that lack recent updates that fit today’s style and trends, will take longer to sell, and generally require a lower asking price.
On market inventories are the rise. As of June 1 inventory was 18% higher compared to the same time last year. The # of closed sales remains the same as last year, but the average price is up 2-3%. We’re still seeing seller’s market conditions in the entry to mid level price ranges, but supply levels jump in the over $500k price range, leaning this market in the buyers favor.
In Oakland County specifically, there are almost 20% more homes on the market now than this time last year, but the number of closed sales is actually down about 3%. Pricing is pretty stable with a 1-2% jump in sale prices. Despite the increased inventory the market in Oakland County still favors the seller in the under $400k price ranges. $400k and up is more balanced with sales up slightly and values beginning to level out.
If you’re a seller with an active listing that has been on the market over 2 weeks, you should be looking at regular price reductions until activity is steady. Thinking about selling? Consider updates first. Buyers want home with major mechanical items recently updated and homes in move in condition. Paint and flooring at the very least will increase the appeal. Check out www.michiganhomevalues.net for an instant market analysis on your property to check out its current value. Buyers, if you’re not finding what you’re looking for you may need to look at increasing your budget. Move in ready homes are now top shelf merchandise, alternatively you could consider a fixer upper. While remodeling costs are also up, you’re going to absorb the cost whether you buy a higher priced already done home, or a cheaper fixer upper. If you’re just starting your home search. check out my Auto-Intelligent Home Search program to help you search the MLS in realtime & get results tailored to your needs AND wants.