According to a Federal Reserve Bank of Chicago report 2012 was the year when the auto production in Michigan reached its highest level since 2007.
Last year auto production in Michigan increased 3.5% to 2.26 million vehicles, with 1.12 million units more than in 2009, when production fell to the lowest level seen in decades (1.14 million). Auto sales were up 13% to 14.5 million units compared with 2011 and 40% above 2009 (10.4 million units). According to the report Michigan’s total economic output is expected to increase 0.8% to $340 billion for 2012, 9% less compared with the 2006 level.
Although housing prices have seen a slight rebound, the average housing price in Detroit is still down 24% compared with the 2000 level and almost 50% less compared with the 2006 level. In Michigan average housing price has dropped 25% since 2006, with 967 housing starts in November, up 41% from 2011. Just to make a comparison, in 2005 Michigan started 4,560 homes a month.
“Michigan’s housing market is showing some minor improvement, which may be an indication that the housing sector is on the mend,” said Federal Reserve Bank of Chicago economist Paul Traub.