The CDC Takes Steps to Extend the Eviction Moratorium

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The CDC is poised to extend and possibly improve the moratorium on evictions. The eviction moratorium will expire in less than two weeks. The expiration could potentially put over 1 million people out of their homes.  With nearly 10 million Americans behind on their rent, Congress approved over $50 billion for rental assistance. However, the state and local channels have just now opened up the application process. The vast majority of people who need the assistance will not receive it in time should the eviction moratorium be allowed to expire in March.

Plans Resuscitated for Restoration Hardware Flagship Store

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The Birmingham planning board will meet on March 24 and review a proposal that revives plans to bring Restoration Hardware to downtown Birmingham.  A new 4-story building is proposed for the southwest corner of Old Woodward Avenue and Brown Street. The site is across the street from the new Daxton Hotel. The current buildings at the site would be demolished. After construction, the site would feature a new 54,000-square-foot building with Restoration Hardware as its anchor tenant. In addition, the development would have a top-floor restaurant and 24-space underground parking.

West Michigan Lakeshore Office Market Remains Stable

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Compared to larger cities like Chicago or Detroit,  the West Michigan lakeshore office market has remained stable through the pandemic. Still, commercial clients are conservative. Some are downsizing their office footprint or relocating to a smaller downtown area, like Holland,  so they can still offer a physical business site with nearby amenities when they need to conduct in-person business.  Medical office, insurance and financial sectors are particularly active in the lakeshore markets.

Weekly Brief – March 15

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A few random topics for your consideration this week:
  1. The topic of reuse of no longer desirable real estate is starting to appear more frequently in the media. As I have discussed in several updates, the use of real estate will continue to change as the market desires change. This week, Crain’s discusses the reuse of several sites, including the Holiday Inn in Farmington Hills (discussed here previously), as well as Fairlane Mall (discussed here previously) and Briarwood Mall (also discussed here previously). Watch for reuse of real estate to become a continuing topic as retail and office uses fade.
  2. I am hearing from some individuals who would be in a position to know that the foreclosure “boom” that has been predicted may be a much smaller boom than thought. A combination of governmental assistance, mortgage servicer leniency, and post-COVID economic recovery may make the expected boom more of a small bubble.
  3. The changing desirability of malls is a nationwide issue, and is impacting even one of the most storied and successful urban malls in the country, Water Tower Place in Chicago, which is losing one anchor (Macy’s), and watching a second anchor drastically reduce its footprint (American Girl Place). If Water Tower Place is being this dramatically impacted, perhaps pessimism about even the most successful malls in Michigan is warranted (perhaps even Somerset Collection, the fate of which I discussed previously).

16% Jump in Foreclosures for February 2021

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Despite foreclosure and Covid-19 relief measures for homeowners, foreclosures are actually on the rise. A report from ATTOM Data Solutions shows a 16% jump in foreclosures from January to February and notes an upward trend in 29 states. The government’s moratorium bans foreclosures on federally backed loans for homeowners and protects borrowers in the forbearance program. Loans on commercial and investment properties, and properties that are vacant and abandoned don’t garner the same protections, accounting for the slight increase. The yearly data still shows a significant decrease in foreclosures over the same period in 2020.

Group Halts Work on Historic Mill Site

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Rezoning of the historic Glen Arbor Mill faces opposition.  A group was able to successfully halt work on the site for 30 days while they collected signatures to add a referendum on the November ballot. The property owner intercepted an email in an effort to discredit the group. The rezoning of the historic property remain controversial.

To Buy or Not to Buy? That is the Question

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In 15 of the 50 largest metro areas across the country, buying is still a better option than renting. The relative price of buying a home hasn’t changed much, even with the historic growth in home prices over the last year. This is due to incredibly low interest rates. Realtor.com looked at the median listing price in each of the 50 largest metro areas, compared it to the monthly cost of renting in those same areas, and then compared those numbers to local incomes. Cities in the South and Midwest offer cheaper homes and a lower cost of living. Southeast Michigan is in the Top 10 of metro areas in which buying makes financial sense vs. renting.

Housing Counselors Prepare for Surge

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Calls from homeowners concerned about foreclosure have fallen while interest from homebuyers has surged. The trend points to an uneven economic recovery and the hidden impact of lost jobs and lower income. When federal foreclosure and eviction protection ends, housing counselors aren’t sure what to expect, as they are currently just guessing at the financial state of homeowners who may also be grappling with delinquent utilities, insurance, and car bills.

Hudson’s Site Tower Takes Shape

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The Hudson’s site tower is finally showing above-ground signs of construction three years after the Bedrock Detroit real estate firm broke ground at the old J.L. Hudson building site at 1200 Woodward Avenue. The property will include 150 residential units, a 200-plus-hotel, 400,000 square feet of office space, a 1,200-person event space, and 18,000 square feet of retail space. The completion date has been pushed back to the 2nd quarter of 2024. The planned tower is now also much shorter than the original concept.

Weekly Brief – March 8

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This week the focus is on the prospects for the housing market in Michigan in the summer 2021 selling season.

But first, a favor. If you find this weekly briefing and newsletter valuable, it would mean the world to me if you would forward it to others you think would find it valuable. And if this email was forwarded to you, you can sign up to receive this weekly newsletter here. My promise to you is that this newsletter will not be “spam”. The newsletter will provide real estate news to those who want to receive it.

Now, about the 2021 selling season. We have signs from all over Michigan that this a historic seller’s market. There are reports from West Bloomfield, Metro Detroit in general, statewide, and West Michigan. The reports indicate that the seller’s market is due to a combination of low inventory, as some sellers are reluctant to sell (because they will then have to buy), and low mortgage interest rates.

To be sure, the phenomenon is not unique to Michigan. There is low inventory nationally. However, listings in Michigan are down 54 percent in January, compared to only 42 percent nationally.

What can’t be known yet is what will happen in 2022. Will the market be flooded by foreclosed homes? Will mortgage rates inch up, bringing prices down? There is no crystal ball, obviously. But for this year, it appears the seller’s market is set. Prices are going to increase, and inventory will remain constrained.