As prices settle and the inventory of foreclosures begins to decline, buyers and investors are moving in to pick up deals throughout the Detroit area – especially in the condo market. Around the metropolitan area, sales of existing units bumped up more than 12 percent in February, compared to February in 2007. In the city of Detroit, the number of units sold in February skyrocketed up nearly 50 percent, according to the Detroit Free Press website. February's increase marks the third consecutive double-digit sales increase for the Detroit area. In December, monthly sales were up 34 percent for both condos and homes; meanwhile, January reported a 15 percent hike in sales.
Could it be that the last few months' surge could be the sign of the turnaround in Detroit? Other cities in the Rust Belt state are seeing the same statistical increase. Grand Rapids listings have dropped so far this year, and sales have jumped nearly 20 percent from February to February. Dropping inventory and rising sales is a typical precursor to a more equal, or even a seller's market. Let’s all hope that is the case. It helps that a number of new-build condo projects stalled out, so there has been less new inventory pumped into the market lately.
I have certainly seen a pickup in buyer activity lately, so much so that I’ve been working harder and longer each day than I have in months - too long to get time to post to my blog many days. That’s a good problem to have. I’d love to stay and chat, but I’ve got to run. I have two closings this week to finalize and two next week. Things are popping! I'm sure that a part of this is the normal "spring surge" of pent-up demand from the dreary winter months, but a part has to be the market finally taking a turn towards more balance between buyers and sellers. I have the feeling that once we get the current overhang of foreclosed properties out of the way, things will return to some semblance of normality.