• Sun. Feb 25th, 2024

    The Changing Landscape of Home Sales in Greater Lansing

    BySharna Bass

    Feb 1, 2024
    The Changing Landscape of Home Sales in Greater Lansing

    The residential real estate market in Greater Lansing is evolving, with modestly higher prices and increased home sales predicted in the coming years. While interest rates will play a significant role in shaping the future of the market, experts believe that a return to the skyrocketing housing prices seen in 2020 and 2021 is unlikely.

    Currently, about 85% of mortgage holders in the region have locked into sub-5% interest rates, which have deterred many homeowners from selling their properties. However, this could change if the Federal Reserve decides to adjust interest rates. Doug Petroff, president of the Greater Lansing Association of Realtors, points out that higher rates can impact home buying power, especially considering the existing housing shortage in the local market.

    In recent years, average home sale prices in Greater Lansing have continued to rise. Figures from Rooted Real Estate of Greater Lansing indicate a 4.6% increase in average home values. Bath Township experienced the largest growth, with home prices rising almost 20%.

    Despite rising prices, the Greater Lansing area remains affordable compared to other parts of Michigan and the Midwest. Factors such as the presence of Michigan State University and Lansing as the state capital contribute to the region’s appeal. It is forecasted that Lansing will be ranked 22nd among the nation’s 100 largest metro areas in terms of real estate market performance.

    The housing shortage is a challenge faced not only in Greater Lansing but also across the country. High housing costs and limited inventory in fast-growing markets have led to a significant increase in the cost of homeownership. However, if mortgage rates decrease, more sellers may be willing to enter the market, potentially increasing buying power for prospective buyers.

    Overall, while the Greater Lansing real estate market continues to face challenges, it remains a popular and relatively affordable location for homeownership. As home prices are projected to rise moderately in the coming years, the market landscape is expected to adapt to changing economic conditions.

    Frequently Asked Questions (FAQs) about the Greater Lansing Real Estate Market:

    1. What is the current state of the residential real estate market in Greater Lansing?
    The residential real estate market in Greater Lansing is evolving, with modestly higher prices and increased home sales predicted in the coming years. However, experts believe that a return to the skyrocketing housing prices seen in 2020 and 2021 is unlikely.

    2. How have interest rates impacted the housing market in Greater Lansing?
    Currently, about 85% of mortgage holders in the region have locked into sub-5% interest rates, which have deterred many homeowners from selling their properties. However, if the Federal Reserve decides to adjust interest rates, it could change the dynamics of the housing market and impact home buying power.

    3. What has been the trend in home sale prices in Greater Lansing?
    In recent years, average home sale prices in Greater Lansing have continued to rise. Figures from Rooted Real Estate of Greater Lansing indicate a 4.6% increase in average home values. Bath Township experienced the largest growth, with home prices rising almost 20%.

    4. How does Greater Lansing’s real estate market compare to other parts of Michigan and the Midwest?
    Despite rising prices, the Greater Lansing area remains affordable compared to other parts of Michigan and the Midwest. Factors such as the presence of Michigan State University and Lansing as the state capital contribute to the region’s appeal. It is forecasted that Lansing will be ranked 22nd among the nation’s 100 largest metro areas in terms of real estate market performance.

    5. Is the housing shortage a challenge in Greater Lansing?
    Yes, the housing shortage is a challenge faced not only in Greater Lansing but also across the country. High housing costs and limited inventory in fast-growing markets have led to a significant increase in the cost of homeownership. However, a decrease in mortgage rates could potentially attract more sellers to enter the market and increase buying power for prospective buyers.

    6. Is Greater Lansing a popular and affordable location for homeownership?
    Yes, despite the challenges, the Greater Lansing real estate market remains a popular and relatively affordable location for homeownership. The projected moderate rise in home prices in the coming years indicates the market’s ability to adapt to changing economic conditions.