As we near the end of the winter market and prepare ourselves for another busy spring market, let us reflect on what we’ve experienced so far in 2017.
Overall, the market is leaning in a positive direction. Retail sales in January were stronger than expected. Hiring, low unemployment, wage growth, increasing consumer confidence, higher home prices and the improving stock market are all positive signs for consumer spending and will help drive the spring housing market
Three Michigan cities were ranked in the top 10 healthiest housing markets by Smart Asset. Jenison, Forest Hills, and Clawson, Michigan all made the top of the list based on stability, affordability, fluidity and risk of loss.
The potential rising interest rates are creating a sense of urgency for both buyers and sellers. Buyers looking for homes now are more serious about purchasing. They want well-detailed and move-in ready homes.
Homes that are priced between $150,000-$250,000 are still the strongest market, while the luxury market continues to trail behind. The strength of our moderately priced homes can be due to the heightened number of Millennial buyers. According to industry experts, more than half of U.S. homebuyers are currently under the age of 36.
Trends that will carry on into the spring: house flipping and new builds. The national flipping activity increased for the first time in three years, with Detroit jumping to 6% versus 1.2% in 2015. The Home Builders Association of Southeastern Michigan is also expecting 4-6% increase in new residential construction.