The spring home buying season has kicked off with the Fed raising interest rates by a quarter point. While this will make mortgages slightly more expensive, it's negligible therefore will not slow down this market. The Metro Detroit/Ann Arbor areas still suffer from a lack of quality inventory. What happens when a solid quality house priced correctly hits the market? It doesn't last a week let alone a day in some cases.
According to what the Fed has indicated, we can expect two more rate increases this year. We don't expect the next rate hike (expected to be a quarter point) to do much to curtail the market. However, the third increase, depending on when it occurs could slow buying down. Now if any of these increases are more than a quarter point all bets are off. Fortunately, the Fed does a good job of indicating what's to come. Still, it would not be wise to underestimate what low inventory has done to home prices.
So for you buyers, you need to be pre-approved before you see that first home. That way, when you find a home you like, you can get your offer in immediately. And in this market don't get cute and lowball your offer. There's a good chance the seller has two more who were serious. Do your research, know what the comps are, and make an informed offer. Your agent should do this for you before you make an offer. Just know, some agents are better at this than others.
For you sellers, if you price your home for what it's worth, and not based upon buying a boat, vacation home, and trip to Tahiti, plan on being ready to move and get packing!