Reality is setting in of today’s “new normal” in the Birmingham Bloomfield real estate market. A shift took place over the last 18 months, and with few exceptions, we are in a buyers market. Certainly we still see a few homes sitting out there longer than 90 days, but it is more common to see a race for keys and lock box codes on the first day a new home is listed. With record price appreciation in the last year, sellers have finally started to see a return of the equity lost between 2007 and 2011.
One of the most encouraging signs we’ve seen is a return of the builders. When I was looking for a new spec home for one of the Detroit Tigers in 2008 there was very little for us to chose from. Everybody had stopped building. The few projects that remained were the last batch of spec homes we would see in this market until this year. Now the chain link construction fences are back in every neighborhood in Birmingham and we have a huge home going up down the street from us in Bloomfield Village.
Buyers need to head into this market well prepared. The basics are still important.
It will take a little extra patience and strategy, but it will be well worth the effort. Happy home hunting!