New construction

The real estate market has hit 10-year highs in Southeast Michigan. This is news to celebrate for anyone buying or selling a home in the area. One of the main problems we see everywhere is the lack of enough inventory for more home buyers. If you are one of those buyers, have faith!

Here are some stats published by the Southeast Michigan Council of Governments (SEMCOG) on new home permits.

Last year, 9,925 new residential buildings were authorized last year, including single-family homes, condos, and apartments in the 9 counties surrounding Detroit. In addition, new construction is up 11 percent so far in 2017. This time last year, the increase was only 7 percent.

We had a healthy economy in 2016, with only a 5.2% average unemployment rate and a 2% growth rate in jobs overall in Michigan.

Low Inventory of Homes

The four county areas - Wayne, Oakland, Macomb, and Livingston - have had the lowest inventory of homes and been most active in the SEMCOG data. Meaning, more people are looking to buy and sell homes in these areas. Houses in many communities are spending an average of 35 or fewer days on the market.

Novi had 232 new single-family homes built there last year. One of the builders doing work in Novi is Toll Brothers, building in four different communities around the city.

Lyon Township had 312 new residential units in 2016 and more development is in the works. One project at Erwin’s Orchard may be starting up this year.

Other counties on the top 10 list for new construction according to SEMCOG:

  • Commerce Township - 266
  • Brownstown Township - 266
  • Shelby Township - 282
  • Rochester Hills - 372
  • Canton Township - 505
  • Macomb Township - 516
  • Ann Arbor - 545
  • Detroit - 1,098

According to the Home Builders Association of Michigan, 2017 is looking like the best year since 2006 if it continues the way it has. While this does not return us to pre-recession highs, it is a steady upward trend. The forecast is good through the fall, which means if you’re looking right now and haven’t found something, you should keep looking. There may be more housing available as the summer progresses.

The other thing to keep in mind is that, while there are more single family homes being built, the net gain of new condos being built is 44%. Condo living is actually very attractive for many buyers - with single floors and wide doorways and many amenities the single-family detached home doesn’t have.

Take Away

The new home forecast is looking great for 2017 as job market conditions continue to improve. New home construction looks like it will continue through the summer and fall in some of most sought-after areas in Metro Detroit.

If you are looking for a new house in Northville, Novi or the South Lyon areas, please give us a call. We would be honored to help.

248-348-7200