SOUTHFIELD, Mich. (WXYZ) — Metro Detroit is taking the national spotlight as having the most overpriced homes in the country, according to a new study.
Florida Atlantic University and Florida International University issued a study showing 40.8% of homes in metro Detroit are overvalued.
“I mean, even when you do find a house you like, you got another 10, 20 people putting in offers over asking price,” said Dr. Mohamed Moussa.
For Moussa, the road to finding a new home has taken years and come with plenty of bumps.
Top-rated realtor Ali T. Charara with Century 21 Curran & Oberski said the housing market has been challenging for buyers since the COVID-19 pandemic.
“I just had a property right now, I listed it at 319 thousand (dollars). The property within 48 hours sold at 365 thousand (dollars),” Charara said. “I probably had 35 showings and 11 offers.”
For a better grasp on why prices have climbed so much, Charara says take interest rates into account.
“All those sellers, or homeowners, don’t want to sell their properties anymore because they got such a great interest rate. It’s driving demand up, so there’s no supply,” Charara said.
Proximity to family and friends is another factor keeping some from selling, which hurts inventory.
A recent median home listing in Dearborn is nearly $270,000. It’s leading to yet another trend in other places like Southfield.
“I make that call sometimes and ask am I competing with cash? That’s something we’re seeing a lot of,” Charara said.
Charara says these trends could continue for another two years, leading more people to rent. The study also shows metro Detroit is outpacing Miami in speed of price increases.
“Twenty people putting in offers over asking price and it becomes a bidding war. And at what point is it really worth it? It really becomes a challenge,” Moussa said.
