Americans, including Michigan residents, are starting to feel better about the economy, and the improvements in the housing market are proof of that.  An October Gallup poll shows that for the first time in over 5 years, more people are beginning to feel comfortable about the economic shifts than a year ago.

“This is not the U.S. consumer of previous recessions, by far,” says Sean Snaith, director of the Institute for Economic Competitiveness at the University of Central Florida. The recent spate of good news about housing isn’t enough to unleash the levels of consumer spending we saw before the recession, he adds.

What does that mean for the housing market here in Michigan?

Optimistic consumers are more likely to spend which can help to further improve the economy.  While some might speculate that this could create a rush on housing and push home values up throughout cities in metro Detroit, the comfort people are feeling with the economy isn’t likely to cause ripples to that extent.

Unlike the past when housing lifted the economy out of a recession somewhat quickly, we’re more likely to a see a slow and steady increase in the economy due to the fact that people are more cautious this time around.

That still leaves plenty of time to start planning for a mortgage in Michigan, but it’s not something you could sit on for an extended period.  Mainly because home prices and sales have been on an upswing and foreclosures are starting to disappear from the market.

In regards to the economic recovery, Snaith says it has been by and large underwhelming.  ” It’s not surprising people will look to housing as an economic indicator because housing was one of the major factors that got us into the recession and has played a part in its difficult and subdued recovery”.

While we’re seeing improvements in financial markets, the changes in the housing market have all been fairly recent.  Many homeowners in cities like Royal Oal, Novi and Northville as well as areas throughout Wayne county are going to remain motivated to sell which could bring about continued lower listing prices.  For a first-time home buyer this is still a great time to work with a Michigan mortgage lender to get a great rate on a mortgage and a lower cost on a new home.