Real Estate Market Trends in Lansing Michigan

Posted by Mikalah On April - 1 - 2015 0 Comment

Home FinancesWhen the real estate market crashed a few years ago as a result of the subprime mortgage crisis starting in 2007, one of the hardest hit areas of the United States was the state of Michigan. As one of the most important states in the car manufacturing business, Michigan had seen millions of jobs lost to overseas competition and consolidation. However, according to information from a local real estate company Hubbell Briarwood, in recent years many of these trends have reversed themselves and some nicer parts of Michigan are starting to see a nice rebound in home prices and valuations. As the bleeding has stopped in the Michigan economy and more people are starting to move back, the housing appreciation should continue. However, there are several other trends that people should know about in the Lansing, Michigan area.

Millennials are Renting

As one of the most important economic groups in the country, millennials are driving some housing markets throughout the country. In Lansing, many people between the ages of twenty and thirty five continue to rent or live at home with parents. As a result of this trend, many places have seen the rents in the area rise. This would be a great to own desirable rental property as some people are looking to rent their own place and move out of their parents’ house. In the coming years as the economy continues to improve in the area, these renters will move out and look to purchase a home of their own. However, for the time being the trend for this age group is to rent, so position a real estate portfolio toward rent maximization.

Smaller Dream Homes

A dream home is simply a home that someone buys that they have always dreamed about. In years past, a dream home typically had a plethora of bedrooms and land. However, as the family size continues to drop in Lansing, Michigan the average size of dream homes in the area continue to drop as well. Now instead of many bedrooms, people are wanting nicer kitchens and bathrooms with tile and granite. This is an important shift as the quality of house is starting to matter more than the sheer size. Home owners are also realizing that their finances will benefit on an ongoing basis from owning a smaller home. Ongoing maintenance costs like heat, electricity and mortgage costs will be lower from owning a smaller sized home. Current home owners can take advantage of this trend by upgrading what they have in their homes instead of simply adding on to the size of their current home.

Lending

Finally, lending in Lansing has started to become much more relaxed than it once was after the real estate crash. Potential home buyers now need to have much less down when purchasing a home and need to make less per year with their annual incomes. This opens up the door to home owners who previously would not have been able to afford a home. When shopping around for a mortgage, be aware of where your credit score currently stands. If you are looking to get a mortgage soon, you can try to improve your credit score by making more ongoing payments with a credit card, and opening up another source of credit if you don’t have many open at the moment. More importantly however, you need to make sure that you are capable of paying off your debt – nothing ruins good credit more than defaulting on your loans.

Conclusion

Overall, real estate trends are one of the most important trends in the economy as it makes up a large segment of the overall gross domestic product. In the area of Lansing, Michigan younger people are renting longer and needing a smaller house due to reduced family size. However, lending practices are starting to get more relaxed and this will open up the possibility for more people to own their own homes. Best of luck when conducting your home search in Lansing Michigan, and be smart about lending and your finances!

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