Franklin Street condos in Detroit
The high demand for housing is making a dramatic mark in the area, with people regularly bidding over the asking price and the Detroit condo market inventory shrinking.
After having an estimated 11 months of condo inventory earlier this year, based on typical sales, the city now is down to 7.6 months of inventory in neighborhoods that range from downtown to areas east, north and west, Crain's Detroit Business reports, citing new research from Detroit-based residential brokerage house Berkshire Hathaway HomeServices The Loft Warehouse.
Inventory in the real estate business is another way of saying "active listings." A bigger inventory is an indication of slower sales.
Developers and realtors calculate inventory of homes for sale in the current month divided by the average number of homes selling in that same month.
Crain's reports:
That puts greater downtown on pace to have a healthy balance of supply and demand — generally considered four to six months worth of inventory — in the coming months.
The equilibrium could be short lived, however, as the costs of building materials have soared about 50 percent since February 2020, driving up construction costs and threatening to kneecap condo development projects, said Jerome Huez, owner of Berkshire Hathaway HomeServices The Loft Warehouse.
