Michigan Real Estate News

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Real Estate Market Trend Predicted to Continue

Realtors and brokers predict that Metro Detroit home prices will continue their record-breaking trend into the fall and holiday season. Virtual home inspections and online home purchases are likely to return to in-person showings and open houses. In June 2021, single-family real estate sales shattered records with median sales prices at their highest levels ever, and the number of homes available for sale rose for the second straight month. According to Realcomp, the median sales price rose 18.4 percent to $244,000 for single-family homes. Home showings also increased in June, and the average time on the market went from 60 to 22 days.

 

Challenges Continue With Traverse City’s New Construction Market

Homeowners who want to build in the Traverse City area are facing hurdles. They need to come with cash, a buildable lot, a contractor with a pool of skilled tradesmen, and then more cash to offset the increase in building materials. There has been a 250% increase in lumber prices. The annual average increase is between 3 and 7 percent. Many construction companies are booked months ahead. Those that are available for work are struggling with supply chain issues. Workforce issues also contribute to construction delays.

Detroit Landlords Are Given An Ultimatum

Detroit Mayor Mike Duggan has given bad landlords an ultimatum. If they don’t clean, sanitize and restore damaged properties from last month’s flood, they’ll be fined $250 a day. The effort may not be enough in the face of the myriad of difficulties renters face. Year-long delays with home repair grants programs, mortgage challenges, over-assessed properties and a tax foreclosure operation have made things hard. For the first time in 50 years, renters outnumber homeowners, but with a high poverty rate and scarce renter’s insurance, renters are struggling after last month’s floods. They don’t qualify for most home repair programs, nor were they protected when their landlords were foreclosed and their homes were put on the auction block. Many Detroit landlords don’t keep their rental properties in good repair. Experts believe that renter-focused policies is the answer.