Spring has sprung and so has the market! Throughout the last few months, home prices have continued on a positive trend despite the continued lack of inventory.
Housing inventory hit a new low in the first quarter of 2017. While homeowners are seeing improved equity in their homes, it appears that not many are looking to trade their homes as quickly as once before. In the past, buyers have stayed in their homes on average six to seven years. NAR now reports that the average person stays in their home nearly 10 years.
While buyers are remaining in their homes longer, not everyone will stay put for that long. Millennials, who are finally moving into their first homes, are more likely to rent out their home instead of sell it in the future, according to a recent survey. More good news for Millennials in the market, 33% of Millennial homebuyers are moving to urban areas and 20% are buying in rural areas.
Areas of Metro-Detroit have seen home values rise nearly 7-9 percent over the last three years. Oakland County homes are selling for an average of 4 percent more over last year while homes in Wayne County are selling for an average of 12% more.
In Michigan, and the country in general, the economic data continues to be very good. March had a job growth of 98,000 jobs, albeit a bit weaker than what was expected. The April job report is expected to be much stronger. The unemployment rate is down to 4.5 percent, the lowest since May 2007.
Given that economic data, we are likely to see the Federal Reserve increase rates again in June reflecting a very strong and healthy economy. By the way, I said it was likely to rise in my Coldwell Banker Weir Manuel blog back in January