Is there a glut of condos in SE Michigan?

December 30, 2006 by  
Filed under News

(December 30, 2006) According to a recent real estate report, Southeast Michigan is being slammed with a glut, they even call it a bloat, of condo developments.

Mark Gilman wrote in the December edition of RealView that “the inventory of unsold condos is far exceeding the inventory of unsold homes in Michigan. For example, in the Downriver area there is a 20-month supply of condos – about 500 existing condos and 164 new construction units — compared to an 11-month supply of homes on the market.”

What is the effect on Ypsilanti? It could be one of the drivers for Freed pulling out of Water Street. However Gilman points out that Condo sales and interest in downtown living is strong in Ann Arbor because for too long, the only housing options were rentals.

Gilman quotes Shawn Nelson, president of the Down River Association of REALTORS when she says, “The builders may only list one or two units, but they may have a 28-unit supply they’re trying to sell on their own.”

The article goes on to say, “In the Downriver area, Nelson attributed much of today’s condo glut to the building boom of several years ago when builders were trying to get the most bang for the buck on expensive land they purchased.”

Gilman tells readers that fifty percent of the previously-owned condo inventory was built in the past three years, and list prices for condos are down 10-20 percent from those of two years ago.

Click on the link to read the rest of Gilman’s article.


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