When the best homebuyers are in the wrong city
The best deals in the Midwest, according to data from MCI Property Consultants, are found in Chicago, Indiana, and Michigan.
MCI is a leading homebuyer research and consulting firm.
The firm’s top Midwest homebuyership city for the year was Detroit, which came in third, with $10.2 million.
That was the highest percentage increase in market value, followed by St. Louis ($9.4 million), St. Petersburg, Florida ($9 million), and Lansing, Michigan ($8.5 million).
The biggest increase in median sales price was Milwaukee, where the median home price jumped more than 30 percent to $3.1 million.
Property agents also report that Indianapolis, which was the home of the 2016 U.S. Soccer Women’s World Cup, is the top city for homebuyering.
The number of properties with new listings in Indianapolis increased more than 60 percent from 2014 to 2015.
“We’re seeing a very strong surge in listings,” says Paul Staggs, MCI’s chief market analyst.
“It’s kind of a classic case of the homebuying boom in the middle of the night.
We’re seeing people come in and sell their houses in the early morning hours, with the hope of having a chance to buy at a good price.”
MCI also found a surge in condo sales, and there are more condo units in use, which are usually reserved for senior citizens.
“A lot of condo units are being rented out for seniors, and a lot of that is done for people who are over 55,” says Stagg, noting that the median age of a renter in Chicago is 61.
“The condo market is definitely booming, but we’re seeing it in a more sustainable way, and we’re also seeing more condos that are not just being used for people over 55, but are actually being rented to people over the age of 50.”
The Midwest homebuys have been coming to Chicago since 2015, when a new generation of millennials started to buy their first homes.
The market has exploded in value.
In 2016, Chicago saw a 40 percent increase in sales of condos and 39 percent increase for single-family homes, according the MCI report.
This year, the market has grown by an average of 13 percent annually, which is nearly double the national average, according MCI.
“That’s a testament to the housing market,” says Chris Schulz, vice president of real estate and finance at the Chicago Board of Realtors.
“I think there is a lot more demand for the homebuying market in Chicago than there is demand for single family homes.”
In fact, a recent study by the Chicago Urban League found that the number of newly-built single- and multifamily units in Chicago has increased by nearly 40 percent since 2011, while the number sold to buyers has remained relatively stable.
This is partly due to a lack of demand, according Stagg.
“You’ll see a lot less single family homebuyings in the coming years,” he says.
“But it will be a lot closer to the peak of the boom in Chicago and probably the boom out West, as well.
And that is a good thing for Chicago.”