Oakland County’s luxury home market is booming

Oakland County is a luxury home buyer’s dream for a number of reasons, real estate agents agree. It’s ideally positioned near major cities such as Detroit and airports, but the county also offers cities that feel rural or suburban. The housing stock is extremely diverse, from high-end lofts to century-old houses to new constructions. It is also home to leading educational institutions and close to Michigan’s top universities.

Residential real estate in Oakland County, especially at the luxury level, will also benefit next year as Michigan is likely to attract new residents from cities like Chicago and New York who are looking for more lifestyles. calm or downsizing as they seek to retire. , Real estate agents said.

Nationwide, new home sales and housing starts are at their highest level since 2006. Even more telling is that the supply of homes for sale is at its lowest level since the 1970s. According to Goldman Sachs Research, competition between desperate buyers for what homes are out there and a low interest rate environment has pushed prices up 12% over the past 12 months – and this trend is expected to continue until the end of the year.

Falling interest rates have also had an impact on luxury homes. Brundage said $ 1 million to $ 1.5 million homes were often paid for in cash in the past. Now buyers are taking out a mortgage because they can make more money by leaving their money on the stock market, which has worked well since the pandemic.

RE / MAX of Southeast Michigan said there were 330 homes for sale priced at $ 1 million and up for March 2021, down 5.2% from last year. During this period, 34 homes were sold, which is a 36% increase over last year.

There’s a 4.9-month supply of premium inventory, and these listings spend an average of 72 days in the market. The days on the expensive home market are typically longer than most because these buyers “have that luxury of having time to sleep on them,” Bradford said, and the viewings can take longer to put in. up because buyers must prove they have financing for Properties.

Donna Barlow has lived in Oakland County for over 40 years and knows the market well. Barlow, who works as a real estate agent at Signature Sotheby’s International Realty in Birmingham, said the longer days in the market were a result of the houses themselves and the expectations of sellers. She said it could take four months to market a million dollar real estate ad, from planning the sale to staging and marketing to buyers.

The pandemic has also extended that time frame in some situations, Barlow said. She had a salesperson who didn’t want any sales signage in the yard and didn’t want anyone to come into the house unless he had a coronavirus test and he came back negative.

But she has a new list in Oakland Township that she’s working on that will likely be marketed for $ 7 million vacant, so scheduling visits will be easier. Barlow said she expected the sale to be faster and easier than others.

“A lot of people in the high end market didn’t want people in their homes. And when you have bigger homes, you have more money and bigger decisions,” Barlow said. “But we had our best year (in terms of sales) and we didn’t have any downtime. It was just go, go, go.”

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