Economy
4:48 pm
Tue July 23, 2013

Metro Detroit housing prices up 45%

Housing prices in Metro Detroit are up 45% over last year according to data released on Monday by the Realcomp listing service.

Credit Bradley Gordon / Flickr

Allen Daniels is the director of the Michigan Association of Realtors. He says home prices are up because the number of properties for sale are down.

Daniels says limited supply combined with low mortgage rates and an improving economy are raising home prices.

"I think we're going to see prices continue to rise until the supply increases, and with our economy improving we may see some new construction," he said. "We may also see some people that are waiting for values to recover then decide to put their house on the market."

Daniels says these numbers reflect overall improvements in the national housing market.

"We're seeing a recovery in the real estate market. As the overall economy improves, we're seeing that the market is rebounding," he said. "People are more optimistic and they're making the bigger ticket purchases."

Daniels expects this trend to continue as the economy improves.

-Sarah Kerson, Michigan Radio Newsroom