Real estate sales are surging in the metro Detroit area, but one thing remains constant: It’s going to be hard to find a buyer.
According to data from Zillow, Michigan real estate sales in metro Detroit have been flat or declining since the start of the year.
But in the last three months, those sales have been up by 17.6%.
And that’s not even including the nearly 1,500 properties that were sold in January, which also saw a sharp increase.
Zillows sales have actually been on a roll lately, with sales up 8.7% over the same time period in 2015.
The Detroit metro area has experienced record sales in the past two years, and a lot of those sales came in the form of new homes, not condos.
So it’s a big market for new and existing buyers, and some of those new homes are going to have to pay a premium to make it to market.
That said, some experts think that the housing bubble may not be going to burst any time soon.
Here’s a look at the potential housing market bubble.
Who’s buying Detroit real estate?
There are a lot more buyers than sellers in the Detroit area.
According Zillowed’s data, the area is home to about 1.3 million homes that are either listed for sale or under contract.
Those homes, however, are all owned by people who don’t own them.
That means a lot people are buying houses in the area, and they’re paying a premium.
That may help explain why prices in the region are still up by so much.
Zellner estimates that, over the last five years, the average home price in metro Wayne has risen by more than $1,000.
And those prices aren’t all that much lower than the average price in many other parts of the country.
So people are willing to pay much more to buy homes in Detroit than they are elsewhere.
But many of those buyers aren’t going to move into a house in Detroit because the market isn’t hot enough to justify the extra money.
That’s where Zillower comes in.
The real estate company tracks a lot different types of properties, like condominiums, single-family homes, townhouses, and single-room-occupancy (SRO) units.
Zills data shows that while the number of condominium units sold in metro Michigan has steadily declined since the beginning of the decade, the number in the city of Detroit has jumped.
In other words, a lot older condominium homes are still on the market in the market for a new owner, and the ones that are selling at record prices are selling for much less than they used to.
That explains why Zillowers figures don’t necessarily include condos that are under construction, which is the case for some older homes in the Michigan market.
So while a lot can happen over time, ZillOW still estimates that metro Detroit’s housing market will continue to remain under pressure for the foreseeable future.
What about the next wave of demand?
If the market continues to grow, a new wave of buyers could come in.
Ziller predicts that the next 10 years will be extremely hot for home buyers.
According with Zillowing, Detroit is currently the fastest-growing market in America, with new homes adding nearly 9 million units between now and 2031.
And if the metro area keeps up its current pace of growth, the total number of homes under contract could be up to 10.5 million.
ZILLOW estimates that this is just the tip of the iceberg.
Over the next few years, demand for homes is likely to continue to expand across the country, and it’s important to note that these new buyers aren-t necessarily new to the metro market.
Zillianov says the number who buy new homes in metro-Detroit could be about 50% more likely than the number from other parts in the country to purchase new homes.
But Zillowitz believes that the metro population is set to remain relatively flat for the next five years.
The average age of metro residents is set for the longest period of time in history, and Zillov says that that demographic will continue in the near future.
If those numbers continue to hold steady, Zellov predicts that Metro Detroit will have the largest number of housing sales in America in 2026.
What does this mean for Detroit?
The metro area is a huge, sprawling, and diverse market that has plenty of room for growth.
But what if Detroit loses some of its recent momentum?
According to Zillowski, there is a strong chance that metro-DET could see a spike in the number that sell their homes in order to sell them on for a much higher price.
But that spike could be gradual, and not one that will affect the entire metro area.
Zilow thinks that the surge in demand will be gradual enough that it could be seen by metro residents by 2027.
But, according to Zellowski, that spike in demand may not