Year End 2017 Southeast Michigan Housing Report
- Mitchell Peterek
- Dec 4, 2018
- 2 min read
A look back at 2017.
2017 brought with it tight and depleted inventory levels that limited buyer options. Inventories were lower than they have been in over 20 years. Buyers worked hard to find move-in-ready homes. When premium quality homes hit the market, buyers often jumped on them quickly with offers above asking price.
Many buyers learned the hard way and went through this cycle 3 or 4 times before realizing that missing out on their dream home was a bigger loss than paying an extra $5k to ensure they got it.
While numbers varied by market area, price range and condition, in general, Southeast Michigan home values rose 6% in 2017. Homes in the entry and mid-level price ranges generally sold faster and saw more of a value increase than upper-end homes. In 2017, property condition had a significant impact on value.
Homes that were in great condition sold quickly and for premium prices. Homes that were in sub-par condition took a long time to sell and sold for much less. Sellers who said, “We’ll let the buyer fix that”, often paid a high price for that convenience. If the seller didn’t want to fix it, chances are a buyer wouldn’t want to either. Buyer wanted things done and were willing to pay premium prices when they were.
In the past few years, there has been a market shift with shrinking low-end markets and expanding numbers of upper-end listings. A large factor contributing to the shrinking number of entry-level listings is that in most market areas the distressed inventories left over from the recession are gone.
As values rise, upper-end markets have been growing faster than the demand—the number of buyers who can afford them. Since 2011, home values have risen 48% while incomes rose only 15%. As a result upper-end homes generally took longer to sell and their appreciation rates have been slowing compared to middle and entry-level markets.
The 2017 exception to this rule was that there was a shortage of high-end homes in extraordinary condition. Those homes often sold fast and for premium prices.
コメント