A statewide survey shows that Michigan’s homebuilders and remodelers remain optimistic about the strength of the housing market, according to a report released Wednesday.
The Michigan Housing Index found that the third quarter index for builders was 54 (or cautiously optimistic) while remodelers were at 61 (or optimistic). The perspective was in line with the previous quarter.
“The continued strength of the housing market shows how far the recovery has progressed in 2013,” Robert Filka, CEO of HBA Michigan, said in a statement. “We’re seeing a lot of newer families and young professionals that delayed entering the housing market for a few years are now making home purchases.”
The strong showing in the Michigan Housing Index has been validated by a sharp increase in the number of housing permits during the first three quarters of the year, up 29 percent compared to the same period in 2012. The steady growth has come despite various challenges, including credit availability, rising costs for property and labor, and uncertainty over federal policymaking, Filka said.
“It is encouraging to note that most economic forecasters predict stronger growth in 2014 and 2015, which combined with the pent-up demand we know exists among consumers, bodes well for the housing market in the months ahead,” Filka said.
A further sign of optimism: The popular Homearama tour will return next year following an 11-year hiatus. The HBA of Southeastern Michigan recently announced that Homearama 2014 will be at The Pinnacle at Oaklands, an emerging luxury home community by Frank Moceri Custom Homes in Oakland Township on Silverbell, near Adams. The event is scheduled from Aug. 29 (Labor Day weekend) through Sept. 21.