Michigan Real Estate News

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Skilled Labor Shortage Complicates Construction Projects

Prior to the COVID-19 pandemic, there was not enough skilled labor to meet construction demands. That’s even more true now that development has almost returned to pre-pandemic levels in metro Detroit.  According to metro Detroit’s largest general contractors, that means less skill on job sites.  That, along with continuing supply chain and inflation issues, is causing project managers to scramble to meet demands. The number of Michigan construction workers has rebounded to pre-pandemic levels, but it’s still down almost 20% from 20 years ago. The number is not growing fast enough to meet the increasing demand. It’s anticipated that skill trades will account for 47,000 annual job openings through 2026.

 

 

 

First Merchants Corp. Closes On Level One Bank Acquisition

The Indiana-based lender First Merchants Bank acquired Level One Bank in November. The acquisition has cleared its legal hurdles, and First Merchants Corp.  closed on the $323.5 million purchase. The full integration of Level One into First Merchants is expected later this year. The combined bank is one of the 10 largest banks operating in Michigan. Patrick Fehring, Level One CEO, is expected to retire after the completion of the merger, but will join First Merchants’ board of directors next month. The combined bank will have 126 banking offices in Michigan, Indiana, Ohio and Illinois.

Mortgage Companies Expecting Leaner Year in 2022

The year 2022 promises to be a leaner year from mortgage companies. The mortgage industry rebounded in 2020 and 2021, propelled by rock-bottom interest rates and consumer demand. In 2022, things are changing. Mortgage rates increased to a level not seen since December 2018. The average 30-year-loan increased from 4.42 percent last week to 4.67 percent on Thursday. Rates have increased more than a percentage point and a half since the new year.  Fewer consumers in the refinance pool and the limited housing inventory are contributing to the rate increase.