Detroit is one of the hottest markets in the US nowadays, as bidding wars, better listings and increasing competition has become commonplace. In a report on cnbc.com, much of the focus is on suburban housing in Detroit while the downtown area of central Detroit has not developed at all.
According to Century 21 Town & Country Detroit real estate agent Jenilynn Estereicher said, "There's still distress in the downtown market. It's not affecting the suburbs. The suburbs of Detroit are beautiful, very well-maintained. The schools are fantastic, the whole environment."
The divide between downtown and suburban Detroit is wide as it is deep. The average price of a home in Metro Detroit area is just $21,102 while the average price for a home in the suburbs is at $162,900. The figures were obtained from Realcomp, the Detroit area's multiple listing service. According to the same service, downtown Detroit's sales declined by 8 percent in June 2015 compared to 2014 figures. In comparison, the suburban figures showed an increase of 13 percent overall.
In another report from detroitnews.com, the National Association of Realtors have identified Metro Detroit and Ann Arbor as amongst the top ten hottest real estate markets in the United States. Ann Arbor was ninth overall followed by Metro Detroit.
According to the report, the main factors for the rise of the Detroit area market are the improvement of the economy and the increase in consumer confidence. Home prices have been continually increasing while foreclosures continue on their decline. Many home purchasers who have been sitting in the sidelines after the recession have seen the recover as sufficient development to convince them that now is the time to purchase.
For June, the sales of homes in the Metro Detroit area have increased by 13.3 percent while median sales prices have jumped by 9.3 percent. According to Realcomp II Ltd, which cover the counties of Wayne, Oakland, Macomb, St. Clair, Livingston and Lapeer, sales went up by 14.1 percent. While the number of listing in the area grew by only 2 percent, the two factors have driven the median price to a record high of 10.3 percent.
