Weekly Brief – March 8

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

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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.