Dr. John Moore of Walsh College, last week at a meeting held with the Southeastern Chapter of the Michigan Mortgage Lenders Association (MSA), outlined a very upbeat picture for our local economy. His presentation centered on some very basic economic elements that provide for the high possibility of a good 2015 for real estate.
- Real Gross Domestic Product (GDP) throughout the U.S. is trending upward and is at the highest level since 2007.
- Medium Household Incomes in Michigan have regained strength and have almost equaled those of the entire U.S.
- Real estate associated stocks have grown at about 16% over the last three years and almost 19% in the last 12 months.
- Interest rates on 10-year treasuries have been in the 2-3% range keeping mortgage rates very reasonable.
- The U.S. savings rate to GDP has been upward trending at about 15%, making more money available for real estate purchases.
- The employment rate in Southeastern Michigan is growing, making buyers better able to qualify for mortgages.
- Residential building permits from 2012-14 have more than doubled the previous two-year period.
- Michigan and the Detroit MSA are cost effective places for businesses.
- Detroit is in the midst of a strong resurgence.
The signs are there. 2015 is shaping up to be a good year for the real estate industry in our market area.
Morris Hagerman is a local real estate agent with Real Estate One in Royal Oak, Michigan. He serves Berkley and the other Woodward 5 communities, including Ferndale, Pleasant Ridge, Royal Oak and Huntington Woods. Hagerman is also a member of the Berkley/Huntington Woods Area Chamber of Commerce. You can contact him by phone at 248-854-8440, email at morrishagermanproperties@gmail.com or visit his web page.
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