No Pain at the Top? $1 million-plus home sales soared in Oakland County in 2020

Printable View

February-08-21, 09:45 AM
Lowell

pictures

No Pain at the Top? $1 million-plus home sales soared in Oakland County in 2020

A sign of the time from Crains. Thoughts?

"As a public health crisis roundly shattered the global economy, last year Oakland County saw the most $1 million-plus home sales recorded within its borders in recent memory.

"To boot, the home to some of Michigan's wealthiest communities set high water marks for monthly luxury home sale records this century — twice.
...
"It's not evenly distributed," Jonathan Silberman, a professor of economics and director of the Southeastern Michigan Economic Data Center at Oakland University, said of COVID-19's impact on peoples' economic well-being.

"People who can work from home and people who have stock market investments, they have done fine or their income and wealth has increased, if not accelerated. It's falling on people in the service industry with lower incomes. This is well known. The experience economy — going to a restaurant, going to a concert, travel and leisure, that's where the brunt of the economic collapse is."

...
Austin Black II [who participated on DetroitYES in the past], head of Detroit-based brokerage City Living Detroit, sold a $1.5 million home in downtown Birmingham last year to a client who toured properties not only in the posh Oakland County suburb, but also Northville, Royal Oak and Plymouth.

He said upper-income households have not only done well financially in the last year but also have saved considerable sums by not traveling or dining out.

"They have saved a ton of money over the last nine to 10 months," giving them more to invest in a new home, Black said.
https://www.crainsdetroit.com/real-e...onomic-fallout
Attachment 41285
February-08-21, 10:21 AM
Jimaz

I recall reading that, because of the Great Recession, people in the construction trades had to made career changes to adapt. After the recovery, to lure workers back, builders had to pay them much more. The only way they could afford that pay increase was to focus on building more expensive homes. A shortage of less expensive homes was predicted. So this was anticipated even before Covid19.

It looks like Covid19 only exacerbated an existing divide.

It's interesting that a lack of economic resiliency comes at a steep price.
February-08-21, 10:25 AM
401don

At least in the Detroit area you can still buy a relatively inexpensive home, especially with current interest rates. Here in Toronto, the average price of a detached house is 1.5 million.
February-08-21, 02:07 PM
softailrider

Quote:

Originally Posted by 401don

At least in the Detroit area you can still buy a relatively inexpensive home, especially with current interest rates. Here in Toronto, the average price of a detached house is 1.5 million.

That's very expensive. That's Canadian money but still very expensive.
February-08-21, 02:20 PM
Scottathew

In Rochester Hills, where I reside, homes are still selling really fast. New homes that are smaller in square footage and on smaller lots are selling for $100K more than my house, which was built in the late 1960's.

My wife and I have no desire to "upgrade" to a larger house, instead we'd rather retire as soon as our finances allow it. I've never understood wanting a larger house. I could afford a little bit more than what I have, but why?
February-08-21, 02:28 PM
401don

Quote:

Originally Posted by softailrider

That's very expensive. That's Canadian money but still very expensive.

Unfortunately for most Canadians, they make Canadian money.:)
With the constant immigration, and land use restrictions [[sprawl has really been capped here) there's a tremendous shortage of housing. It has led to a flood of retirees cashing in on their homes and moving to southwestern Ontario. Every town from west of Toronto all the way to Windsor is trying to attract them.
February-08-21, 02:54 PM
hybridy

Alternately, there are lots of high priced listings that are languishing on the market for 2-3+ years.

Listed May 2016:
https://www.zillow.com/homedetails/8...24495961_zpid/

Listed Sept 2018:
https://www.zillow.com/homedetails/7...06914356_zpid/

Listed Oct 2018:
https://www.zillow.com/homedetails/2...25758232_zpid/

Listed Feb 2015:
https://www.zillow.com/homedetails/5...44087507_zpid/
February-08-21, 02:56 PM
313WX

Data recently released from Redfin is really interesting.

Detroit's MSA is still seeing significant outward migration [[as expected) and it's still, by far, the best bargain major metro in the country. However, Detroit's also the only major metro where new housing permits have surged [[specifically 122% YoY) despite seeing the sharpest decline in home sales.

https://www.redfin.com/news/homebuye...shortage-2020/
February-08-21, 06:03 PM
Ray1936

So you buy a zillion dollar home. But you're still in Michigan, with a goofy state government and shit weather. I'll pass.
February-09-21, 09:33 AM
hybridy

Quote:

Originally Posted by Ray1936

So you buy a zillion dollar home. But you're still in Michigan, with a goofy state government and shit weather. I'll pass.

NV has their fair share Ray.
https://www.cnn.com/2020/04/23/polit...gas/index.html

When people make decisions to move it's primarily tied to career and less so family if kids are in tow. Most people don't have the luxury to move based on politics. Some would claim those who move to the desert southwest are looney toons because of the utter lack of water and culture, but who are we to judge eh! Politics aside, it's a forgone conclusion the great lakes win out as the crop belt moves further north and the coasts become ravaged by flooding and storms, and the west dries out and burns down.
February-09-21, 09:54 AM
401don

Quote:

Originally Posted by hybridy

NV has their fair share Ray.
https://www.cnn.com/2020/04/23/polit...gas/index.html

When people make decisions to move it's primarily tied to career and less so family if kids are in tow. Most people don't have the luxury to move based on politics. Some would claim those who move to the desert southwest are looney toons because of the utter lack of water and culture, but who are we to judge eh! Politics aside, it's a forgone conclusion the great lakes win out as the crop belt moves further north and the coasts become ravaged by flooding and storms, and the west dries out and burns down.

Not a good person to quote since Ray agrees with everything she said.
February-09-21, 10:27 AM
hybridy

Quote:

Originally Posted by 401don

Not a good person to quote since Ray agrees with everything she said.

Yikes! Thankfully this is a LOUD minority and not a real reflection of the overall electorate.
February-09-21, 10:36 AM
Zacha341

Opinion vary [[obviously), and everyone does not want to move or cannot move. NV has its share of problems locally and shared with the nation!

We still have the advantage of water. Not artificially pumped-in from miles away with a troubled dam and lake supporting that, and regions nearby.

Though perhaps the COVID shut down a few of those 24/7 casino attraction waterfalls a tad........

Southern Nevada can't afford to get complacent about water ...

Quote:

Originally Posted by Ray1936

So you buy a zillion dollar home. But you're still in Michigan, with a goofy state government and shit weather. I'll pass.
February-09-21, 10:40 AM
Zacha341

As the world turns... in general.

Quote:

Originally Posted by hybridy

Yikes! Thankfully this is a LOUD minority and not a real reflection of the overall electorate.
February-09-21, 08:03 PM
wazootyman

Quote:

Originally Posted by Ray1936

So you buy a zillion dollar home. But you're still in Michigan, with a goofy state government and shit weather. I'll pass.

The state government...eh, to each their own. I wouldn't say I agree with a lot that's been done, but I also can't say I have significantly better ideas.

I've yet to travel to a state that's compelled me to want to move. Many nice to visit, sure, but Michigan is home.

As for the weather...that I'll have to disagree with you on. Went skiing up north this weekend. Despite the single-digit low temps, the entire family had an incredible time. Snowed the entire weekend - though the sun managed to peek through at times. Conditions on the slopes were just about as close to perfect as you could ask for. With good ski gear [[and helmets!) we didn't even get cold. Turns out, the mandatory face coverings were a big help in keeping warm.

I'd say we get a month or two of lousy weather here, where the cold & gray can drag you down a bit. That's usually the time to travel to south for a week or so [[maybe not again this year). But for the most part, the seasons are pretty great, and we've had some fantastic summer weather in recent years.

I guess what I'm trying to say is...I like Michigan [[well, and the Detroit area, right?). To each their own, I suppose, but I have no interest in complaining about where I live.
February-09-21, 08:42 PM
bust

Some try to make themselves feel better by putting others down.
Best avoided.

Like when I picked up my friend after our first year away in college.
I was driving a few blocks to my house, the same block as home.
It was nearing dusk and the cop supposedly flashed his brights behind me because my headlights weren't on.
He pulled me over, lit his flashers in front of my house, my strict mom.
Challenged, "Don't you know what it means when someone flashes their headlights?"
I said, "Sorry, I didn't see you. We were talking. We haven't seen each other for almost a year-- our first year away at school."
Him: "Oh, college boy, are you? They must not teach common sense in college!"
Took my license, saw my address exactly where I was stopped.
Let me go, with a scowl.

That was the ONLY time out of four I've been pulled over and he didn't give a ticket.
So there's that.
February-09-21, 08:54 PM
Ray1936

Quote:

Originally Posted by hybridy

NV has their fair share Ray.
https://www.cnn.com/2020/04/23/polit...gas/index.html

Oh, she's a goofy, to say the least. But I don't live in Las Vegas.
February-10-21, 07:38 AM
Danny

That is why Oakland County [[The OC) is the richest county in Michigan.
February-10-21, 10:25 AM
softailrider

Quote:

Originally Posted by Ray1936

So you buy a zillion dollar home. But you're still in Michigan, with a goofy state government and shit weather. I'll pass.

Best Summers you’ll find anywhere. Spring and Fall are pretty good too. However, there is truth to the above.
February-10-21, 10:48 AM
401don

Quote:

Originally Posted by softailrider

Best Summers you’ll find anywhere. Spring and Fall are pretty good too. However, there is truth to the above.

Most people in places like Nevada and Florida hide indoors during the day in the summer so I don't really see the difference.
February-10-21, 11:10 AM
Zacha341

^ Yeah, the drag about Michi's long, LONG cold winters is that it just cold 'outside' all the time, worse at night!
February-10-21, 02:06 PM
Jimaz

If you want the best of both worlds you could do the snowbird shuffle between warm winter and cool summer residences.

If you want to minimize the travel distance between the two then I-17 between Flagstaff and Phoenix, AZ has the densest isotherms in the country.
February-10-21, 02:20 PM
Ray1936

Quote:

Originally Posted by Jimaz

If you want the best of both worlds you could do the snowbird shuffle between warm winter and cool summer residences.

If you want to minimize the travel distance between the two then I-17 between Flagstaff and Phoenix, AZ has the densest isotherms in the country.

Well, Flagstaff is atop the tallest mountain in AZ. No surprise there! :)