It is clear in Oakland County, Michigan inventory is scarce and the need for new homes could be the cure. We have seen the inventory of homes for sale in Oakland County, Michigan drop 28.7 percent from 5,575 on the market to 3,976 in the last few months. The numbers show that inventories are fading, but prices are increasing with many areas are now above their pre “Great Recession” (2007) prices, but the issue still is inventory for many home buyers and with home sellers wondering if they will find something to purchase.
New Homes Underway
On the brighter side, there is a 8 percent of an increase in new home building permits, which means more new homes will be constructed and a great example is the new homes being constructed in the Rathmor Park subdivision, 51500 Ten Mile Road, Lyon Township, Mich. with the going price in the 500k area which is a bit out of the average home buyers budgets. In The Walled Lake area we seeing more affordable new homes being built in the Glengary Hills area that range from 349k to 450k which is more affordable to many new home buyers. These new construction projects are going to help in the long run but will take time to ease the tight market we are experiencing in Oakland County, Michigan as other projects for building new homes get underway.
Home Builders Will Take Advantage
Generally speaking, there are fewer homes available to buy right now than is considered normal. And though conditions will differ from one market to the next, when inventory is an issue, it leads to competition and higher prices. That’s because, there are too many buyers vying for the number of homes currently available. But when there are more buyers than there are homes for sale, conditions are also ripe for builders. And typically, they’ll take notice and build more homes to accommodate those buyers.
Based on recent readings of the National Association of Home Builders’ Housing Market Index – which measures builders’ confidence in the market for new homes – that may be where the market is right now. For example, builders confidence has been at or above 70 for four consecutive months, on a scale where any number above 50 indicates more builders see conditions as good than poor. And most of their optimism is based on market conditions and their expectations for future sales, rather than current traffic. Which means, builders see an opportunity in this year’s market and may begin ramping up construction of new homes. If that happens, it’ll provide more choices for buyers and help slow spiking price increases. More here.
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