Real Estate: Detroit-Warren-Dearborn & Ann Arbor, Q4 2023

Detroit-Warren-Dearborn Area Overview

In Q4 2023, the Detroit area's median home price was $241,500, substantially lower than the U.S. median. The region saw modest growth with a 1.9% annual price increase and a three-year appreciation of 6.6%. Financial accessibility is a strength, evidenced by a conforming loan limit of $766,550, enhancing affordability.

Economic and Employment Landscape

Despite challenges in critical sectors like manufacturing and construction, Detroit maintains a relatively stable employment environment with a 3.3% unemployment rate. Construction activity has declined, potentially stabilizing home prices by aligning supply with demand.

Mortgage Trends

End-of-year mortgage rates stood at 7.3%, with expectations for a decrease in 2024, which could boost affordability.

Ann Arbor Market Highlights

Ann Arbor's market was vibrant, with a median home price of $380,500 and a 7.3% increase over the year. Home equity gains were impressive at $163,000 over three years.

Economic Strengths

Ann Arbor enjoys a low 2.6% unemployment rate and robust job growth, particularly in manufacturing and health education sectors. While construction activity is reduced, it remains 30.9% above the long-term average, suggesting a healthy balance in housing supply.

Affordability and Mortgages

Mortgage rates peaked at 7.5% but are expected to fall, enhancing future affordability. The price-to-income ratio has slightly eased, positioning Ann Arbor as an affordable option compared to other markets.

Long-term Outlook

Detroit offers value with the potential for steady growth, ideal for buyers prioritizing affordability and stability. With its strong economic fundamentals and vibrant community, Ann Arbor appeals to those seeking dynamic growth and robust investment returns.

Source: NAR Local Market Reports: https://www.nar.realtor/research-and-statistics/research-reports/local-market-reports