Hot Detroit, Hotter 2017.

insider 01_25_2018

Photo Source: Instagram via @bhg.homeservices

2017 saw the best existing home sales year since 2006. Existing Home Sales for the month of December were down slightly more than expected but November’s figure was the best in 11 years so this pullback—any pullback, really—was expected. Despite the decline and the low inventory, 2017 finished with sales up 1.1% from 2016—the high demand is still there. First-time homebuyers made up 32% of these sales in December.

New Home Sales for December were down 9.3% but this also came off November’s strong month that had the best number in a decade. This slowdown in pace did allow for the inventory of new homes on the market to increase 3.9%.

The Federal Housing Finance Agency (FHFA) Housing Price Index was up 0.4% in November. Shocker, home prices continue to rise.

Are factory-built homes the answer to low inventory? The Smart Home Company LLC has developed a few of these homes and planted them along West Michigan. They’re built to be energy-efficient with smart design features and 2 or 3 bedrooms to target millennials. They’ve become a popular choice for investors and there’s been a demand increase from such developers.

Millennials, the generation of avocado toast and craft beer, are big money savers—much more than in 2015. Sixteen percent of millennials have at least $100K in savings and 47% have a savings of $15K. Student loans aren’t holding them back. Why the focus on savings? In case of an emergency, retirement, and to buy a home are the top three given but many still believe they aren’t saving enough.

Detroit listed among cities with highest percentage of millennial homeowners. Detroit also remained on the list for 20 Hottest Markets in America for January 2018. However, California was the popular choice owning 13 of the 20 spots.

Mortgage Applications for last week were up 4.5% overall, with both purchases and refinances posting increases.

Initial Jobless Claims for last week reported at 233K. January is expected to show a strong Jobs Report.


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