You may already know about the positive changes happening in Detroit.
This is having a huge effect on house prices in the city.
An article in Crain’s Detroit on 14th June tells you more…
“Homes in metro Detroit continue to demand higher prices as buyers grapple with low inventory.
Metro Detroit home buyers continue to grapple with low inventory that has forced the median sticker price for single-family homes to rise 8% over the past year, according to May market data from Realcomp Ltd. II.
Detroit saw the largest year-over-year percentage gain in the median sale price of 371 homes of 48% to US$37,000 last month. That number nearly doubled the gains that the city recorded in the four years prior, which saw median prices rise from US$10,000 in May 2013 to US$25,000 in May 2017.
Lauren Wilson, a real estate agent with Detroit-based Luxury Home Enterprise LLC, said she has not run into too many issues finding traditional homes in the city. Her clients include many millennial and first-time buyers.
“You’re sitting on something very valuable if you purchase a home in Detroit for US$60,000,” she said. “I assure you when you’re ready to sell [years down the line], you’re likely to double your price. Detroit’s market is a lot different from the other markets.”
That US$12,000 year-over-year price boost in Detroit’s homes is a more common occurrence in the suburbs. Oakland County’s stronger market saw its average year-over-year median price rise US$19,000 for a 7.8% gain, followed by Macomb County’s 9.7%, or US$15,000 increase. The median prices in Wayne and Livingston counties rose about US$12,000 for 9.7% and 4.8% gains respectively.
The competitive market is being driven by a growing demand for homes and a metro Detroit inventory that is down by 23% compared to the same time a year ago. Fuelled by a low unemployment rate and an economy that has proven to be formidable in recent years, buyers and Realtors alike are running into challenges.
While Detroit saw inventory drop about 4% in the past year, Oakland, Livingston and Wayne counties have seen listings drop by about 20%. Macomb’s decline reached 30%.
“The low inventory is insane right now, it’s unbelievable,” said Wilson, who also focuses on the Royal Oak and Ferndale areas. “They are letting people bid on a house to the point where they may not even appraise. At this very moment, it has begun to get a little frustrating.”
Realcomp CEO Karen Kage is surprised that the total number of home sales has stayed steady despite the steep decline in on-market listings in each county.
“Days on market continues to drop, which is another telling sign. When these houses hit the market, it has a line out the door,” she said. “We don’t want to get into the same position we were in 10 years ago when prices went up, up and up.”
Some sellers are hesitant to put their homes on the market because they worry about being able to purchase another home, which also strains the market, Kage said. Until more homes can be built, it is unclear how long the low inventory and high demand trends will continue to affect the market, she said.”
If you’ve put off buying in Detroit now is the time to take advantage.
Because I can still offer you fully renovated, tenanted houses from only US$35,995.
And you will earn rental returns up to 16.70% net.
But as you have seen prices are rising fast and your opportunity will soon be gone.
So if you want to see what’s available in Detroit – simply reply to me.
Comments are closed.