Good News For Metro Detroit
This summer metro Detroit saw an increase in home prices that were higher than the national average. With the value of homes increasing and the new home construction permits improving year by year the metro Detroit real estate market is slowly but surely on the rise.
Standard & Poor’s/Case-Shiller Home Price Index, a leading metric for home values released data last week stating Detroit-area home prices were 16% higher in June than the previous year. In comparison to the top twenty metro areas metro Detroit is 4% higher. Economist Ethan Harris from Bank of America Merrill Lynch noted that these numbers will continue to increase up to 6% by 2014.
If we look back at the peak of the Michigan real estate in 2005-2006 we are still about 15% off from our goal in 2014. We are seeing similar stats of the year 2008 in Michigan to what is happening in the market today. Here are some interesting facts from real estate professionals that prove what is happening in the market this year
“Overall, the report shows that housing prices are rising but the pace may be slowing,” said David Blitzer, chairman of the Index Committee. “As we are in the middle of a seasonal buying period, we should expect to see the most gains. With interest rates rising to almost 4.6%, home buyers may be discouraged and sharp increases may be dampened.”
Realcomp, a Farmington Hills-based multiple listing service, reported a median home sale price in July of $129,000 in the four-county region of Wayne, Oakland, Macomb and Livingston.
The Home Builders Association of Southeastern Michigan also reported Tuesday that the average value in July of a new, single-family home permit rose to $241,206 — a 12% increase from July 2012.
The 408 single-family home permits issued in July in Wayne, Macomb, Oakland and St. Clair counties was a 10% decrease from July 2012.
Still, from a 12-month perspective, the 4,226 permits issued between August 2012 and this July was 28% higher than the similar 12-month period that trailed July 2012.
The Home Builders Association said the past 12 months have been the best for construction permits since 2007.
If you would like more information on your local real estate market, or are first time home buyer not working with a Realtor and would like to schedule a consultation with a qualified Oakland County and Macomb County Realtor, please complete the Lang Premier Properties contact form to have a real estate agent contact you.
Ben Lang is a Birmingham Realtor specializing in Oakland County Real Estate. Ben is an agent with Max Broock in Birmingham, Michigan. See what past clients have to say about Ben Lang. Lang Premier Properties looks out for your best interests when you purchase a new custom luxury home. We always recommend working with an experienced luxury real estate agent when buying a new luxury estate.