Why the Metro Detroit Real Estate Market is now a Sellers Market

It is all about the inventory. When you have more inventory than buyers, you have a buyers market. When you have less inventory than buyers, you have a seller’s market. When the Metro Detroit Real Estate market crashed several years ago, the banks flooded the market with foreclosures. The banks within a few months had filled the market with so many homes that there was only place for the market to go, and that was down. Over the last several years the market has slowly been absorbing or purchasing these bank owned homes. Along with the bank owned homes many sellers were in situations where they had to sell their home as a short sale. So as the Metro Detroit Real Estate market has been recovering over the last several years, fewer bank owned homes have been coming on the market and there have been fewer short sales too. At the peak of the housing decline, there were more than 50,000 homes for sale in the multiple listing system. Today, there are less than 33,000 homes for sale. Almost a reduction of 40% in inventory. So now that the market inventory has lowered to this level, and with an average of 5,000 homes selling per month, we are faced with an inventory of only six months worth of homes for sale. Again, with fewer homes coming into this market place, prices have begun to go up at a very rapid pace. I have read in several real estate publications that with Metro Detroit being one of the top five hottest market places in the county, values are expected to rise over 20% over the next few years. So if your thinking of buying a home, the time is now. Values are going up and competition is getting even more competitive.


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