Detroit had a rollercoaster year last year with many ups and downs, it seen the re-opening of nightlife and restaurants but also seen the closure of many small business due to the after math of the pandemic.
2022 is full steam ahead for Detroit, with the revitalization of long-abandoned historic landmarks to affordable housing developments, safer streetscapes, urban forests and exciting new projects across the city, there is a lot to look forward to in 2022.
Detroits new development projects include.
Joe Louis Greenway: A 27-mile loop for biking and hiking, starting at the Detroit Riverfront and passing through Dearborn, Hamtramck, and Highland Park.
Ford’s Mobility Innovation District: A walkable 30-acre Corktown campus next to the renovated Michigan Central Station that will serve as the automaker’s hub for research and development for a range of new mobility products, from self-driving cars to non-gas vehicles.
Love Building: Once this space is completed, the Allied Media Projects will share it with Detroit Community Technology Project, Detroit Disability Power, Detroit Justice Center, Detroit Narrative Agency, and Paradise Natural Foods to promote unity and social justice in the community.
Dreamtroit: A mixed-use development with 81 apartments and 38,000 square feet of commercial space.
Osi Art Apartments: A colorful, four-story, 30-unit housing complex in Woodbridge, half the units are set aside for people with household incomes of less than $60,000 and commercial space is available for rent.
Former Michigan State Fairgrounds turn to Amazon Distribution Center: 142 acres, 78 of which are currently being leased to Amazon, will be turned into a distribution center that will employ approximately 1,200 workers.
All of these new developments are having a positive impact on the housing market, the Detroit housing market is seeing traditional seasonal trends, which may present a window of opportunity for buyers looking to invest in rental property in Detroit.
Of the 180 neighborhoods in Detroit, the most expensive neighborhood to buy a home is Boston Edison West where the median listing price is $305,000. The highest residential sale in Detroit was recently recorded, the Fisher Mansion at 1771 Balmoral in Palmer Woods recently sold for $4.9 million to Stellantis North America COO Mark Stewart and Antonio Gamez Galaz.
But we do need to take into consideration the soaring inflation rates, we see a 8.5% inflation rate, being the highest seen in the past 41 years. There also has been an increase in interest rates, in just the past 60 days we have seen mortgage rates for a 30 year fixed climb from an average of 3% all the way up to 5.13% for a new mortgage. But no matter how you look at it 5.13% is still a decent inters rate, it has risen to nearly 7% , there might be a slight decrease in buyers in the real estate market, but not enough to cause any sort of a ‘bubble burst like we seen in the past.
This is why now is the time to buy in Detroit, with so many developments taking place its attracting new residents to the City, this is pushing up rent prices, even with interest rates beginning to rise, by waiting a year for rates to drop back down near 4%, the increase in home values will cost you more than the increased interest rate.
In fact, higher rates could be contributing to a sense of urgency for buyers to find a house before rates rise further, although one different than the “fear of missing out” urgency that was more common last year and the year before following the initial surge of COVID-19. “The fact is for every house that hits the market, there are at least four or five buyers that are attempting to get it,” said Realtor Teri Spiro, president of the Greater Metropolitan Association of Realtors. “The shortage of entry-level housing is really almost catastrophic
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