The metro Detroit region has seen 45 consecutive months of year-over-year price gains in housing.
Home prices across metro Detroit continue to regain lost ground, rising 4% in March compared to a year earlier in the latest Standard & Poor’s/Case-Shiller Home Price index. After 45 consecutive months of year-over-year gains, the region’s housing prices are back to where they were in January 2008, when the real estate slump was beginning to turn into a free fall.
Still, prices remain 23% off their local peak in late 2005 and early 2006, the index shows.
Metro Detroit’s year-over-year price gain in March mirrored the national average. But prices here were still 42% below nationwide levels.
- San Francisco and Denver saw the biggest year-over-year price increases at 10.3% and 10%, respectively. Cleveland and the District of Columbia saw the smaller increases at just 1%.
- David Blitzer, chairman of the index committee, said in a statement that while home prices nationwide are currently rising faster than either per capita personal income (3.1%) or wages (2.2%), he would describe the market as experiencing a rebound — not another housing bubble.
- “All of this suggests that some future moderation in home prices gains is likely,” Blitzer said. “Moreover, consumer debt levels seem to be manageable.”
- On the new construction front, there were somewhat fewer houses being built in metro Detroit last month than a year ago.
The Home Builders Association of Southeastern Michigan reports that 376 new single-family home permits were issued in Macomb, Oakland, Wayne and St. Clair counties, or 17% fewer than in April 2014. However the average value of the new permits rose about 12% to $257,394.
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