In the last few years the city of Detroit has seen the beginnings of a real estate resurgence.
Although challenges remain in the city real estate market, such as continued difficulty in getting mortgages and the market having a high percentage of cash sales, there are three neighborhoods in Detroit that the real estate site Redfin (who also provides real estate agents as a service) say are the hottest in the metro area.
Their predictions aren’t just for the city, but the region as a whole. It’s another indicator that at least when it comes to interest on their site and with their agents, the focus is continuing to move from the suburbs to the city. That trend is happening across the country.
“Redfin research shows that over the past five years, home prices in urban cores have shot up 50 percent faster than in the metro areas as a whole,” said Redfin chief economist Nela Richardson. “Our data on homebuyer activity shows that this year people are bypassing the most expensive areas in the center city in search for high-end amenities and renovated homes a few train or bus stops outside the city limits. The hottest neighborhoods of 2017 will be those edge communities that deliver urban convenience at prices that are closer to earth.”
So, let’s get to the list.
3. Palmer Park
Their definition of Palmer Park, looking at the map outlined in red, includes what many residents would know as the University District, Palmer Woods, Sherwood Forest, and Palmer Park Apartment Building Historic District.
It’s roughly west of Woodward, north of McNichols (six mile), east of Livernois and south of 8 Mile. The median price sale over there is $210,000 and properties are on the market on average 54 days.
2. Rosedale Park
This is part of an area in Detroit referred to as Grandmont-Rosedale that shares a nonprofit development corporation, but they’re specifically focusing in on the area roughly along Grand River west of the Southfield, south of McNichols, east of Lahser and roughly north of Lyndon (excluding Brightmoor). It’s also where one of the new Meijer stores has been built.
Homes stay on the market here 53 days and the median sales price, according to Redfin, is $60,000.
1. Downtown Detroit
This one shouldn’t be a surprise to anyone, but it’s important to note that Redfin’s definition of “downtown” is very different from either the 7.2 square mile definition of greater downtown commonly talked about.
Redfin’s definition includes not only the Central Business district, but also Lafayette Park, Riverfront, Eastern Market, Elmwood Park and a large chunk of the Corktown neighborhood — but not Midtown or much of the Woodward corridor at all. Redfin’s downtown goes as far west as I-96 and as far east as the Belle Isle Bridge.
Properties are on the market on average just 36 days in this area, with a median price of $169,500.
“Downtown Detroit real estate is on the rise and will probably get even hotter when the new arena is done,” said Terry Kaltas, a Redfin expert. “Little Caesars Arena will house two of Detroit’s sports teams, the Pistons and Red Wings, and will be smack-dab in the middle of a 50-block entertainment district that’s already bursting with new residents and new businesses, all of which will bring a ton of new jobs downtown for residents in the area.”
Do you agree with these picks for 2017? What’s next — or what should be next — in your opinion?