Detroit is a different market altogether - Let's get to know it better!

Posted by Sabra Sanzotta on Friday, January 22, 2021 at 2:59 PM By Sabra Sanzotta / January 22, 2021 Comment

Finding

Home

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Finding Home 313 - a Detroit-centric real estate blog with facts, stories, photos, and a list of our events. Published exclusively by Berkshire Hathaway HomeServices The Loft Warehouse, about the Detroit real estate market we specialize in (and love).

AS ALWAYS, DETROIT IS DIFFERENT!

Everywhere you look, the news headlines are shouting:

"housing inventory at an all time low!" and "prepare for a seller's market, take advantage of the lowest interest rates ever!"

But that is not the whole story about the Detroit real estate market. In fact, we would like to share some facts from our exclusive Condo Market Report, to suggest that it could be the best time in 10 years for buyers to shop for a condo in the City. The raw data comes from the MLS/Realcomp, and the analysis is our own. First, there is a 10-year high point in terms of the number of condo listings on market right now. And, as the chart below shows, buyers on average are able to purchase at 9% below the original list prices.

Take a moment to review the graph below, and the supply and demand behavior, specific to the Detroit Condo market.

This is what characterizes a Buyer's Market, and it is a very little known phenomenon. The headlines of "Low Inventory - Seller's Market" have mostly drowned out what is happening in the urban center that is Detroit.

Our takeaway is that this excess inventory will be short lived, balancing out once the vaccine is more widely distributed, and pent-up demand for downtown living returns.

NEW CONDO SUCCESS STORIES

Let's take a look at two extremely successful condo developments that have beaten the odds, showing that some specific property types have been the winners in the battle for buyer confidence

spoiler alert: the most popular condo categories are currently Townhomes, and Site Condos

North Corktown 11 | www.NorthCorktown11 .com

As the project name suggests, this new construction development consists of 11 townhomes, within full view of the Michigan Central Train Station, in the up-and-coming North Corktown neighborhood. The sales model is nearing completion in the next couple of weeks. And already 8 of the 11 homes have gone pending.

There are still 3 opportunities left to secure a spot here, and prices start at $339,000. This project offers a 15 year NEZ tax abatement to primary homeowner-occupants.

Midtown EcoHomes | www.EcoHomesDetroit .com

All sold out and never even had a dedicated sales model, that's the status in a nutshell. This illustrates the point that many post-Covid buyers are choosing condos with space to live and work, private entrances, private outdoor space, and attached garages. This project was unique in the whole city in that it featured solar panels on every home, and energy-efficient, eco-friendly construction and design.

DETROIT NEIGHBORHOOD FEATURE STORY | EAST ENGLISH VILLAGE (EEV)

We've talked about how there is a very special dynamic in the Detroit condo market, but Berkshire Hathaway HomeServices is about all Detroit real estate. That means we can guide you to a deeper understanding of the dynamics going on in each neighborhood.

Our agents are scouting out the newest listings, and we have learned where buyers can get the benefit of the various property tax incentives (NEZ districts).

Here's what our agents did this week, in east English Village, for their clients:

A condo owner steps up in size to a brick bungalow in East English Village

Realtor Marianne Burrows worked tirelessly to help her young, bachelor client find the home of his dreams, where he had the space to work, live, and entertain. Here is a photo of the home, characterized by the quintessential EEV brick and stone.

Competition for the home was INTENSE, with multiple buyers submitting offers simultaneously. Marianne used some battle - tested strategies to help her client win the bid, which included an appraisal cushion, and an escalation clause. He closed on this 3 bedroom, 1700 SF home, at $185,000, which was $10,000 below the original list price.

An empty Nester couple set their mind to success and worked with Berkshire Hathaway HomeServices Realtor and Vice President Susan Leithauser-Yee, to acquire their brick and stucco Tudor style jewel box, on Harvard St., in EEV last month.

Making this deal happen required a hand crafted, full price offer, with lots of communication between the two sides of the deal. Leave it to BHHS TLW agents to be your guide in any competitive situation. We know the facts, and we have the experience to make your dreams come true.

Let's talk through your questions, on Zoom or over a cup of coffee. Our agents will run the reports for you and get you fully prepared to succeed. We will take the time to fully inform you about this ever changing and unique Detroit housing market.