The local Michigan real estate market continues to follow the trends that were shown in the charts below which were based upon Q4 data from 2012. As will most reports that I get, whether local or from a national source. The data is always weeks or months old. Still the data show trends that develop over time and don’t just change overnight. Different areas of the Michigan market may be on different points of the rend curve, but they are all basicallt following the same trends.
This chart shows how the key supply and demand factors are influencing values. The purple line is value per square foot, which shows an accelerating growth rate. This is a direct result of both the accelerating decline in inventory (blue line) and accelerating increase in home sales (red line). Also adding fuel to the fire is a deceleration in new homes coming on the market (green line).
It is interesting to see how far we have moved in the market. The following charts trace the 4th quarter activity at key dates in our market transition. 2004 was that last strong real estate year and one of the peak value years. 2008 was the peak in terms of homes for sale, causing values to start to decline. 2011 was the bottom in terms of home values. Last year showed the value rise off the bottom.
So, we are on a positive trend in every market, but we have q good ways to go to get back the value lost in the recent recession. For many, who did not buy at the peak or refinance and take out their equity, the quick run-up of prices has put them back above water and able to look at getting on with their life plans.