|
Posted Jan 1, 2016, 7:34 PM
|
|
Registered User
|
|
Join Date: May 2012
Location: Metropolitan Detroit
Posts: 712
|
|
Some more good economic news for the Detroit Area there are also some interesting trends in home buyer patterns with "closer to town" climbing in favor and "acreage" not necessarily being a major selling point which is a reversal of trends from the previous decade and before.
Quote:
Million dollar deals: Metro Detroit's high-end home market sees best year in a decade
By Vickie Elmer
December 31, 2015
Crain's Detroit Business
This home at 1990 Oak Pointe Drive in Rochester Hills is for sale for $1.3 million.
On a cold, blustery day in late December, Kay Agney drove an out-of-state buyer to see a few homes along Lakeshore Drive and elsewhere in Grosse Pointe.
The buyers were eager to land a luxury home, and neither price tags of $1.7 million nor icy roads slowed them down. The luxury-home market in metro Detroit shows no signs of slipping, according to sales data and agents such as Agney.
"It's been an incredible year for the upper end of the market," said Agney, owner and broker at Higbie Maxon Agney Inc.
Dozens of homes in Birmingham, Bloomfield Hills, Rochester, Grosse Pointe and elsewhere in metro Detroit have sold for $1 million or more in the past 12 months — so many that the high-end home market is on track to have its best year in at least a decade, according to multiple listings service Realcomp II Ltd.
Through October, 229 homes sold at or above the $1 million mark in metro Detroit, up from the 217 in all of 2014 and 211 in 2013, according to Realcomp data pulled for Crain's Detroit Business.
A record year for luxury homes occurred in 2004, when 254 million-dollar abodes changed hands through Realcomp. But marketing manager Francine Green noted that in 2003-2004, the organization changed its data collection methodology, so it's impossible to draw a true apples-to-apples comparison. In earlier years, high-end sales were grouped in the $400,000-and-up category.
While 2015 will be remembered as a "very strong year," local agents say they are not seeing bidding wars or multiple offers for the most expensive homes. The average days on the market for homes priced at $2 million or more declined from 115 days last year to 103 days in 2015, Realcomp reported, though for those between $1 million and $2 million, days on market remained steady — declining slightly from 76 to 74 days. Both reflect year-to-date sales through November.
....
Average days on market: Homes priced in the $1 million-to-$2 million range in metro Detroit were on the market an average of 76 days, steady with 2014's sales pace of 76 days.
Active listings: The number of homes for sale in the $1 million-and-up range totaled 597 in 2015, up from 478 in 2014. The increase is considered a barometer of an improving market as more optimistic sellers list properties.
New construction: Of the 106 permits issued in Oakland County from January 2012 through November 2015, the top three communities for new $1 million-plus construction are Bloomfield Township (37), Bloomfield Hills (20) and Franklin Village (16).
....
Sales price trends are inconsistent across the region. Some communities are seeing 10-year highs while others, including Grosse Pointe, are approaching but still have not reached the pre-recession peaks.
As prices and sales gain momentum, some property owners have decided to list properties that had previously been held off the market. By November, there were 597 active homes priced at $1 million or more, up about 25 percent from a year earlier.
"That's a lot of inventory," said Jeff Barker, a broker with Max Broock Realtors who sells many lakefront properties and also West Bloomfield and Franklin homes. "As prices have increased, people are starting to sell," a reversal from 2007-2011, when most people felt prices were too low and held onto their sprawling compounds or 1920s mansions if they could.
Renewed demand for high-end homes started about three years ago. But until 2014, there were more buyers than inventory, said Brad Wolf, managing director of Hall & Hunter Realtors in Birmingham. That imbalance started tipping the other way in 2014, "with more and more listings," Wolf said.
Homes that are "closer to town or in town" are more in demand and those with three acres of land or more seem to have fallen in favor, a switch from the market a decade ago, Wolf said. "Size isn't as important as location," he said, and walkability and move-in condition make a luxury home a standout.
Zillow has reiterated in reports that "dense walkable suburbs with an urban feel" are the hot buzzwords in residential real estate right now.
|
http://www.crainsdetroit.com/article...rket-sees-best
Trends such as seeing the most high end development in a decade and the Metro Area Design economy on a comeback as well are having officials along the M-14 Corridor in Washtenaw County reversing a 30 year trend and opening up the area to development.
Quote:
Design economy on a comeback
By Vickie Elmer
September 19, 2015
Crain's Detroit Business
After a major retrenchment, the design sector of Michigan is growing again – with hundreds of new jobs as industrial designers, graphic designers, music directors and composers added since the recession ended around 2011.
Creative jobs grew with the local economy between 2011 and 2014, but, have a long way to go before reaching the 2003 levels, according to a report by Anderson Economic Group for the Prima Civitas Foundation, an East Lansing-based economic and community development organization.
There were 22,750 creative jobs in 2014, up 6 percent from 12,464 in 2011. However, it is still down from the high of 27,000 in 2003.
Growth in the creative sector is driven partially by demand from companies, but, also by the influx of new people to the metro area.
The design economy is alive and well. It provides more jobs in Michigan than the construction industry – and a higher payroll, according to the study.
The design economy consists of approximately 23,000 jobs plus another 13,000 freelancers or self-employed individuals – and in many cases those two groups overlap, according to the study.
Design jobs pay on average 26 percent more than all jobs, and are less likely to disappear with technological changes and advancements, according to the report Unveiling Michigan’s Design Economy
http://www.crainsdetroit.com/article...NEWS/150919833
|
As far as development along M-14 its at least a area where more development makes sense being West of Plymouth-Canton Area east of Ann Arbor and to the south of South Lyon and to the north of the Metro Airport - Willow Run - Ypsilanti Area, its highly desirable island of freeway and Oak Forest in the surrounded by built up areas. I'm not for blindly just building for the sake of building but the Metro Area has really grown to the North and Northwest to such a degree that this particular area now finds it's self in an advantageous position where it can be picky about what kind of development it wants which Washtenaw County is famous for doing already perhaps the officials have figured that now is a time where we can expect high quality development and we can control the pace we should take the first step. There are only 2 exits off M-14 between the Wayne County border and Ann Arbor not to mention the need for the area to be hooked up to City Water and Sewer as well which is very costly even for high end developments so i don't think were going to see the area ruined by sprawl any time soon.
Quote:
30 years later, Washtenaw County officials open to M-14 development
By KIRK PINHO
November 15, 2015
Crain's Detroit Business
Some Washtenaw County officials' words from 30 years ago have come true.
At that time, Crain's reported on pending or underway developments along what was then the new M-14 freeway corridor, the 22-mile stretch connecting Wayne County's western suburbs of Livonia, Plymouth and Canton Township to Ann Arbor.
While steady development began on the Wayne County portion a few years after the freeway's completion, officials from Washtenaw County said they wanted to retain the highway's countryside feel and have it not be the meeting point between Detroit and Ann Arbor development.
They mostly got their wish, although current local officials are more receptive to development along the freeway.
In the three decades that have passed, 33 buildings comprising nearly 3.5 million square feet of industrial, warehouse, distribution, and research and development facilities have sprouted along the east-west freeway. All but three, totaling 267,000 square feet, are in the 6.4-mile Wayne County stretch, according to data from the Southfield office of Newmark Grubb Knight Frank.
Those three, all in Ann Arbor, are the 150,000-square-foot Flint Ink Building, the 60,000-square-foot Jackson Plaza Business Park and the 67,000-square-foot Traverwood Business Park.
Space along the corridor remains desirable, with just a 3.2 percent vacancy rate, leaving only 112,000 square feet available so far in the fourth quarter, according to Newmark Grubb. The average asking rent is $6.03 per square foot, not including utility costs.
"As a kid, I remember people saying this whole area ... was going to be developed," said Dan Labes, senior managing director for Newmark Grubb. "But all you see (between Livonia/Plymouth and Ann Arbor) are vacant lands and signs. You see a megachurch and golf courses, but it appears that the industrial, R&D stopped just west of Beck Road."
Ken Schwartz, Superior Township supervisor, said he is open to development along the portion of the freeway that stretches through his community, as is the township board. However, a variety of infrastructure problems — including a lack of public water and sewer lines and just two Washtenaw County interchanges outside of Ann Arbor off of which to develop — make such projects difficult for developers.
"I would personally be open if a large firm wanted to come in and set up a world headquarters or a research lab, anything that would be progressive with jobs and tech space. But there are issues," Schwartz said.
Darren Frankel, principal of Troy-based Stuart Frankel Development Co., which developed the 77,000-square-foot Plymouth Commerce Center in 2003, said the M-14 corridor is attractive for developers and companies because of its proximity to Detroit Metropolitan Airport and other transportation options like rail lines.
He also said its connection to Ann Arbor, home of the University of Michigan and its talent stream, is desirable for high-tech and R&D companies looking for space, and that the communities through which it passes, and those surrounding it, are desirable for workers.
http://www.crainsdetroit.com/article...14-development
|
Last edited by Docta_Love; Jan 1, 2016 at 7:58 PM.
|
|
|