Troy-based real estate firm Re/Max of Southeastern Michigan today announced its annual housing outlook for 2018 for metro Detroit. The report indicates that while inventory struggles will continue, home buying patterns will change and overall sales are expected to rise.
“(Last year) was an excellent year for southeast Michigan’s housing market,” says Jeanette Schneider, vice president for Re/Max of Southeastern Michigan. “More inventory is currently needed to meet buyer demand, which is expected to remain strong throughout the upcoming year. However, we are optimistic that new-home construction is growing in this region. All indicators point to another strong year for our local housing market.”
Specifically, housing shortages are expected to continue through 2018, with metro Detroit’s housing inventory currently at a 2.4-month supply. A six-month supply is considered a balanced market.
The report also indicates a shift in home preference from colonial-style homes to ranch-style homes as baby boomers downsize and look to keep everything on one level. This trend will impact buying patterns and pricing, with ranch homes expected to increase in value as demand rises. Additionally, buyers discouraged by a lack of inventory in popular metro Detroit communities are expected to expand into New Hudson and Macomb County due to a more extensive selection.
Overall, home sales are expected to increase, following a 5.2-percent gain in 2017. The uptick is attributed to high consumer confidence, pent up buyer demand, and a strong economy with a robust job market.
Re/Max also notes that homebuyers have also become increasingly susceptible to hackers who fraudulently represent themselves as real estate agents or title companies. In 2016, the FBI’s internet crime complaint center reported a 480 percent increase in this type of fraud and industry experts believe the 2018 will see increases in this activity. Re/Max encourages home buyers to confirm payment instructions with their agent and title company directly to prevent theft.
Re/Max of Southeastern Michigan currently employs more than 900 sales associates at 50 offices in Macomb, Monroe, Wayne, and Oakland counties.