Rising mortgage rates squeezing some Michigan housing markets
Michigan didn’t see home sale prices rise as sharply as other parts of the country in recent years.
But a new report finds Michigan housing markets are not seeing the sharp declines hitting previously hot now cooling real estate markets across the U.S.
ATTOM is a company that tracks the real estate industry.
The company’s U.S. Home Sales Report released Thursday shows profit margins on median-priced single-family home and condo sales across the United States decreased in the third quarter. It’s the first decline in almost three years.
The drop-off in typical profit margins came as the median national home value went down 3 percent quarterly, to roughly $340,000.
Some Michigan real estate markets are also feeling the effects of rising mortgage rates.
“You’re seeing year over year seller gains drop in Lansing(-7.8%), in Kalamazoo (-7.2%)and in Ann Arbor (-6.1%) at rates that are similar to what we’re seeing nationally,” said Rick Sharga, executive vice president of market intelligence at ATTOM.
But Sharga says Detroit(+1%), Flint (+6.5%) and Grand Rapids (+5%) actually posted gains in the third quarter.
However, he expects rising mortgage rates will likely soon result in lower home sale prices across the U.S. and Michigan.
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