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Metro Detroit's housing market is expected to stay hot in 2022 experts say

Posted at 7:26 AM, Dec 22, 2021

(WXYZ) — If you’re in the market for a new home or considering selling a property, you may be wondering what the housing market is shaping up to look like next year.

Last summer the market was sizzling with realtors telling me many new homes were being snatched up in their opening weekend.

Madeleine Fielder and her husband made four failed offers by August.

“Our last offer, we got beat out by an offer that was about 30-35 grand over asking price,” Fielder said.

WXYZ's Alicia Smith checked in with her this week and was told they put in another offer and came in second again.

Jeanette Schneider, president of REMAX of Southeastern Michigan says the November housing report shows the median sales price in Metro Detroit is up 12% compared to November 2020.

She says she expects prices to continue rising.

"I do expect them to continue to rise. I just would expect that we’re not going to sit at quite a robust a rate as – let’s say over the almost last two years."

On December 15, the federal reserve indicated that it would raise interest rates more aggressively to combat high inflation in the U.S., but when – or if – that will happen is still yet to be seen.

Alex Elezaj, the chief strategy officer with UWM United Wholesale Mortgage based in Pontiac says he does predict mortgage interest rates will rise.

“We do expect rates to tick up. You know, we do expect them to tick up maybe even higher in the second half of 2022 based on some of the fed announcements earlier this week,” he said.

He says right now rates are still coming in at around 2.75 which is still really low.

So, it looks like the seller’s market we’ve seen for some years now will continue here in Metro Detroit.