There is no current evidence that mortgage rates are slowing our housing market. Strong consumer confidence, at a 15-year high, is leading the charge, along with continued housing appreciation and competitive lending rates.
Historically, 3.6% is the average yearly appreciation rate for one’s home. Currently we are experiencing 5% and this should continue with Core Logic, NAR and Fannie May all giving our nation a “thumbs up” for continued growth of family wealth in the housing industry.
In 2016, the national appreciation average was 7% and Michigan could easily reach 5.8% appreciation this year, if the inventory starts to flow. Here in W. Michigan’s Kent County, we have approximately 1.4 months of inventory, with six months of listings considered a healthy, balanced market.
Buyers, keep in mind that while this high rate of appreciation growth does fluctuate, a five-year projection of home equity, based on the purchase of a $250,000 home today, looks like a value of $293,000 in early 2022! Interestingly, our foreclosures are down to 7% of all sales and currently we are experiencing 7% less inventory than last year at this same time.