Birmingham is a charming and affluent city in Oakland County, Michigan, known for its upscale shopping, dining, and entertainment options. The city's real estate market is one of the most dynamic and sought-after in the state, attracting local and out-of-state buyers and investors. It has a great sense of community, which makes it an excellent market for homeowners. Birmingham also has a high rental and leasing demand. This, in conjunction with proximity to Detroit and excellent job opportunities in its vast economy, makes Birmingham a highly desirable place to call your own. There are several golf courses in Birmingham, MI, including Lincoln Hills Golf Course, alongside numerous other amenities. The city is served by the Detroit Metro Airport, which is about 30 minutes away. The city's downtown also offers several business districts and entertainment venues.
If you’re thinking about moving to Birmingham, read on for an overview of the real estate scene to get an idea of what you can expect.
Home values are on the rise
Over the past few years, the Birmingham, Michigan real estate market has experienced a steady increase in property prices and sales volume. This increase can be attributed to more people wanting to buy a home and take advantage of Birmingham's diverse innovations and its affordable housing prices. Several factors have contributed to this upward trend in property prices and sales volume. First, the local economy has remained strong, with low unemployment rates and strong industries. Secondly, Birmingham has continued to grow as a great place to live and raise a family. With this in mind, more people are buying homes in Birmingham.
Interest rates are on the rise
Buyers enjoyed relatively low interest rates in late 2020 and 2021, which attracted real estate seekers nationwide. However, mortgage rates have been on the rise due to the Federal Reserve's decision to raise its interest rates in the spring of 2022. Currently, rates sit at around 6.9% at the end of May 2023. As a result, home buyers face an increased cost for mortgages, leaving some buyers waiting on the sidelines for better rates to come back around.
However, as an upscale community, Birmingham's attractiveness as a housing market is highly unlikely to be affected significantly by these changes. Therefore, demand for housing is expected to remain high.
Investing indicators favor landlords
Property prices in Birmingham are expected to increase over the next few years. Landlords are likely to benefit from this growth. During the past few years, the market has experienced steady increases in average and median rents. This indicates that landlords can expect to earn a healthy income from their investments due to the high demand for their rental properties, particularly in downtown areas. Birmingham has a relatively low vacancy rate, meaning landlords can expect their properties to be consistently occupied by tenants. According to statistical data from Rate, the homeowner vacancy rate in Birmingham was just 1.2% in 2022, while the rental vacancy rate was 6.3%.
There will be a positive net population migration
There are approximately 21,700 people living in Birmingham, as of the latest data, and the population density is 4,551 persons per square mile. Thanks to its high employment rate and excellent investment opportunities near Detroit, Birmingham is expected to continue to grow. Birmingham is also known for its high-quality private schools, making it an attractive option for families with children.
How COVID-19 affected the Birmingham, Michigan real estate market
The COVID-19 pandemic significantly impacted the Birmingham, Michigan real estate market, as it did many other real estate markets across the country. At the outset of the pandemic, the market experienced a significant slowdown, as economic uncertainties led many potential buyers and sellers to put their plans on hold. However, as the restrictions began to get lifted, the market started to rebound, with many buyers and sellers adapting to the new normal and taking advantage of historically low interest rates and a highly competitive market.
Greater Metropolitan Detroit housing market trends 2023
The median sales price of the Greater Metropolitan Area of Detroit has been increasing slowly throughout the year, according to the latest local market data from the GMAR. As of January 2023, the median sales price was $192,000, which then increased to $200,000 in February and $205,000 as of March 2023. While pending and closed sales are down compared to the stats of 2022, they are still rising month-to-month.
Oakland County housing market trends 2023
Oakland County has experienced a strong and stable housing market in recent years, with real estate prices rising steadily. This trend will likely continue into 2023 as job growth remains strong and the area continues to have plenty of appeal. In addition, a shortage of available homes for sale in recent years has driven up prices and made it more difficult for buyers to find suitable properties. This inventory shortage is expected to continue in 2023.
Birmingham median home prices 2023
The median price of Birmingham homes is around $618,000, which is a 0.6% increase from April 2022. Prices are projected to continue to rise in 2023, thanks to numerous factors. First, the local economy is likely to remain strong, which will ensure continued demand for property. Also, Birmingham offers a high quality of life for its residents, promising plenty of appeal for real estate.
The Birmingham, Michigan real estate market: should you invest in 2023?
If you are considering investing in Birmingham, MI, real estate, you have plenty to look forward to. The housing market is expected to continue to grow in future years, with Birmingham’s most desirable homes commanding high prices. This will bode well for your return on investment when it comes time to sell.
Buy your next home in Birmingham
Are you prepared to invest in a gorgeous Birmingham home? Trusted Realtors® Kevin and James Cristbrook and their team specialize in the Birmingham luxury real estate market. This exceptional team is more than ready to assist you with finding the perfect new property. Contact the Shain Park, Realtors® today to learn more about starting your real estate journey.