Demand for Metro Detroit Real Estate Surpasses Supply
A few years ago, the housing market crashed and over 30,000 homes in the City of Detroit and neighboring suburbs went into foreclosure. Since then, investors and homeowners who did not lose their homes have been purchasing properties for remarkable discounts, while watching their properties slowly regain value. According to Realcomp, which is a Multiple Listing Service that delivers first-rate data on the Real Estate Industry in Metro Detroit, median sales prices have risen 85% since the crash. This is great news for everyone in the region!
While average “days on market” for homes before the recent upswing in prices and demand lasted months, today that number hovers around 52 days. The 30,000 homes under foreclosure of years past have been dwindled down to 13,000 and falling every day! What has changed in the recent years resulting in these numbers? The answer is simple—the average persons general ability to get loans and purchase homes today is higher than before, and the demand has outpaced supply.
The majority of homes that have been so highly demanded have gone down in availability almost 15% in the past year—these are the homes in price range below $150,000. Available homes in the category of $150-$200,000 have been reduced by almost 20%, according to Real Estate One. The growing economy in the region has had a major role in increasing the ability of individuals to purchase homes in these price ranges. Even the real estate agent pool has grown, with Re/Max (one of the largest American real estate franchises in the country) opening up 7 new offices in the region, increasing their total agent number by 11%