Coming out of last year’s lockdowns, few expected such an aggressive market with extreme buyer competition, multiple offers, and rising prices. While experts have been expecting a cool-down and there had been temporary signs of one in June the market continues to rally with weekly new pendings are continuing to run with last June and July’s big rebound numbers and outpace 2019’s “typical year” numbers. The YOY rise in average sale price is higher than it’s been in 30 years.

Rising home values, combined with the lack of affordable housing and overall inflation, are pushing home prices out of reach for many buyers.

Inflation is caused by rising prices of our everyday goods and services such as food and gas. The Consumer Price Index is up 5.4%, and the average sale price of a Southeast Michigan home rose 19% in the past year. That combination has been pushing home purchases out of reach for many first-time and entry-level buyers.

Recent increases in inventory provide some relief, but first-time and entry-level buyers should look to lock in on their purchases sooner rather than later. The combination of inflation and rising prices may be moving affordable homes, out of reach.