like our clocks this past weekend, the Michigan housing market will
soon “spring forward”, signifying one of the busiest times in the home
buying and selling season. For Michigander’s, harsh weather battered
much of the southeast last month, which pushed back market activity, as
evidenced by the steep decline in inventory.
Michigan’s housing market continues to favor sellers as the number of homes for sale continue to lag behind buyer demand. Although the number of new listings in Oakland County increased to begin the new year, inventory remained stagnant dropping by 284 homes from 1,698 in January to 1,414 in February. The inventory of homes for sale in Oakland County fell 11.6% in February compared to the year prior. This comes as the average home selling price increased from $287,501 in February 2018 compared to $289,335 in February 2019. A total of 904 homes were sold in Oakland County in February compared to 825 the year prior, an 8.8% percent increase. New home listings also saw a dip from the year prior falling from 4,106 homes in February 2018 to 3,797 in February 2019.
Compared to February 2018, Monroe County saw the largest percentage decrease in home listings at 58.8% while Jackson County saw the largest percentage increase at 22%. Additionally, Jackson County is one of three Michigan counties that rank among the top 25 most affordable housing markets in the country.
No. 21 Jackson County, Michigan
Income needed to buy a house: $35,767
Average annual wages: $47,879
Q4 median sales price: $120,000
Housing units: 69,047
Clearly, inventory issues are putting a burden on buyers as home sale prices continue to rise and this trend continues to hold true in Detroit where overall sales continue to slow while pending sales are increasing. Remember, pending home sales will turn into homes sold, so that is a brief look into the future of our real estate market. The median sales price for the City of Detroit grew by 17%. In Macomb County, the market’s median price reached $166,000, resulting in a 4.3% increase, while Wayne County grew by 2.%, totaling $122,750. Additionally, the City of Detroit has been ranked No. 2 for sellers in Coldwell Banker Real Estate’s The Report: State of Luxury 2019.
Demand for housing has remained strong as mortgage rates head towards historic lows. Even with an increase in rates forecasted for 2019, buyers are increasingly jumping off the fence and into the market to secure a lower rate and lock-in an affordable mortgage. That said, 2019 could be an ideal year to buy a home, especially if you’re a first-time homebuyer.
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