Metro Detroit Real Estate Market Becomes Competitive Amid Coronavirus
The COVID-19 pandemic has created an enormous level of economic uncertainty. Businesses are struggling, millions are underemployed, and a possible eviction crisis is looming.
But the housing market, both nationally and in Metro Detroit, has seen steady growth. Like the majority of the economy, it has largely been shut down for several months beginning in March. Since then, it has continued to climb every month.
After months with no in-person showings, the summer months saw homebuyers rushing out of the gate to make offers creating a new, more competitive landscape.
Jeanette Schneider, executive vice president of Remax of Southeastern Michigan, said in many cases, people are getting multiple offers and the competition is high.
When real estate opened back up, buyers came out in full force, but sellers have been more tentative. “When you just don't have enough of the supply, buyers will start to outbid each other," Schneider said. If you're a seller, Schneider said she's confident you'll find buyers.
Because the inventory hasn’t been there to support the demand, prices in the market are rising, James Yugovich of The Yugovich Group at eXp Realty explains. “I’ve seen bidding wars leading to offers of $20,000, $30,000 and $40,000 over asking.”
The course of the pandemic will shape the future of the real estate market for the rest of this year and into 2021. If the economy rebounds, more buyers and sellers will come off sidelines and into the market.
Real-estate prices are rising and houses aren’t staying on the market for long in many areas in Michigan, exciting sellers when they realize how much they can make on their homes.
