News

Actions

Realtor.com: Millennials are driving the housing market in metro Detroit

Ferndale, Southfield, Livonia among hottest spots
Posted: 8:14 AM, Sep 28, 2018
Updated: 2018-09-28 08:14:28-04

The hottest zip codes list has been released by  Realtor.com and once again, a Michigan city makes the top-10.

Kensington, on the west side of the state, received the top overall rate. That said, metro Detroit has it’s own areas that are starting to heat up and inch closer towards the list including: Ferndale, Southfield (48076) and Livonia (63143).

What exactly makes a zip code “hot?”

“By that, I mean homes are selling quickly and they’re getting a lot of buyer interest,” said Danielle Hale, the chief economist at Realtor.com.

That’s important because it means homes are selling faster than ever in some spots. In the same time an average U.S. home sells, three sell in Ferndale.

Hale pointed towards Ferndale’s relatively cheap median costs compared to other Oakland County locales as to why homes are selling quickly, but she noted that millennials are specifically driving the ship when it comes to houses disappearing off the market. The data they’ve collected shows that 36 percent of homes sold in Ferndale are bought by millennials, which is higher than usual.

That’s why Hale said you have to be prepared if you’re looking at the “hot zip codes” for your next home.

“Make sure you know what’s going on in the market,” said Hale. “You want to make sure you get pre-approved for a mortgage so once you find that home that’s right for you, you can act quickly to put in an offer.”

Finding a home quickly after it hits the market is important, too. With homes selling on average 21 days after they hit the market in Ferndale, it means finding it quickly after it lists is important.

Hale suggested setting up a price alert on their  website so that you can get a notification the second a property in your price range hits the market.

It’s important to note that while prices are lower than the surrounding areas, the drive toward smaller, more suburban locales will also move costs up eventually. Among the top 10 hottest zip codes in 2018, Realtor notes that they all share a few traits: relative affordability, strong local economies, and outdoor and cultural amenities.
 
Realtor.com’s 2018 Top 10 Hottest ZIP Codes
 
#1: Kentwood, Mich. 49508    
#2: Colorado Springs, Colo. 80922    
#3: Watauga, Texas 76148    
#4: Castro Valley, Calif. 94546    
#5: Peabody, Mass. 01960
#6: Boise, Idaho 83704
#7: Worthington, Ohio 43085
#8: Overland Park, Kan. 66210
#9: Rochester, N.Y. 14624
#10 Upper Montclair, N.J. 07043