This year has certainly been one for the record books no matter how you look at it. Things were no different in the real estate world, where we saw the market quickly rebound following the two month-long COVID shutdown. Thanks to a special report from Real Estate One, we’re able to take a deeper look into the 2020 Michigan real estate market.
I helped multiple sellers and buyers in Lafayette Park throughout 2020
So what helped propel the post-lockdown rebound? Historic low interest rates and high demand, which according to Real Estate One, have virtually eliminated the typical seasonality found in the market. Even today, 30-year fixed mortgage rates are hovering between 2.5% and 2.875%.
The under-$500k market made up a whopping 93% of total sales in Southeast Michigan, with buyers facing an extremely competitive market. One thing COVID did do was slow down the arrival of new listings. In fact, there was a 55% decline in inventory for the under-$500k market and 35% decline for the over-$500k market.
This home in Grosse Pointe Woods was only on the market for 1 day before accepting an above ask offer!
For those properties under $500k, monthly showing stats have been up 30% since June, with a slight dip coming in November. Since reopening in May, it has been reported that new pending sales have been outpacing last year by 35%. We have also seen the price per square foot increase by 8% up to this point.
Condo sales were slower in Detroit this past year, but units were still moving.
As 2020 draws to a close, one thing seems to be certain – the real estate market in Southeast Michigan will remain hot in 2021. Mortgage rates look to be holding steady at record lows and housing inventory remains on the low side as well, making 2021 an ideal year to consider selling your home!
I hope you’ve had a wonderful holiday season and I look forward to working with you in the new year!
Remember, you can always reach me at 313-617-2699 or LT@LizInDetroit.com if you have any questions about the Detroit real estate market.
