A combination of lower mortgage rates, low housing inventory, rising income and higher consumer confidence are driving sales prices higher. This is in turn is increasing home values and quickly building equity.

Lansing area home sales prices have been rising steadily for the past eight years. Most recent statistics (March 2019) show the average sales price of Lansing area homes was $168,498, up 9% over the previous year. However, rising prices have not been discouraging homebuyers.

The result of the rise in average sales prices over the last two years translates into a huge home equity benefit for Lansing area homeowners. Those who purchased two years ago at the average sales price of $139,690 have accrued an average of $28,808 in home equity, $14,919 of which occurred over the past 12 months. That’s an average of $14,404 per year, enough to pay back their closing costs and put them almost halfway to eliminating any private mortgage insurance they may have.

The Lansing area real estate market continues to strongly favor sellers as we enter into the month of August.  Second quarter sales statistics show that the average sales price of Lansing area homes has increased $9,167 during the twelve months period between June 30, 2017 and June 30 2018.

Average Lansing Area home prices increase steadily
The average sales price of homes in the Greater Lansing area has risen 5.9% from $156,251 at the end of June 2017 to $165,418 in June 2018.  Check out our Second Quarter Sales Statistics Link (below) for an update sales activity by community. (Please note that  pending sales,  properties under contract that have not yet closed, are not factored into these statistics.)

Second Quarter 2018 Sales Statistics

Low inventory resulted in homes selling quickly during past six months
As of the July 27th, the number of available homes for sale is in the Greater Lansing market continues to be below 1500 units. This low volume has been a standard for the past three and a half years. A balanced market, favoring neither buyer or seller, would be at between 3000 to 3400 units.

The inventory Absorption Rate, the average time it takes to sell a home, has dropped from 2.8 months to 2.4 months. Absorption rate varies by community and price range.