Economy
8:48 am
Thu February 20, 2014

It's getting more expensive to buy a home in Michigan

Realty Trac is out with a report on home affordability.

The report shows that rising home prices and interest rates are translating into higher monthly mortgage payments for home buyers.

The report focused on three bedroom, single-family homes.

Daren Bloomquist is with Realty Trac.

He says Wayne, Oakland and Macomb counties have seen a 40% to 50% increase in monthly mortgage payments on home sales in the past year.

Bloomquist says home prices in the Detroit metro market are still very low.

“This increase is concerning … it’s not going to be affordable much longer. But it's still probably one of the most affordable markets in the country,” says Bloomquist.

The Realty Trac survey found monthly mortgage payments are up more than 30% in Genesee, Kent and Washtenaw Counties in the past year.

“Even at this point, the numbers will very likely go up from here because we are still showing relatively low home prices in most parts of Michigan compared to the rest of the country,” says Bloomquist.

Bloomquist says the average prospective home buyer in Michigan still has a sufficient income to buy a home.