North of Detroit, home prices are up 46.2 percent
Those watching for another housing bubble are paying attention to pricing behavior in Michigan -- and in one county, prices have spiked by nearly 50 percent year-over-year. Per the Macomb Daily:
Sellers in Macomb County continued to enjoy the upper hand in Southeast Michigan’s real estate market in October, with median home prices increasing by 46.2 percent over the same period in 2012.
The prices – which have been driven upward by dwindling inventory levels, still-low interest rates and a recovering local economy – increased from $82,000 in October 2012 to $119,900 this year, according to a report released by Farmington Hills-based Realcomp, which measures real estate activity in Southeast Michigan.
Macomb County is about 35 miles northeast of Detroit, which filed bankruptcy earlier this year. So is what's going on in Macomb indicative of another housing bubble?
Macomb’s prices, however, have not increased at the same rate as those in Oakland County, where median prices have reached 2007 levels, Kage said.
Although sales prices increased, the number of sales in the county was virtually flat. According to the report, sales increased by only .9 percent; 1,078 homes were sold in October 2013 versus 1,068 the previous year.