Michigan Housing News
Whether you're interested in buying a new home, moving from your current home, or tracking the Michigan housing market, we have you covered.
Winter is the best time of year to buy a home
As an ATTOM Data Solutions study shows, winter is the best time of year to buy a home, offering the biggest bargains to home buyers. Buyers who are willing to close on a home purchase the day after Christmas are likely to see the largest discounts below full market value compared to any other day of the year, the study showed. Among the states that often see the largest discounts below full market value in the winter, Michigan is the second with 7.2% in February.
Source: REALTOR® Magazine
Pending home sales fall as housing shortage is getting worse
The National Association of Realtors reports pending home sales, which measure signed contracts, fell 1.7% in October month-to-month. Lower mortgage rates this fall resulted in sales 4.4% higher annually. The average rate on the 30-year fixed mortgage was about a full percentage point lower this October than it was a year ago. Sales of newly built homes were significantly higher in October compared with October 2018. The strong demand makes builders shift production to more affordable homes.
West Michigan cities among healthiest housing markets
Based on the personal finance site SmartAsset’s interactive Healthy Housing Markets map’s four healthy-housing indicators (stability, risk, ease of sale and affordability), five Michigan cities ranked in the top 10 healthiest markets nationwide. Four of those cities are in West Michigan: Jenison (ranked fourth), Walker (is fifth), Northview (is eighth) and Wyoming (ranked ninth.)
Source: Sentinel - Standard
What $150k or less buys in Northern Michigan Real Estate Market
The median price for existing homes in August was $278,200, up 4.7 percent from a year earlier ($265,600). The market segment for homes under $150K is increasingly tight, and Northern Express lists homes that $150,000 or less can buy you in a very robust northern Michigan real estate market. From Traverse City to Leelanau County to Cadillac and from south to north, the Express explores 12 homes for sale (though some might be under contract by the time you read this).
Source: The Northern Express
Grand Rapids in the center of the Midwest real estate boom
According to the Wall Street Journal, in the spring of 2019, 10 metro areas in the nation saw double digit increases in home prices, Grand Rapids is the leader. It is affordability and the way of life that are attracting more people to the growing region. On average, homes are on the market for a month and that's half the amount of time than just a few years ago.
Source: Fox 17
Vacant homes in Detroit auctioned off for as little as $1,000
The Detroit Land Bank Authority (DLBA) aims at returning run-down and vacant properties in the city of Detroit to productive use. For this purpose, it is now auctioning off thousands of publicly owned properties through its public platform Auction with the bidding starting at $1,000 whereas as of June 2019. The program began in 2014, and since then Auction has sold 3,304 homes. There are no hidden fees, no credit checks, and all the title work is done before the home is listed. The DLBA even protects homeowners from inheriting back taxes or outstanding bills on the property but it has a six-month compliance program that requires winning bidders to renovate the auctioned homes.
Source: Business Insider
JPMorgan Chase commits $20 million for affordable housing in Detroit
Over the past years, JPMorgan Chase has invested $155 million in the revitalization of the city of Detroit, and now, the bank announced about planning on investing an additional $50 million in Detroit by the end of 2022. $20 million, part of $50 million will be committed to improve access to homeownership and affordable housing. Partnering with Cinnaire, CHN Housing Partners, and Opportunity Resource Fund, the firm will implement a lease-purchase pilot to help Detroit’s lower-income families achieve and sustain homeownership through the Low-Income Housing Tax Credit program.
Sales of new manufactured homes are beginning to rebound in Michigan
Sales of new manufactured homes are beginning to rebound after plunging in the early 2000s. The current surge in manufactured homes sales is being partially driven by retiring baby boomers, who see manufactured homes as an affordable option for either a primary residence or as a vacation home. That's because older buyers are more focused on affordability vs. long-term appreciation, and downsizing homebuyers can likely purchase a manufactured home outright, bypassing the financing issues.
Source: National Mortgage News
Michigan has a deficit of housing
According to Housing authority and Virginia-based consultancy firm RKG Associates Inc. report, Michigan, particularly Metro Detroit, will face a deficit of affordable housing by 2045. The housing market has been tight in recent years which has driven up single-family prices by more than 70% since 2012 statewide and has led to bidding wars, especially in sought-after neighborhoods.
Source: The Detroit News
Detroit is among the 10 cities with high ownership rates for low-income families
According to a new analysis from Redfin of the 50 largest metros with high ownership rates for low-income families, Detroit is the fourth on the list, following Minneapolis, Pittsburgh and St. Louis.
The city has a 55% homeownership rate among low-income households and a median sales price of $122,000.
Affordable housing community in Grand Rapids
St. James Apartments and Townhomes, an affordable supportive housing development project in Grand Rapids, Michigan features 52 new affordable apartments and townhomes that will target Grand Rapids residents who earn 30 percent to 60 percent of the AMI. Thirteen of the units will be reserved for persons with special needs. With the help of Colliers International|West Michigan’s Real Estate Development Incentive team, Genesis received a Low Income Housing Tax Credit reservation from the Michigan State Housing Development Authority in July of 2017.
Grand Rapids is the second in housing markets poised for growth
Despite Realtor.com predictions of the number of overall home sales to decrease by 2%, strong local economies and affordability are the main reasons for the increased influx of new residents in some of the metros. Grand Rapids, Michigan secured the second spot on the list of these metros at a median list price of $278,750, predicted sales growth at 4 percent and price growth at 8.2 percent. The city's economy is all set for continued growth, attracting new residents.