Trends in Detroit Real Estate During the Pandemic | What we are Seeing
I’m Lisa Virkus Founder of Realty in the D. The current pandemic has been traumatic to say the least. I’ve been getting a lot of questions from our clients as to how Detroit’s real estate market has been impacted. Here are some trends we are seeing:
Inventory of properties for sale is down
As people are concerned about their health, a lot of home owners have taken their properties off the market. Why is this? Our best guess is home owners are just not comfortable with people coming through their home. As the markets open back up, we do not see this trend changing in the short term. It’s going to take a bit before home owners are comfortable with people coming through their homes.
An example, active listings in Detroit’s historic neighborhood of Boston Edison in October of 2019 were 37. Active listings at the end of March were 16. This is a decline of over 57%. Click below to see what is for sale in Boston Edison:
Click here to see how other neighborhoods are performing in Detroit.
Buyers are trending toward newly renovated vacant homes
Buyers hold the same concerns as sellers. The current health situation has caused buyers to be concerned with what health issues they may be inheriting when buying a home that is currently occupied by other people. We are seeing a trend of our buyers looking more for a home that has been fully restored and has since had no occupants.
Owners and renters are looking to relocate from multifamily properties to singe family homes
With the need to social distance, owners and renters are becoming more and more uncomfortable being in such close proximity to others. For example, several of our clients looking to buy are simply not comfortable getting into an elevator with other people. They want to have their own place that gives them their own “personal sanctuary”.
Trend to working from home
More and more people have been forced to work from home. What has the impact of this been? People are discovering they “can” work from home. Technology such as Zoom have giving workers the ability to work efficiently from a home office. For many workers, there is no longer a need to go to an office.
Looking for a Modern Home Office
The trend to working from home is causing buyers to look for a home that has the perfect space for a Modern Home Office. As most of the homes in Detroit are historic, buyers are finding the perfect space for a modern home office to the third floor attic space.
Most historic homes have a very large third floor space that is either unfinished or have been finished as an additional living space. This is a perfect space for a modern home office. It’s usually very open and lends well to space planning. Furthermore, a lot of these spaces include a full bathroom. This is incredibly convenient and an important amenity of the perfect modern home office “suite”.
Most importantly, the third floor home office also brings separation from the rest of the home. You get the feel of being at the office, but still have the convenience of being in your own home.
Trending toward larger than smaller
People are rediscovering “staying home”. This is causing a trend toward “bigger” than smaller. When forced to stay home, many are discovering just how small their apartment or smaller home really is.
Our buyers are directing us to find them larger spaces. They want the ability to entertain family and friends “at home”. They want the ability to build out a true Modern Home Office Suite. They want space for a work shop. They want to have a vegetable garden. Etc. Etc. Etc. Bottom line…they just want more space!
Inventory of for sale properties in Detroit has dropped significantly. Sellers who had the home they live in on the market are pulling them off the market. They just are not comfortable with others going through their home and the potential health issues that may cause. Demand is high due buyers looking to leave multifamily in favor of single family homes. Buyers are not comfortable with not having the ability to social distance and they just want more space! And they want that space to not have been occupied by someone else…
These are trends we are seeing due to the Pandemic. And these may be trends that prove to be more long-term trends than short-term trends. The world has certainly changed!