Lumber prices driving construction costs

Supply Chain Drives Up Home Prices

/2 Comments/in /by

According to home builders, materials cost increases are driving new construction home prices up, as much as 14%. Lumber price spikes have been dramatic due to mills closing the Pacific northwest and the southeast United States,  tariffs imposed on Canadian softwood lumber, and increased demand for new housing. Builders are not making additional profit; the increase is entirely due to rising materials costs. That, in turn, has caused the price of an average new single-family home to increase by $24,386.

Former Scripps Mansion Site Envisioned For Townhomes

/in /by

A trio of developers are planning 65 townhomes in Detroit’s Woodbridge neighborhood. The $18.5 million development is at 3700 Trumbull St. between Selden and Brainard streets. The joint venture is a collaboration between Detroit-based Tekton Development, Detroit-based Civic Companies, and Bloomfield Hills-based Robertson Bros. The development would have 48 one-bedroom townhomes with about 1,300 square feet and 16 two-bedroom townhomes with about 1,600 square feet. Construction should begin in the fall and be completed within three years.

Dead Malls Repurposed In Surprising Ways

/in /by

Dead malls are the ghost of retail pasts, but they’re being repurposed in creative ways. Amazon is using old mall space as new fulfillment centers. One dead mall has become the new headquarters for Fortnite creator Epic Games. To survive, malls are bringing in non-traditional tenants like bowling alleys, gyms, and grocery stores. Turnover and vacancy are high in mall real estate right now.

Millennial Home Buyers’ Dreams Fall on Hard Times

/in /by

Millennials make up the largest population of homebuyers, but many are having a hard time finding homes within their budgets. In many Southeast Michigan areas, the median home listing price has jumped by 15%-19% when compared to previous years. Buyers are approaching the home buying experience like an auction, some even willing to skip home appraisals and inspections. In Michigan, homes are moving 34% faster with only 44 days on the market.

Upward Retail Trend Predicted to be Short-Lived

/in /by

Even with retail businesses taking advantage of cheaper rents and ample space, UBS predicts the upward trend will be short-lived. They estimate that 80,000 retail stores across the country will be closed by 2026.  Online shopping had contributed to the downturn for retail storefronts pre-pandemic. Stimulus dollars and consumers’ focus shifting to goods over services has recently bolstered retail, with store openings outpacing store closings for the first time in years. UBS predicts that retailers that sell office supplies, sporting goods, clothing and accessories will be the hardest hit.

Texas Courts Begin to Allow Evictions

/in /by

Texas courts are indicating that they will not enforce a federal order that would stop evictions during the coronavirus pandemic. While Congress has approved billions of dollars to help people pay their rent to avoid eviction, many of those tenants have yet to receive any of that money. The Texas Supreme Court did not extend its emergency order, and the Texas Justice Court Training Center issued guidance essentially telling judges it’s not their job to enforce the CDC’s order. Legal aid attorneys are gravely concerned about the tens of thousands (and possibly more) who will be left homeless.

Mall Vacancies Set New Record

/1 Comment/in /by

The vacancy rate for regional malls in the United States hit a record 11.4% in the first quarter of 2021 from 10.5% in the fourth quarter of 2020, according to Moody’s Analytics’ commercial real estate division. Shopping traffic to enclosed malls has been steadily decreasing for years due to Americans spending more online. In it’s latest quarterly report, Moody’s finds that other commercial real estate sectors are showing better progress, retail is still in crisis.

Home Appraisal Gap Causing Trouble For Home Buyers

/in /by

With the quick turn around in the home market, buyers are entering into bidding wars to secure their dream homes. Homes are selling above appraisal values creating a gap for buyers to make up. Many are tapping into retirement accounts or accepting loans from family in order to purchase their homes. With many sellers waiting in line to purchase one property, buyers must be prepared to come to the table with a substantial amount of money.

DTE Energy Pulls Out of Downtown Ann Arbor

/1 Comment/in /by

DTE Energy is seeking a buyer for its office building on 414 S. Main Street in downtown Ann Arbor. DTE is accepting offers for the property but has yet to set an asking price. In April 2020, the utility company pulled 400 workers out of the Ashley Mews office. Those employees began to work from home amidst the pandemic. DTE has over 5,000 employees who are working from home. The 400 employees from the Ashley Mews office will either continue to work from home or relocate to the Detroit headquarters. The utility company is protecting the arrangements they have with other tenants in the building, so the remaining occupancy in the building will remain unfazed.

Home Price Index Jumps

/1 Comment/in /by

According to the S&P Corelogic Case-Shiller National Home Price Index, home prices continued their acceleration in January. They jumped 11.2% year over year, the biggest gain in 15 years. Month over month, prices rose in 19 of the 20 cities tracked. Year over year, prices rose in all 20. Detroit data was included in January’s indices for the first time in a year due to interruptions in data collection due to Covid-19 shutdowns.