By: Melanie Lovati, Innovation Real Estate, MI
Hello from Metro Detroit! Our real estate and REO market is one of the most exciting in the country and is being written up in various media as the place to invest. Warren Buffet, Jamie Diamond and Dan Gilbert are the mega players but there is still room for more. Rebounding from bankruptcy and a governing emergency manager there is allot happening here! Detroit is divided into districts and shares in international waterway with Canada. There are a multitude of businesses now flourishing here including automotive, medical, education and the blue economy which is unique due to the Great Lakes.
Midtown district is the shining star and is home to Wayne State University, the Detroit Medical Center and Quicken Loans. The revitalization of the Midtown area has spurred new development in the residential housing market as well as the commercial/retail real estate market. Downtown District – coming soon will be a new stadium to house the Detroit Red Wings which will be within walking distance to Comerica Park (Home of the Detroit Tigers) and Ford Field (home to the Detroit Lions). A new public transit system is underway to connect the suburbs to the city and should be completed in the next year. The underground tunnel to Canada plus the Ambassador Bridge lends way for international travel and trade. Urban pioneers are coming back into the city creating neighborhoods that are filled with writers, actors, artist and young entrepreneurs. The school systems and police department still struggle with budgets and management but are improving daily.
I must have said this 1000 times in since the crash of 2008 – You can’t fall off the floor. Michigan’s market promises excitement and continued brighter days on the horizon. Sellers took a beating from 2008 to 2012 but the market has changed and it’s a sellers’ market. Here are the stats from August 2015:
Not pictured above are REO and Bank Owned specific : The REO market conditions here continue to follow the national trend with a decrease if REO/Bank Owned properties. August saw 205 sales which is a decrease of 31% from August of 2014.
New real estate licensees in the state are also at an all-time high with 8227 new salespersons licensed from March of 2014 to March of 2015. EVERYONE wants to be in real estate. What this means is that all of us veterans in the business ( sellers, buyers and experienced agents/brokers) need to be proactive and extremely detail oriented. New licensees have to start somewhere and it could be on YOUR deal. En garde!
The pent up demand for new construction has caused a frenzy of development in both the city and the surrounding suburbs. Development is rocking and so is new construction. The trades are in high demand and relocation back to Michigan has started. Homebuyers are demanding clean well maintained homes. Improvements to landscape, kitchen and baths are still the top items for return on investment for both corporate and private sellers. Curb appeal sells and with the significant increase in values in 2013, 2014 and 2015 buyers are demanding value before they sign.
Statistical Content for this was provided by Mirealsource MLS