DEARBORN HEIGHTS — With COVID-19 cases spiking and the pandemic still being very much alive, a lot of people have been concerned about the housing market. Among the concerns, the biggest that seem to be evident among sellers and buyers is whether the market will crash.
Dave Abdallah, a realtor of 31 years, said that couldn’t be further from the truth.
“In Dearborn alone there are 120 homes on the market,” he said. “In Dearborn Heights there are 119. We have extremely low inventory and extremely high demand with extremely low interest rates right now. I have never seen interest rates this low.”
Abdallah said the high demand is causing prices to go up.
“If a house is clean and priced right, you’ll see the price go up,” he said. “We have multiple properties with two to five offers right now. In January of 2018, the average list price for houses in Dearborn was $118,000. It is now at $141,000. In Dearborn Heights, the average list price in January 2018 was $103,000, and now it’s $139,000. Houses are moving off of the market within the first 30 days.”
We are in a high demand market and it’s doing very well. There are absolutely no indicators of a crash happening in the foreseeable future. – Dave Abdallah
While the pandemic is negatively impacting several facets of everyday life, Abdallah said it’s actually helping the housing market.
“Due to the amount being distributed for unemployment, it’s causing an uptick in people’s annual incomes,” he said. “So, while their annual income may normally be at $20,000-$30,000, it’s now significantly higher in several cases. Whatever you buy now will actually be cheaper than what we expect in six months to a year.”
In 2008 when the housing market did crash, there were several loan options available that weren’t backed by government agencies; but with the loan situation being significantly different now, Abdallah said the odds of another crash are very slim.
“We are in a high demand market and it’s doing very well,” he said. “There are absolutely no indicators of a crash happening in the foreseeable future.”