(WXYZ) — Are you looking to buy or sell a home? After reading this story you might be!
SE Michigan home sales double the national trend
Nationally, home sales are down 8.6 percent, but in metro Detroit, home sales are up 7.9 percent, according to ReMax of Southeastern Michigan. Home prices in southeast Michigan are up nearly 5 percent since last year and communities in Macomb County continue to see the largest amount of growth overall.
First-time home buyer Lyndsey Ramsay doesn't think she and her husband are asking for too much.
“We want a decent yard, an attached garage,” Ramsay said.
But it turns out, Ramsay and her husband have found it difficult to find a home that's updated and within their price range. Fully updated starter homes are in shorter supply, but the demand for high-end homes is strong and low interest rates make financing them easier.
“It’s natural supply and demand,” says Al Block, co-owner and associate broker of ReMax First.
HOT SELLER MARKETS
Ramsay wants to live in Shelby Township, but it’s feeling out of reach for the hopeful first-time home hunter.
“For what you get it's definitely mind boggling," Ramsay said. "You drive up to these neighborhoods and these signs will say, 'starting in the mid-400,000s' and it's like, oh my goodness! How? For $230,000 (and under) you can't really find an updated house… it's tough”
Block points to why it's so difficult.
“The problem is people want more for their money in that lower price range, and they don't see it,” he said.
By the numbers, according to the Southeast Michigan Council of Governments (SEMCOG), Shelby Township came in at number four in Macomb County for population growth between 2010 and 2018, and there are no signs of that growth stopping.
Businesses have been booming with the new 1-million-square-foot Amazon Center among the commercial developments to move in.
Updated homes are expensive but there are plenty of people paying the price.
For nature lovers with money to spend, Shelby Township is a dream! It's home to Cherry Creek Golf Club, Stony Creek Metropark, the Macomb Orchard Trail, that includes a 24-mile hike and bike path that connects to 180 miles of trails across southeast Michigan and township hike and bike trials as major assets.
Sellers in Macomb Township are also getting top dollar as demand increases. It’s been Michigan’s fastest growing township in single family housing for the past three years, according to Supervisor Janet Dunn. Macomb Township has experienced the biggest population growth in county since 2010, according to SEMCOG, increasing by 11.5 percent.
According to the Michigan Department of Treasury, the City of Sterling Heights has the fifth-highest property value in the State of Michigan and the highest property value in Macomb County for the year of 2018.
Royal Oak has been booming for awhile. Home prices are beginning to level off but this is still a hot market for sellers and an in demand place for buyers.
“People seem to be attracted to the downtowns,” Block adds.
Plymouth & Northville:
Both Plymouth and Northville have vibrant downtown areas, with high walkability scores and a variety of artistic, musical and cultural experiences. The two areas have partnered on economic growth initiatives.
Home owners looking in Plymouth and Northville can get top dollar.
HOT BUYER MARKETS The Best Buyer ROI (Return On Investment)
“Buy in an area that has room to grow in value,” Block said.
While there is no crystal ball or guarantee, he says to look for areas adjacent to the hotspots.
Madison Heights & Oak Park
“People can't afford Royal Oak, well guess what's happening in Madison Heights? People want to live there more than ever,” Block said.
Similarly, Oak Park is benefiting from Ferndale’s growth. In addition, Oak Park has been investing in additional bike lanes and increasing walkability. Investment in a downtown is another predictor of potential real estate value growth.
Warren & Center Line
"Warren is adding a city hall or civic center in south Warren and I believe that's going to make a world of difference,” Block said.
With the investment in downtown and the consistent economic growth, Wyandotte has seen steady increase in property values and is getting more attention for the variety of unique local businesses and services available. It is a HOT market for buyers right now, but still affordable.
Commerce Twp & Milford
Commerce and Milford townships are among Oakland County’s fastest growing communities. Commerce announced a $100 million retail and entertainment complex they are hoping will be the foundation for a thriving downtown.
Livonia & Westland
Adjacent to Northville and Plymouth, Livonia and Westland are getting spillover! Buyers are showing a lot of interest in Livonia and Westland right now and homes are still affordable for the budget buyer.
THE DIFFERENCE MAKER
No one wants a fixer-upper this year.
“We would rather just move in, get going and not have to worry about it," said Lyndsey Ramsay, a potential first-time home buyer. "Maybe very minimal work."
Al Block, co-owner and associate broker of ReMax First says this is becoming more common today.
“The trend is to have your house turn-key ready," Block said. "People do not want to paint, they do not want to do anything."
If a home isn’t fully updated, even if it’s in a hot zip code, there's a good chance it won't sell.
“People do not have the time or the money to make capital expenditures,” Block added.
If it does sell, the buyer will want compensation for the update and hassle because buyers will want to be rewarded financially.