Looking to sell your first house in Detroit can be pretty tough, especially considering the constant changes in the real estate market. You might find yourself a bit overwhelmed with all the factors that need to be taken into consideration, whether it be market pricing, financial health indicators, supply, and more! Luckily, you can refer to our quick breakdown of real estate trends in Detroit, Michigan so all the tools you’ll need at your disposal can be easily accessible. Real estate market news flies by quickly in Detroit considering how volatile the market is, so make sure you’ve taken our pointers into account before making a big real estate decision.
Unemployment Is Still A Major Problem In Detroit
Like many cities across the United States, the Motor City hasn’t been exempt from hard-hitting unemployment rates potentially due to the COVID-19 pandemic. Take into consideration that just last May 2020, the unemployment rate in Detroit was at 24.8%. That’s quite troubling considering that the national average was at 13.3%.
On the upside, Detroit seems to be making a steady recovery given the latest statistics as of March 2021. The unemployment rate is now at just 4.5%, which is significantly lower than how they fared last year, and this is still lower than the national average of 6%.
The Motor City’s Real Estate Prices Are Still Below Average
If you have already encountered customers looking to acquire affordable homes fast, this is great news. While selling, consider that you will be working with a median home price of $160,000. This is below $353,000, which is the national average. Pricing can then be more flexible and marketable to individuals or families looking to move to Detroit as soon as possible.
The Housing Market Is Somewhat Competitive In Detroit
Partly because of its pricing and general location, a lot of homes in Detroit are selling quite fast for low prices. You’re going to be competing with houses that will sometimes get turned over within the span of 23 days, selling at 3% below list price. For homes that are hot on the market, you can expect them to sell at 3% above list price in a 7-day pending period. This is good in the sense that you’ll likely sell your Detroit property quite fast, but it helps to stay vigilant so what you’re selling doesn’t get looked over for other properties.
Detroit Rental Vacancies Are Up This Year
Are you looking into a buy-and-hold strategy for your property? If you are, consider that rental vacancies in Detroit are currently much higher than the national average of 6.8%. As of March 2021, we are looking at a rental vacancy rate of 8.7%.
What does this mean for investors? Looking at the numbers, consider that you might be looking at vacancies that may be a bit harder to fill, so rental rates must be adjusted accordingly. Be prepared for longer turnaround times between tenants as well.
Even When Detroit Home Prices Go Up, Buyers Aren’t Deterred
Fluctuating price increases are normal, but in a location that is quite affordable like Detroit, you’d think that buyers would turn away. However, the exact opposite is happening! According to Jeannette Schneider of Southeastern Michigan, even though home prices were up in April 2021, houses would go from “for sale” to “pending” in a matter of days. Not surprising, considering that home sales are up by 45.2%.
Given the data, the answer to the question, “Can I sell my house fast?” is a resounding “Yes!” if you’re looking to sell in Detroit, MI. We advise sellers to strike while the iron is hot, and start marketing their properties for sale to the right customers who are keen on investing. Residents are moving into the state as quickly as they can, so you gotta be sure to catch up!
If all this makes you all the more excited to start selling your property regardless of its condition, make sure to contact us at Select Home Solution, where we buy houses fast for cash. Filling up the short form on our website won’t take five minutes, and we’ll be keen to help you instantly.