Real estate is quite a volatile market. The smallest external changes can send waves through the real estate industry. There will always be some good and bad news in the market.
At the end of 2019, Forbes released an article which shared predictions for 2020. In a nutshell, the market was expected to flourish with housing prices and rental prices increasing overall. The article also mentioned the shift from larger homes to smaller ones due to the rise of millennial buyers.
While this article speaks about the overall real estate market of the country, what’s in store for real estate in Michigan?
Few entry-level homes on the market
Michigan is a flourishing state. It’s a great place to start a family due to the amazing amenities offered here. The housing trends here are looking good for sellers.
There are fewer entry-level homes expected to be on the market this year. Entry level homes are homes that first-time buyers invest in. they are smaller homes that are also more affordable. With the overall increase in home prices, first time buyers will find it difficult to buy a home in this market.
The real estate market here, however, is abundant in larger homes for well settled individuals. Those looking to upgrade their homes will find themselves spoilt for choice.
The effects of coronavirus
The coronavirus pandemic spread its roots in the United States back in March. On 13th March, President Donald Trump declared a national emergency. The coronavirus has affected businesses of all sizes and the infection rate in America continues to increase.
This pandemic has taken a toll on the economy in the worst way possible. March also saw the crash of the stock exchange due to businesses being shut down and people losing faith in investments. This has taken a toll on the real estate market as well. Prices of real estate have plummeted since the overall demand of housing has decreased.
Zero interest rate
The Fed declared that interest rates were to be slashed to zero in the hopes of stimulating various industries. The low interest rate has worked in favor of some entities since they can sign up for cheap loans to invest in commercial as well as residential real estate.
What does this mean for Macomb County?
Macomb County is dealing well with the COVID-19 outbreak. The community has come together so that they can fight this virus. This has had a positive impact on real estate in the area. Commercial real estate landlords are benefiting from low interest rates as tenants are renewing their leases and there still is an active demand for commercial real estate in the area.
Our company deals in all types of commercial properties in Macomb County. From offices to retail and even industrial properties, we can help you sell yours, lease it, and even hep those looking to buy. Our commercial real estate solutions include landlord and leasing services, building evaluations, buyer representation, seller representation, and consultations. Call 586-227-9515 to book an appointment.