Surprising Michigan Real Estate Statistics & Trends in 2016
Michigan realtors have seemed to reach a consensus about the housing market in 2016: it’s a seller’s market. Conditions for purchasing a house are becoming ideal, with buyer’s getting more square footage for their money, and taking advantage of the healthy Michigan housing market.
Supply is Low
2016 is a seller's market, and that means that houses are moving very quickly. The amount of homes on the market is usually measured in the months of supply. This is how many months it would take for all homes on the market to sell at the current rate. In 2012, there was a 9-month supply of homes in the Greater Lansing area. In 2014, there was a 7.3-month supply. 2016 carries a 4.13 month supply, which means that houses are moving faster and buyers can’t sit on their hands.
Renting Isn’t Worth It
Real estate values are expected to grow during 2016 by a total of 3.5%. Despite this, renting continues to be more expensive in the current market. Real estate values would have to rise by around 6.5% to equal the cost of renting in the United States. Unless real estate values spike unexpectedly, buying will be a smarter financial move than renting.
Prices are Rising, but Steadily
Although Michigan housing prices are increasing, they are doing so at a slow and controlled rate. Price changes have calmed enough that certain Michigan cities have been considered the safest housing markets in the country.
Nationwide insurance conducts a review of the healthiest housing markets, which analyzes housing markets based on current health indicators among 400 metropolitan areas in the United States.
Their report ranked Lansing and East Lansing, along with Benton Harbor and Saginaw among the top 10 metropolitan housing markets in the United States, for the first quarter of 2016. The factors that Nationwide used to determine this included solid employment growth, healthy mortgage market fundamentals, and sustainable housing price gains in all of these areas.
Lansing has Value Advantage in Michigan
Locations in Lansing saw a sharp drop in median listing price per square foot in 2015. According to Realtor.com, before mid-2015, the median price per square foot of Lansing homes was $60, dropping to $50 during 2015. The price per square foot continues to sit at $53 which is a considerably better value of square footage compared to Michigan’s median of $68.
Michigan has a low-supply of housing in general, but in 2016, it will be smart to be prepared to buy quickly. Rates are moving slower, and the Greater Lansing area housing market is in an extremely healthy position.