What experts say 2023 holds for Detroit real estate
Fluctuations in metro Detroit's real estate market could continue to perplex buyers and sellers considering a move this year.
Yes, but: The market is starting to cool off. Factors like normalizing interest rates and less competition among buyers are expected to create more buying opportunities.
What they're saying: "Right now with the market like it is, you can offer a little bit less than asking. Several months ago you were paying over asking price," prospective buyer Jason Justice told WXYZ Channel 7.
The big picture: A housing market crash likely isn't coming for Detroit.
- Here's what local experts say to expect instead:
Home price trends might vary
Surging rental prices and lack of quality options have turned renters into potential buyers, says Darralyn Bowers, owner of Bowers Realty & Investments.
- The shrinking rental housing market will create more demand in the for-sale housing market, which should keep prices from declining overall.
Meanwhile, Gino Tozzi of Real Estate One predicts home sale prices will vary by area.
Buyers and sellers will each face different challenges
James Danley of James Danley & Associates says 2023 will feel more like 2019.
- There's going to be fewer transactions, which is "challenging for buyers looking for updated housing, and for sellers that have dated or imperfect housing."
The number of home sales will stabilize
"Inventory will continue to stay limited, but as interest rates become less volatile and normalize, more buyers and sellers will test the market instead of delaying the inevitable move," Tozzi says.
- The large declines in home sales we've seen will flatten in 2023 and into 2024, he added.
Conditions will be easier for buyers
Bowers says that despite the lack of affordability, buyers won't have to jump through as many hoops — like offering over asking or adding closing incentives — to win an offer on a house.
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