Scott Adlhoch, Real Estate Agent and Expert. More than 25 years of experience and has helped people buy and sell more than 10,000 homes in the Grosse Pointes, Detroit and greater Metro area.
The past year was a very good year for the housing market in Sothern Michigan. In order to ensure that the buyer’s demands are met this year, there is need for more inventories.
There are also new constructions that are going on in the region and there are high hopes that 2019 will be a good year, if not better than last year. Here are some of the top trends in the housing industry in 2019, as listed by Scott Adlhoch.
1). The struggles with inventory are set to continue – In 2017, there was a shortage of homes on sale in the region and this was the dominant theme. In 2018, this is set to continue as the current inventory stands at 2.4 month’s supply. For there to be a balanced market, a 6 month’s supply is required. This shows that there is a deficit that needs to be filled and new homes for sale have to be built. This way, it will be possible to keep up with the very high demand from home buyers. However, there is hope since the HBA of Southern Michigan did their statistics and ranked last year as the best year for construction of residential homes in the region since the year 2006.
2). The changes in taxes are not expected to make a huge impact – The tax bill that was passed recently is not set to bring any impacts on this sector. It even gets better because the buyers and home owners are expected to benefit from the tax bill. However, the people looking to buy homes in this region are advised to consult their financial advisors. This is because even if the bill has no severe impacts, you may be among the few that are impacted by the bill. The same case also applies to people looking to sell residential homes in the area.
3). There will be a change in the buying patterns – There will be a change in the preferred housing that people are looking to buy this year. The traditional colonial designs of homes will be replaced by ranch-sized homes. Due to the change in preference, the prices of these different houses will greatly change and the value of ranch homes is set to increase in value. At the same time, the buyers who shy from buying homes in Southern Michigan due to lack of inventory will move to other locations like New Hudson for more affordable options.
4). There is an expected rise in fraud – Over the recent couple of years, homebuyers have been the most vulnerable target for hackers and thieves. The emails are sent from the hackers to the home buyers and they convince them that they are the company or individuals selling the house. The unsuspecting buyers then fall into the trap and wire the funds to the hackers and they end up losing their home and their money. While this trend has been continuing for several years now, the bad news is that it is not going to end soon. How buyers should therefore be very keen and carefully consult with their money advisers when buying a house.
5). There is an expected rise in home sales – Last year, the home sales rose by 5.2% and this rise was attributed to things like high confidence among the home buyers and even the strong job and economy market in the region. Due to the rise in these two factors, the sales are also expected to increase in 2018.
Conclusion: Scott Adlhoch real estate industry in Southern Michigan recorded its top performance in last year. Statistics and the top trends show that this year is set to be a good one too. The guide above gives a list of the top trends in the industry to look out for in 2019.