DETROIT (FOX 2) – After a frenzy in the spring that led to houses having dozens of offers within a matter of days, the Metro Detroit real estate market is starting to calm down.
“Because of COVID it was quite different and we had such a big booming sellers’ market,” said realtor Leslie Mihalak.
Some areas are still seeing the demand that was present in the spring, such as lakefront properties and homes in walkable areas, but the number of offers going into homes has decreased.
In the spring, some homes were receiving 30-40 offers. Jeanette Schneider, the president of Remax of Southeastern Michigan, said it’s about 5-7 offers now.
“We’re still potentially getting multiple in some cases, but it’s not the frenzy that it was earlier in the spring,” she said.
In the spring, several factors, including a housing shortage, were leading potential buyers to believe they would miss out if they didn’t try to buy at that time.
“Emotions have kind of calmed a little bit,” Schneider said.
She said she believes that a return to normalcy has also helped to relax emotions.
While the market is changing, there is still a housing shortage. According to Freddie Mac, there was an inventory shortage of 2.5 million houses in 2018. This year, there is a 4 million house inventory shortage.
However, interest rates are still low and it doesn’t appear that they will be rising much in the near future.