City Manager: Sterling leads county in rising housing values

By: Eric Czarnik | Sterling Heights Sentry | Published February 27, 2015

 This home is still in the process of being built. According to the city of Sterling Heights, foreclosures have recently declined and home values have increased.

This home is still in the process of being built. According to the city of Sterling Heights, foreclosures have recently declined and home values have increased.

Photo by Erin Sanchez

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STERLING HEIGHTS — Sterling Heights city officials are right at home with statistics showing that home prices are on the road to recovery within the city.

During a Feb. 17 City Council meeting, City Manager Mark Vanderpool said Sterling Heights property values are on the rise.

He cited statistics stating that Sterling Heights’ city assessment values have increased 15.29 percent on average, which is the highest listed on the city’s chart, beating 23 other listed communities in Macomb County. The county average is an 11.63 percent increase.

“The fact that property values are going up over 15 percent in Sterling Heights is really good news for homeowners,” Vanderpool said. “Often, in most cases, a home is an individual’s most valuable asset, so it’s a good sign when you see that asset going in a positive direction.”

Vanderpool explained that assessed values “fell off the cliff” when the housing market crash took place, then bottomed out in 2011. He said prices have made a “pretty sizable jump” in the past two years.

“We hope the trend continues,” he said.

Due to the provisions in Michigan’s Proposal A, taxable values have been climbing at a much slower rate than home values, the city manager explained. He said taxable values most recently increased by 1.6 percent, and he doesn’t see them returning to their 2008 peak until the year 2025 or 2026.

Vanderpool said he made the announcement in advance of residents getting their property assessment notices in the mail.

During public comment, Michael Radtke, a Shelby Township resident who is interested in moving to Sterling Heights, said people want to live in the city because they see the good things it is doing.

“You’re making the city more of a family-friendly place where people want to live, work … raise their kids with the new restaurants and businesses you’re attracting,” he said. “You see that people want to spend their money here and do great things.”

The housing value increases follow Vanderpool’s January report of 2014 data showing that foreclosures have considerably dropped in Sterling Heights in recent years. The city’s 2014 rate of 4.2 per 1,000 parcels was a 79 percent decline from the foreclosure peak in 2010, and the 4.2 rate was also below the county average of 5.3 foreclosures per 1,000 parcels.

In January, Vanderpool also announced several developments within the city where new homes are being built, with some of them valued between the upper $300,000s to the lower $400,000s.

Learn more about Sterling Heights by visiting www.sterling-heights.net or by calling (586) 446-2489.

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