The state’s most significant real estate value increases since 2009 have been observed in Detroit, which for years have seen even used cars retailing at higher prices than some properties. A notable exception to this is the sharp drop in demand for homes in ZIP code 48217, widely considered to be the state’s most polluted neighborhood.
Birmingham enjoyed a rise from $200,000 to $305,000 (over 50 percent more from 2009 figures), while Rochester Hills homes retailed for over $260,000 (47 percent more). St. Clair Shores is another of the big winners (30 percent more), with Oakland Township and Livingston County not far behind.
These developments point to the trend that most of Michigan is now seeing prices that are on par with, and even better than, pre-recession values in 2007. Industry observers said that a primary driver of this change is the state’s continuously improving economy, which has engendered low mortgage rates and high buyer confidence.
A reduced number of homeowners are experiencing crippling debt, as well. Better purchasing power per capita has stimulated more transactions involving existing homes in several counties, including Livingston, Macomb, Oakland, Washtenaw, and Wayne – which together accounted for more than 66,600 sales in 2015 alone.
In the period between 2009 and 2015, Michigan saw housing prices recover by at least 20 percent, with the greatest gains in the locales most severely affected by the recession.