Mid-Michigan has always been a nice place to live. Unfortunately, the area’s housing market took a hit when the financial crisis hit in 2006, but could the area now be showing signs of recovery?
Recession Hurt the Area
When the financial crisis hit, housing prices plummeted and many people were left upside down on their mortgages. An additional side effect was a true wave of foreclosures, leading to many people losing their once valuable homes.
Demand is Now Up
Now, almost a decade later, the demand for homes is back at an all-time high. Recent trends show that it is not unusual for real estate agents to get multiple bids for the same home. This increase in demand is accredited to the stabilizing financial market.
Supply of Homes is Down
The higher demand for homes is not met though, since there are fewer properties available in the right price range ($100,000-$150,000). Even though there are a considerable amount of expensive homes, the homes that people are looking for are not widely available.
Not having enough affordable properties going around has led to intense bidding wars. These bidding wars also have had a direct consequence for the housing prices, causing them to go up dramatically over the past two years.
People are ready to buy again, unfortunately the supply is no longer present. With demand rising, the chance of young couples obtaining a good property is decreasing. However, with the housing market slowly stabilizing, there may be suppliers coming to the scene in the future.