Global Investments Incorporated have been selling in Detroit for over five years now, this year we are seeing the lowest supply and the highest prices in the last five years.
Low inventory has forced the median price for single-family homes to rise 8 percent over the past year, according to May market data from Realcomp Ltd. II. Detroit saw the largest year-over-year percentage gain in the median sale price of 371 homes of 48 percent to $37,000 last month.
That number nearly doubled the gains that the city recorded in the four years prior, which saw median prices rise from $10,000 in May 2013 to $25,000 in May 2017.
Lauren Wilson from Detroit-based Luxury Home Enterprise LLC quoted “”You’re sitting on something very valuable if you purchase a home in Detroit for $60,000,” she said. “I assure you when you’re ready to sell a few ears down the line, you’re likely to double your price”.
According to Crains Detroit the competitive market is being driven by a growing demand for homes and a Metro Detroit inventory that is down by 23 percent compared to the same time a year ago. Fueled by a low unemployment rate and an economy that has proven to be formidable in recent years, buyers and Realtors alike are running into challenges.
Realcomp CEO Karen Kage is surprised that the total number of home sales has stayed steady despite the steep decline in market listings “Days on market continues to drop, which is another telling sign. When these houses hit the market, it has a line out the door,” she said. “We don’t want to get into the same position we were in 10 years ago when prices went up, up and up.”
At the moment we can not predict when the trend may change as buyers are still lining up as soon as homes hit the market but we will continue to deliver the best available tenanted properties in Detroit.
Detroit has come a long way in the last five years and we always stayed ahead of the game, we signed up the biggest Brokers and Realtors to ensure our clients got the best exclusive properties that were on offer in Detroit.
As a company we have said it before, time is starting to run out for the Overseas Investor who wants to buy in Detroit, high market prices and low inventory levels will make it increasing difficult to sustain a good return.
If you are considering buying a property in Detroit this is the year you need to do it, we can not predict how much further the market will rise.
If you would like more information on our Detroit properties please contact Mike or any of the Global team.
