The tax credit that gave new home buyers and move up home buyers an opportunity to receive $8K or $6.5k, respectively certainly had a positive impact on the market, especially in the month of April, as buyers rushed to get in under the deadline. Multiple offers were commonplace and anxious buyers often bid up homes for well over asking price.
Everyone wondered what would happen in the month of May, once the incentives were gone. I am thrilled to report to you that our company, SKBK Sotheby’s International Realty, had it’s best month in 5 years, putting approximately $32,000,000 in accepted new business on the books. Our market extends well beyond Birmingham and Bloomfield, and sales from neighboring communities like Royal Oak, Troy, Beverly Hills and surrounding Oakland County municipalities are always a major part of our business.
A number of factors contribute to this.
- Inventory remains low, well below previous years and sellers have become more accepting of current market valuations as they try to sell their homes.
- Interest rates remain low, attracting buyers to the market.
- Consumer confidence is rebounding. Investors are picking up great deals, and home buyers who intend to occupy are able to do the same.
We are working with buyers who consiously decided to wait until AFTER the tax credit to avoid the rush and the competition. Those buyers are now in a position that is slightly less competitive than what we were seeing at the end of April, though we are still seeing situations with multiple offers and homes selling quickly. In fact, two of our listings, one in Birmingham and one in Bloomfield Village, both sold within their first 10 days of listing.
I am optimistic that our market has taken a turn and is becoming more balanced and vibrant once again.
Photo by Patricia Drury