Source: Hour Detroit —
As anyone who’s looking to buy a house knows, the metro Detroit real estate market is on fire, with inventory low, demand high, and prices through the roof. We asked Jeff Tucker, senior economist at Zillow, for answers to some of the most pressing questions about this boom.
Hour Detroit: How is this housing boom different than the bubble that burst so disastrously in the early 2000s?
Jeff Tucker: Both today’s market and the market in the early 2000s saw extreme price growth, but that’s where the similarities end. Today’s market is built on strong fundamentals, with well-qualified buyers locking in traditional, fixed-rate mortgages. Price growth is being driven largely by a simple supply and demand imbalance. The historically big millennial generation is reaching prime home-buying age, and low mortgage rates and remote work options are supercharging demand. Home shoppers are fired up to buy now, but are encountering historically low inventory, thanks in part to a deficit of new home construction ever since the Great Recession.