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Rising mortgage rates squeezing some Michigan housing markets

Steve Carmody
Michigan Radio

Michigan didn’t see home sale prices rise as sharply as other parts of the country in recent years.

But a new report finds Michigan housing markets are not seeing the sharp declines hitting previously hot now cooling real estate markets across the U.S.

ATTOM is a company that tracks the real estate industry.

The company’s U.S. Home Sales Report released Thursday shows profit margins on median-priced single-family home and condo sales across the United States decreased in the third quarter. It’s the first decline in almost three years.

The drop-off in typical profit margins came as the median national home value went down 3 percent quarterly, to roughly $340,000.

Some Michigan real estate markets are also feeling the effects of rising mortgage rates.

“You’re seeing year over year seller gains drop in Lansing(-7.8%), in Kalamazoo (-7.2%)and in Ann Arbor (-6.1%) at rates that are similar to what we’re seeing nationally,” said Rick Sharga, executive vice president of market intelligence at ATTOM.

But Sharga says Detroit(+1%), Flint (+6.5%) and Grand Rapids (+5%) actually posted gains in the third quarter.

However, he expects rising mortgage rates will likely soon result in lower home sale prices across the U.S. and Michigan.

Steve Carmody has been a reporter for Michigan Public since 2005. Steve previously worked at public radio and television stations in Florida, Oklahoma and Kentucky, and also has extensive experience in commercial broadcasting.