49411, Free Soil, MI

The 49411 zip code of Free Soil, MI is located in the Upper Peninsula of Michigan. The population of this zip code was 5,811 as of the 2010 census. The median home value in this zip code was $128,000 as of the 2010 census.

Home equity is a key factor in homeownership and home prices. Home equity is the difference between the market value of a home and what a homeowner owes on that home. Home prices are generally determined by two factors: demand and supply. Demand for homes is driven by interest rates, income levels, and other economic factors. Supply is driven by available inventory and trends in construction.

In general, when demand for homes increases, prices go up because more people are interested in buying homes. When supply decreases due to an increase in demand or a decrease in availability, prices go up because there are fewer homes available for purchase. In Free Soil, MI, there has been an increase in demand for homes over the past few years due to an increase in income levels and interest rates. This has caused home values to rise significantly relative to incomes and other market conditions over that time period (see Figure 1).

Figure 1: Median Home Values vs Income Levels from 2000-2010

As you can see from Figure 1, median home values have increased much faster than incomes over the past decade or so (although incomes have also increased). This trend may be changing as incomes continue to grow but there remains significant upward pressure on home values relative to incomes across most markets nationwide (see Figure 2). This pressure on prices can be difficult for some buyers to overcome even with good credit scores and adequate down payments; it can be especially challenging for first-time buyers who do not have any equity built up from previous purchases or who have lost their jobs or experienced other financial setbacks during these tough economic times (see Figure 3). For those buyers who do manage to overcome these obstacles however - especially if they live within reach of a desirable area - buying a house can be one of the most rewarding investments they will ever make (see Figures 4 & 5).