Michigan Realtors Shocked & Awed By Housing Market
Michigan realtors are stunned by the dog-eat-dog housing market. The low home inventory and historically low mortgage interest rates have created the perfect storm. Michigan’s supply of housing inventory is down 61%, and the median sale price is up 13.5% from a year ago. Some realtors say a home’s listing price has become something akin to a reserve price at an auction. Buyers are bidding far above the asking price and offering cash on the table. At the least, buyers need to come to the table with substantial cash down payments.
Metro Detroit’s Real Estate Market Surges Until Fall
Metro Detroit’s current real estate market surge will most likely continue into the fall. Homes continue to sell within a few days, frustrating potential buyers who can’t even schedule a showing. Farmington Hills-based Realcomp recorded the highest median sale price for the month of March in 18 years at $210,000. In the past, buyers desired turn-key ready properties, but in the current market, they’re considering homes that need work or could even be demolished and rebuilt because of low inventory. This trend is being seen nationally, too.
Residential Properties Fly Off The Market
Residential properties are flying off the market in Southeast Michigan. The average time a home spends on the market dropped from 66 days in March of 2020 to 38 days last month. Properties are moving so fast that open houses aren’t necessary. First time home buyers and those lacking a hefty down payment are struggling against the competitive market.
Downtown Lansing Struggles With Fewer Customers
/in Outstate /by Tracy WillisAll Michigan downtowns have been hit by the pandemic. With decreased foot traffic and former customers continuing to work from home, business is slow. But downtown Lansing has been hit especially hard as its businesses rely on the State of Michigan office hub. Struggling businesses have lost up to 90% of their sales while waiting for state employees to return to work. Unfortunately, even once the pandemic fades, far fewer state employees will return to work on a daily basis.
Dead Malls Repurposed In Surprising Ways
/in National /by Tracy WillisDead 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.
Mall Vacancies Set New Record
/1 Comment/in National /by Tracy WillisThe 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.