DETROIT (FOX 2) – After the spring frenzy that saw homes receive dozens of bids within days, the Metro Detroit real estate market is starting to calm down.
“Because of COVID, things were different and we had such a large, fast-growing market for sellers,” said realtor Leslie Michalak.
In some areas, there is still demand that was in the spring, such as lakeside properties and homes in pedestrian areas, but the supply of homes has decreased.
In the spring, some houses received 30-40 proposals. Jeanette Schneider, president of Remax Southeast Michigan, said there are now about 5-7 proposals.
“In some cases, we can still potentially get a few, but this is not the madness that was earlier in the spring,” she said.
In the spring, several factors, including a housing shortage, led potential buyers to believe what they would be missing out on if they didn’t try to buy at the time.
“Emotions have calmed down a bit,” Schneider said.
She said she believed returning to normal life also helped ease her emotions.
While the market is changing, there is still a housing shortage. According to Freddie Mack, in 2018 there was an inventory shortage of 2.5 million homes. This year, the inventory deficit is 4 million homes.
Interest rates are still low, however, and do not look like they will rise much in the near future.