DETROIT (FOX 2) - The housing market in Michigan is still hot as the peak home buying season approaches.
In the past 90 days, mortgage rates have jumped to their highest numbers in more than a decade, but the market hasn't slowed.
"One of my most recent listings, we had about 258 showings in the course of 72 hours. It’s been crazy," said Paul Wolfert, a realtor with Century 21 Row. "It used to be where we could go out and tour homes with somebody. We would have 5-10 homes to go see. Now, it’s just one home. It’s just one house in a neighborhood to sale, and there’s a line of cars waiting to see what you have."
A recent survey from Bankrate found that one in five Americans are looking to buy a house, and many of those people are millennials.
"Now with the technology, people have their cell phones, they’re more tech-savvy, they’re looking online at houses. So it’s speeding up the process. We’re seeing a lot more younger buyers for certain," said Robert Alati, a sales Manager with Atlantis Mortgage.
As more people flock to buy houses, home prices are soaring. The average home is going for 20-25% more than it was three years ago.
Wolfert said that in March 2020, home buying sales in Michigan reached $27 billion. This March, it was $36 billion, and sales numbers have been in the mid-30s since December. May through July is considered the peak season.
Alati said he hasn't experienced a housing market like this before.
"I’ve been in mortgage lending now for almost 27 years. This is a market I’ve never seen," he said.
As inventory levels remain low, it isn't clear when they will return to pre-pandemic levels.
"That’s the magic question everyone wants to know. The problem — we don’t know because everybody is afraid to sell," Wolfert said.
If you're trying to buy a house, be pre-approved for a loan before going to see homes. Also, be prepared to make a 20% down payment.