Housing Permits Edge Upward But Still Not Meeting Demand

"The market is clearly crazy," says CEO Bob Filka.

July 30, 2018 - 1:01 pm

DETROIT (WWJ) - Housing permits for single-family home construction have increased nearly four percent in Michigan during the first half of this year, but production is not meeting the demand.

Bob Filka, CEO of the Home Builders Association of Michigan, says this is a crazy time for home buyers and builders. 

"Anybody that's in search of a home or has a family member that's trying to find a house knows that the market is clearly crazy in many markets and the availability of housing stock is limited in the state and demand for housing is clearly pushing upward," says Filka. 

Filka says they need more people to go into the building trades and attract housing investment to turn things around.

A number of factors go into the slim market for homebuyers including the shortage of contractors and laborers to build -- pushing build time in areas from six months to over a year. 

First-time buyers looking to scoop up a home under $150,000 are the most challenged in this market. The few homes that are coming onto market in that price range become the objects of bidding wars that can top dozens of offers on an individual property. 

It's great news for sellers but buyers have to pack their patience in addition to moving boxes in this 2018 market.