Michigan Home Prices Are Mixed, Some Areas May Drop Soon According to Real Estate Experts
West Michigan is going to continue to see inflated home values for the foreseeable future according to a recent article on Fortune.com. CoreLogic, the California-based real estate research company, provided an assessment of 400 metropolitan areas including 7 Michigan markets - Muskegon, Grand Rapids, Kentwood, Lansing, Kalamazoo, Portage, and East Lansing.
Here's how they ranked for the odds of home prices dropping over the coming year:
Grand Rapids, East Lansing, Kentwood and Lansing ranked low. That's a 10-20% chance. Kalamazoo, Portage and Muskegon are ranked elevated. That's a 40% chance of a price dip. Only 7 areas across the entire country are ranked as elevated.
For how CoreLogic rates home prices in America's largest housing markets, the cities were categorized as Muskegon, Lansing and East Lansing as normal values. Kalamazoo and Portage are undervalued. Grand Rapids and Kentwood are currently overvalued per the article.
Michigan mortgage expert Chris Alicki from WMI Mortgage said, "We believe that West Michigan real estate is going to continue to rise, and although higher rates might make it slightly less competitive out there, that only affects the one commodity that this industry has in abundance, buyers. This will be the greatest gain in middle class wealth in our lifetimes as homeowners gain equity."
"I think one thing is abundantly clear. The Kent county and nearby surrounding areas in Michigan are heavily shielded to the effects of national economic indicators such as inflation, rising mortgage rates and the extreme housing price appreciation in the last six months and the demand to live in this area and own property is still at an all-time high", Chris Linda from Keller Williams East said in regards to the article.
Michelle Gordon from Great Properties By - The Gordon Group GR said, "I can understand people's confusion; will we have a bubble burst or will we not have a bubble burst? Is it the same as last time? It's not the same as last time. This market is very very confusing and if you've been around as long as me, 20 years, then you can see some writing on the wall that's very similar to the 2008 market crash. However there are a lot of things that are different that make me believe that we will not have a bubble burst. I can only speak for the territory that I work in but West Michigan is very strong and I watched it go from a manufacturing industry to a medical -- technology industry and in no way is that declining. So the market in which I work I think we might have a new norm"
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