Low inventory and high demand have led to a 7.7% appreciation in home values in our region.
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What’s happening with home prices right now in Southeastern Michigan? Let’s look at some national statistics and see how home prices are changing.
First, our national average for days on market is 28 days. I’ve never seen a number that low in my 24-year career, and we’re certainly seeing a trickle-down effect in our market—some of our listings are selling in less than a week or even a day or two.
According to the latest report from Freddie Mac, the number of homes sales increased from 632,000 in June 2016 to 656,000 this past June. In our Midwestern region, the number of pending home sales decreased year over year by 3.4%. The main reason for this is the low inventory levels we have.
Our low level of inventory has lead to an appreciation in home values.
Low inventory leads to an appreciation in home values, and many listings are getting multiple offers because there are more buyers out looking for homes than there are homes available. Another factor driving appreciation is the fact that distressed properties have dwindled down to 4% of the market, which is great. Between 2008 and 2012, 35% to 40% of the market was either a short sale or foreclosure, but 4% is a much healthier number.
In the Midwest, all of these factors have led to a 7.7% appreciation in home values.
If you have any questions about these figures and what they mean for our market or you’re interested in having an equity evaluation done on your home, feel free to give us a call or shoot us an email. We’d be happy to help.
