(CBS Detroit) – According to the National Association of Realtors, the number of real estate listings is on the decline in October, and sales and prices are decreasing.
“I can’t say there’s anything to worry about. I think people should be careful,” said Marcus Cronce, a real estate agent with Real Estate One.
Croce said the market remains strong despite rising interest rates, but the situation is much different than in years past.
“There’s definitely some sort of economic downturn going on, so I’m telling everyone I work with that two years ago was really crazy. “We probably had over 10 offers. Everyone had appraisal guarantees and the escalation was escalating. “We were doing everything we could to comply with this clause and keep the home safe. We’re doing pretty much everything. Things are still going on, but not on the same scale,” Cronce said.
But new data from Redfin suggests sellers in other parts of the country are losing money and struggling to turn a profit.
According to Redfin, about 6% of home sales result in a loss for the seller, and that number has doubled since last year.
Cronce said that hasn’t happened yet here in Michigan, but the economy has certainly cooled down here and rising interest rates are definitely a factor.
“In terms of interest rates, obviously there’s a big difference from two years ago. People were pegging interest rates at 2.5 to 3.5 percent, and now they’re over 7.5 percent. That’s a big difference.”
The key for buyers is to be cautious and conservative. For sellers, thinking long-term can help them avoid losing money when selling their home.
“If you’re going to turn around and sell in a year or two, you need a different approach than if you’re going to be around for 10 to 20 years,” Cronce said.