You read that right.
Over the last 5 years median house prices in Detroit have risen by 167% according to Realcomp II.
In the last month they rose by 13.9%.
An article published in Crain’s Detroit on 14th August tells you more…
“July sales of homes and condominiums in the region are up 6.8% over the same month last year, according to July market data released Monday by Farmington Hills-based Realcomp Ltd. II.
Despite lagging inventory, metro Detroit reversed last month’s 7.9% year-on-year decline in total sales.
“It’s actually gone up, even with inventory down, so that’s good news,” Realcomp CEO Karen Kage said.
The median sale price ticked up by around 6% from US$185,000, last year’s July figure, to US$196,500 last month.
Unlike Oakland County, which saw total unit sales rise 5.8%, neighboring Macomb County’s fell 2%.
Wayne County saw a 13.8% increase in that category, boosted by significant Detroit growth.
Detroit recorded a comparatively bigger 26.5% jump in monthly total sales to 415 and a median sale price increase of 13.9% to US$34,738.
The difference isn’t surprising, given prices have risen 167% in the past five years in the city, compared with 57% in Macomb County and 86% in Wayne County as a whole.
“It’s strictly a seller’s market,” said Dan Gutfreund, a Birmingham-based top producer with Sotheby’s International Realty, which is headquartered in New Jersey.
End-of-the-month inventory across the region continued its downward slope, contributing to price hikes and steep competition. On-market listings fell 19% year-on-year and the average number of days on the market dropped 3.8%.”
Realcomp CEO Karen Kage explained…
“It’s been pretty steady like this over the last six to nine months. The other piece is … a lot of people buying a home aren’t selling a home, so they’re not bringing anything to put on the market. There’s a lot of that one-sidedness and I think that’s what’s driving the inventory so low.”
Realtor Kenneth Evans concurred…
“The crazy thing about Detroit is, I don’t think a lot of people understand how much international investment there is in the city in the residential market. They are pretty much using the Detroit (residential) real estate market as an investment vehicle. Purchasing a home here … versus buying a similar home in California might be a difference of hundreds of thousands of dollars. As the market continues to gain in value, they can make a substantial profit.”
So, 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 19.39% 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.
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