2018 Michigan Real Estate Market Predictions.
Michigan’s housing market experienced some highs and lows in 2017. It was a year of highs for sellers, with more money coming in over listing prices and plenty of people buying. The lows came to people buying, who needed to bid high to get even the lowest priced homes. Now let’s start looking at what the 2018 Michigan housing market is doing so far.
We can hope that the inventory crisis the Michigan housing market faced last year is going to be over this year. There is potential for more homes to go on the market. We predict that the inventory problem will go away in 2018, but it won’t change the fact that houses will quickly sell. Michigan is rife with home flippers looking for the next good deal. That’s why, in 2017, the average home stayed on the market less than a month.
Michigan’s biggest thing to brag about to date is the ever-increasing economy. Just three years ago we reported that Michigan’s economy is one of the strongest in the U.S., allowing that money to flow down to the housing market. For 2018, it looks like the industries to watch out for, according to MLive, are food, energy, health, IT, water, and transportation. Michigan is still a leader in the automotive industry, even if they aren’t as high on the food chain as they once were. The economy and jobs are just a couple of things that influence the Michigan housing market and how we predict where things will go in 2018.
Michigan Housing Market Influencing Factors for 2018
Spring is peak home buying season in Michigan, and we’re predicting that there will be some increased home prices. The market is increasing. The average home price is currently around $208,000, that’s a yearly increase of 6.2 percent. High prices and a low inventory of homes makes the market look a little bleak for buyers.
We predict that the inventory will begin to increase as the year commences, with older families whose children have moved out looking to downgrade to smaller homes or condos. The thing is, the lack of sellers in the Michigan housing market has not stopped the buyers from scooping up homes when they become available. Here are some of the things influencing Michigan’s home market in 2018.
- According to Zillow, Michigan’s overall median home value is $139,900, which is up 6.9 percent since the beginning of 2017. With home prices rising more people may be willing to sell. While we predict the prices of homes won’t increase much more overall, less than 2 percent increase, through this most popular buying season, we do foresee more inventory on the horizon. Listing prices are a bit higher, averaging at about $160,000. Rent in Michigan runs about $1,050 a month, especially in popular growth cities, like Grand Rapids and Ann Arbor.
- Foreclosure rates have a recorded effect on the housing economy and predictions for each year’s sales and growth. Michigan is below the U.S. average for foreclosures, at .9 percent. There is just over 11 percent of Michigan homeowners still over their heads when it comes to mortgages, but we don’t see that increasing the foreclosure rate by more than one percent.
Three Best Places to Buy a House in Michigan
Once upon a time, Detroit was a bustling metropolis, and while they are slowly growing again, it’s still not on the list of best places to live or buy a home in Michigan. Where you buy in Michigan greatly depends on the lifestyle you want to lead. If you’re looking for rolling farmlands, consider Michigan’s plentiful, but small, thumb area. If you want woods and waters, and snow for most of the spring, consider the U.P. or the northern lower peninsula. If you want thriving cities with nightlife and fun, consider these three Michigan metropolitan areas.
If you’re looking for a city that has a huge arts community, lots of nightlife, and plenty of beer, look no further than Grand Rapids. Beer City U.S. is a bustling metropolis that boasts numerous yearly festivals including the world-renowned ArtPrize. Home values nestle around $141,900 in the greater Grand Rapids area, with higher priced homes in East Grand Rapids and the Heritage Hill district. Home values are on a continual rise, even in suburbs like Wyoming. We predict a 5 percent raise before the year is over. The median rental prices go from $1,362 a month to $1,150 a month depending on the area, according to Zillow.
Housing costs, especially on the rental front, are continually rising in the Ann Arbor area. The high costs are pushing many buyers and renters to look for homes in Ypsilanti right now, according to residents of the area. The median home value, reported by Zillow, is $353,100. We predict this will continue rising another 3 percent by 2019. Ann Arbor is a college town and a medical mecca in the state of Michigan.
While the previously mentioned cities are both in the midst of seller’s markets right now, Lansing offers a buyer’s market. The state’s capital is a great place to live and work and offers a rich nightlife. According to Zillow homes average about $81,000 in Lansing, which is an increase of 12.3 percent from the previous year. We predict this increase will keep going up as more homes sell and more people realize what this city has to offer. Another 10 percent by the start of 2019 wouldn’t be surprising.