Metro Detroit’s housing market is expected to stay hot in 2022 experts say

(WXYZ) – If you are looking to buy a new home or are considering selling a property, you may be wondering what the housing market will be like next year.

Last summer the market was buzzing with realtors telling me that a lot of new homes would be snapped up on the opening weekend.

Madeleine Fielder and her husband made four failed offers by August.

“Our last offer was beaten by an offer that was about 30-35 grand above the asking price,” said Fielder.

WXYZ’s Alicia Smith checked in to her this week and was told they made another offer and finished second again.

Jeanette Schneider, president of REMAX in southeast Michigan, says the November real estate report shows the average sales price in Metro Detroit increased 12% compared to November 2020.

She expects that prices will continue to rise.

“I expect they will continue to rise. I would just expect that we will not be as stable as we have been saying for the past two years.”

On December 15, the US Federal Reserve announced it would hike rates more aggressively to tackle high inflation in the US, but when – or if – that will happen remains to be seen.

Alex Elezaj, chief strategy officer at UWM United Wholesale Mortgage, based in Pontiac, says he predicts an increase in mortgage rates.

“We assume that interest rates will rise. You know, we expect them to potentially climb even higher in the second half of 2022 based on some of the Fed’s announcements earlier this week, ”he said.

He says interest rates are still around 2.75 right now, which is still very low.

So it looks like the seller market that we’ve been seeing for a few years will continue here in Metro Detroit.