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Saturday, April 2, 2011

South Lyon - a market that refuses to die...

The South Lyon/Lyon Township market has proven to be remarkably resilient in the face of the worst recession since the Great Depression. much of last year found the South Lyon market on an upward trajectory in median sold values and inventory. Near the end of the year, when most other local markets tanked, the South Lyon market stubbornly refused to be dragged down. It stabilized and has been bouncing along at that level every since.

Real Estate Market Chart by Altos Research www.altosresearch.com

A good part of the ability of this market to continue to prosper is based upon the fact that is was the fastest growing new-build market in the area before the bust. There are still new subs being built there and even though most slowed to a crawl in the depth of the recessison, most developers there did not go bankrupt, so they are still building as we come out of the recession. Many other areas saw developers and builders exit the business and leaving unfinished projects in the lurch.

The Lyon/South Lyon area also benefits from its location out along the I-96 corridor. It is relatively easy to access I-96 and get to where ever one wants to go from South Lyon. It is also perhaps feeding off buyers who work in the Brighton area, since it is right next door to Green Oak and Brighton Townships.

So far in 2011, 54 homes above $20K have sold in the Lyon area at an average price of $89/Sq Ft - well above surrounding areas and an SEV multiplier of 1.8638, also well above neighboring townships. South Lyon has had a lower percentage of distressed homes sell, too; which helps keep those numbers up. It is currently running at only 32% of all sales that are distressed, about half the rate of neighboring townships.

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