Category Archives: Current Lansing Area Sales Statistics

Business as usual in the Lansing area housing market

Current Lansing Area Sales Statistics, Market Update

The spring home-buying season has begun, and it’s business as usual. The combination of high mortgage rates, and home prices, along with low housing inventory means that home buyers will have to adjust to the reality of elevated home prices and mortgage rates if they want to buy a home in the near future.

Will there be a significant change in the 2024 housing market?
There has been discussion about rates dropping a percentage or two, but a 6% loan isn’t going to push current home owners into giving up a home with a 3.5% mortgage. Perhaps 5% will look attractive to first time home buyers…but would you give up your 3.5% mortgage to move in this competitive market?

Of course, lower mortgage rates would stimulate sales…but also drive up property values as it did during the years of 3% and 3.5% loans. Armed with affordable loans, buyers will need to make  competitively high offers to land a home in a market with low inventory.

Snapshot of current Lansing area sales entering into the Spring selling season:
Lansing Area Market View – April 1, 2024
 418 – currently listed homes for sale in the five county greater Lansing area.
 249 – homes with accepted offers. (Awaiting inspections and/or appraisal.)
 325 – homes listed as Pending. (Have completed inspections and will soon close.)
 982 – homes that have closed since January 1, 2024. 

Current Mortgage interest rates 
  30-year fixed – 6.79% ($651 per $1000)
  15-year fixed – 6.11% ($849 per $1000)

3rd Quarter Stats… Lower sales volume with higher prices.

Current Lansing Area Sales Statistics, Finance and Taxes

Third Quarter 2023 sales statistics (July – September) showed that the average sales price of Lansing area homes increased from $231,429 to $240,458 as compared to the third quarter of 2023. This 3.9% represents an average home value increase of $9,029.

Third Quarter 2023 Sales Statistics

The fact that there were 977 fewer sales to date in 2023 (-18.6%) represents a low number of homes being offered for sale…not from any lack of enthusiasm on the part of buyers. Just about any properly priced home will receive multiple offers and be off the market within a few days. For established sellers, there is a serious reluctance to give up a 3.5% mortgage in order to enter into a now 8% mortgage on a different home. This, and unstable economic conditions is the main reason is the low number of homes to choose from.

Fall sales continue to brisk and show no sign of slowing as we move into November. Traditionally, sale begin to slow as we enter the holiday season.

Lansing Area Market View – October 30, 2023
 676 – currently listed homes for sale in the five county greater Lansing area.
 261 – homes with accepted offers. (Awaiting inspections and/or appraisal.)
 311 – homes listed as Pending. (Have completed inspections and will soon close.)
 4690 – homes that have closed since January 1, 2023. 

Current Mortgage interest rates (one percentage higher than second quarter)
  30-year fixed – 7.83% ($722 per $1000)
  15-year fixed – 7.15% ($900 per $1000)

Second Quarter Stats… Lower sales volume with higher prices.

Current Lansing Area Sales Statistics

Second Quarter 2023 sales statistics (April- June) showed that the average sales price of Lansing area homes increased from $230,299 to $234,818 as compared to the second quarter of 2022. This 2% represents an average home value increase of $4,519 for homes sold during those three months. The fact that there were 535 fewer sales in 2023 (-16.5%) does not represent a decline in Lansing area sales activity.  (These figures include all sales throughout the Greater Lansing Association of Realtors.)

Second Quarter 2023 Sales Statistics

Sales prices have been increasing steadily while the annual number of sold units has been decreasing each year. The 16.5% reduction in total number of home sales thus far this year has been caused was by the low number of homes being offered for sale…not from any lack of enthusiasm on the part of buyer. Just about any properly priced home will receive multiple offers and be off the market within a few days. For sellers, there is a serious reluctance to give up a 3.5% mortgage in order to enter into a 7% mortgage on a different home. This, and unstable economic conditions is the main reason is the low number of homes to choose from.

Spring and Summer sales have been brisk and show no sign of slowing as we move into August. Traditionally, sale begin to slow as we approach Labor Day.

Lansing Area Market View – August 1, 2023
 550 – currently listed homes for sale in the five county greater Lansing area.
 258 – homes with accepted offers. (Awaiting inspections and/or appraisal.)
 340 – homes listed as Pending. (Have completed inspections and will soon close.)
 3168 – homes that have closed since January 1, 2023. 

Current Mortgage interest rates
  30-year fixed – 6.81% ($6.53 per $1000)
  15-year fixed – 6.11% ($8.50 per $1000)

Home values are up. Sales numbers are down!

Current Lansing Area Sales Statistics, Market Update

Fourth quarter sales statistics (October – December) shows that the average sales price of Lansing area homes increased from $214,161 to $229,554 during the twelve months ending on December 31, 2022. This 7.2% growth represents an average home value increase of $15,393.  (These figures include all sales throughout the Greater Lansing Association of Realtors.)

 Check out our Fourth Quarter 2022 Sales Statistics Link (below) for an update of sales activity by community. (Please note that pending sales, properties under contract that have not yet closed, are not factored into these statistics.)

Fourth Quarter 2022 Sales Statistics

Interest Rates
The overall number of home sales is 864 units lower than at the close of 2021. This 11.5% drop was due to a sudden change in buyer purchasing power when mortgage rates suddenly escalated from below 3.5% to 5.8% in June. Rates went as high as 7.3%, finally finishing at 6.42% by year’s end. Many buyers, suddenly unable to purchase the home they had been shopping for, just walked away.

Financially, borrowing $200,000 in April 2022 at 3.5% would have produced a monthly mortgage of $898. The same $200,000 mortgage at 5.81% (end of June) cost a buyer $1175, an increase of $277 in the monthly payment.  A mortgage loan at 6.42% results in an increase of $368.

As we enter 2023
Owning is still less expensive, and more satisfying, than renting. Recent sales, and January open house activity has demonstrated that buyers are adjusting to the cost of home ownership at mortgage rates similar to what they were twenty years ago, when the market was booming.

Housing Inventory Market View – June 1st

Current Lansing Area Sales Statistics, Finance and Taxes, Market Update

Rising mortgage rates and record home prices have become the norm for the opening months of the spring housing market. Frenzied buyer demand for the few homes offered for sale since mid-March has pushed purchase prices 20% above what they were listed at.

Sellers offering homes priced below $300,000 have been receiving multiple offers above asking price with escalation clauses and appraisal guarantees.  An escalation clause provides that the buyer will pay $2000 more (example) than any other competing offer up to a set price, often 20 to 25% more than the asking price.  An appraisal guarantee assures that the buyer will pay the difference between the mortgage appraisal and the offered price. With many offers, buyer have even been waiving the inspection option.

Interest rates on a 30-year conventional mortgage have risen from 3.5% at the close of 2021 to between 5% to 5.4%.  However, increasing housing prices and interest rates has not slowed down the Lansing area real estate market enough to be noticeable.  This is probably due to rising rental rates continuing to make home ownership the better option.

Market  View – June 1, 2022
• 458 currently listed homes for sale in the five county greater Lansing area.
• 302  homes have accepted offers. Awaiting inspections and/or appraisal.
• 476 homes are listed as Pending. Have completed inspections and will soon close.
• 2486 homes have closed since January 1, 2022.
• 7331 homes have closed in the past 12 months.

Mortgage interest rates
30 year fixed – 5.1% ($5.43 per $1000)
15 year fixed – 4.31% ($7.55 per $1000)

Low Housing Inventory Again!

Current Lansing Area Sales Statistics, Market Update

There’s evidence of another strong seller’s market as we move into February 2022 with not nearly enough listed homes to satisfy buyer demand.

This is typically what happens when a fairly priced home is offered for sale through the real estate Multiple Listing Service.  Photos and details about the property are immediately made available on every listing service (Zillow, Realtor.com, BHHS, etc.) across the country. Buyers who have asked to be notified, are automatically alerted, and real estate agents arrange immediate showings.  Within a few days, the seller selects one from the multiple offers that have been presented, leaving the remaining buyers to wait for another home to become available.  This has become a way of life in a market with low housing inventory.

Market  View – January 30, 2022
• 440 currently listed homes for sale in the five county greater Lansing area.
• 271 homes have accepted offers. Awaiting inspections and/or appraisal.
• 351 homes are listed as Pending. Have completed inspections and will soon close.
• 7479 homes have closed in the past 12 months.

Mortgage interest rates
30 year fixed – 3.55%
15 year fixed – 2.8%

 

The Housing Inventory Has Hit An All-Time Low

Current Lansing Area Sales Statistics, Market Update

The number of available homes for sale typically decreases in the months of November and December, but this year’s current inventory is lower than what has been considered normal.  According to sources that keep track of housing statistics, the number of active listings on November 28th showed a 23% decrease compared to the same time period in 2020 and a 42% drop compared to 2019.

Even with the weather getting colder, the demand for homes will remain strong. New listings added through the months of January and February won’t increase the inventory significantly as these will likely sell quickly to buyers hoping to avoid competition during the annual spring surge which in early spring.

Those expecting a market crash that will soon end the current seller’s market should decide if they want to be homeowners or renters. Low housing inventory and mortgage rates at less than half of what they were fifteen years ago will continue to drive the annual multiple-offer frenzy we’ve witnessed each spring for the past eight years.

2021 Concludes with Continued Housing Shortage

Current Lansing Area Sales Statistics, Market Update

The Lansing area real estate remains an active seller’s market with enthusiastic buyers jumping on new listings in spite of the traditional holiday slowdown. With limited choices, newly listed homes continued to receive acceptable offers within a few days.

Sales and Inventory of Residential Homes as of December 28th
496 currently active listings. (Entire Lansing area market area)
273 homes with accepted offers.
392 homes pending a closing date.
7452 homes have closed in the past twelve months.

Mortgage Rates at 3.05%
3.05% is the current 30 year interest rate closing out December.  This monthly mortgage payment will cost a buyer $4.24 per each thousand of borrowed money.
($100,000 mortgage = $424 monthly payment)

 

Low Inventory Continues…Home Values Rise

Current Lansing Area Sales Statistics, Market Update

Average home prices have continued to rise as shown by third-quarter (July – September) sales results. Mortgage rates are currently at 3.09% making it easy for buyers to make extremely competitive offers for the few available home choices.  Through July, August and September, sellers continued to receive offers exceeding the listing price and are often given an “appraisal guarantee” assuring that the buyer will provide additional, out-of-pocket, funds for the closing of the purchase.

According to third quarter 2021 sales statistics,  the average sales price of Lansing area homes increased from $194,103 at the end of September 2020 to $213,401 on September 30, 2021.  This is a 9.1% increase and represents an average home value increase of $19,298.  Average selling time for many homes is less than one month.  These figures include all sales through the Greater Lansing Association of Realtors.

 Check out our Third Quarter Sales Statistics Link (below) for an update of sales activity by community. (Please note that pending sales, properties under contract that have not yet closed, are not factored into these statistics.)

Third Quarter 2021 Sales Statistics


Market  View – October 28, 2021
• A strong seller’s market continues through the month of October.
• 675 homes listed for sale in the five county greater Lansing area.
• 413 homes have accepted offers, awaiting inspections .
• 617 home are listed as Pending. Have completed inspections and will soon close.

 

 

Normal Real Estate Slowdown Entering September

Buyer Information, Current Lansing Area Sales Statistics, Seller Information

The current inventory of homes (770) is more than double the 353 homes available to buyers in April. This increase occurs at this time every year and does not indicate a change in the current seller’s market.

Historically low interest rates, currently at 2.87%, continue to offset the increased cost of purchasing a home with properly priced homes continuing to sell quickly, and with multiple offers.

Why the increased inventory?
Each spring the inventory includes a large number of properties that for a variety of reasons didn’t sell the previous year.  A home in poor condition or lacking a second bath may be passed over by buyers willing to wait until something better comes along. Obviously, an unappealing home is not going to easily sell as a growing number of more attractive homes become available.

Then there’s the reduced number of buyers.  As of August 30, 1,022 homes have accepted offers or are pending a closing.  Also, 5,255 homes have closed since the beginning of the year. This adds up to 6,277 buyers who are no longer searching for a home. Add to that figure the families involved with back-to-school activities who may need to postpone home shopping until next spring.

This is good news for September buyers still in the hunt.  Increased inventory plus reduced competition may provide an opportunity to acquire their home of choice.