Estate professionals and economists are sounding more upbeat toward the
housing market and Realtor.com® has revised its 2019 housing market
forecast, reflecting optimism for a much stronger market as we head into
the summer months.
Lower mortgage rates are mostly behind this optimistic shift in attitude, with projected rates averaging 4.5% by the end of the year—nearly a percentage point lower than originally forecasted. The lower mortgage rates are increasing buyers’ purchasing power, however, the continued uptick in home prices and slimmer inventories have made it tough for many first-time home buyers. There are still good options for buyers, as long as they expand their geographic horizon and right-size their expectations.
Nationally, home sales are down 8.6%, but in metro Detroit, home sales are up 8%. Home prices in southeast Michigan are up nearly 5% since last year and communities in Macomb County continue to see the largest amount of growth overall. Fully updated starter homes are in shorter supply, but the demand for high-end homes is strong and low interest rates make financing them easier. Macomb has been Michigan’s fastest growing township regarding single-family housing for the past three years, according to Macomb Township Supervisor, Janet Dunn.
In Oakland County, the year-to-date median sales price increased 2.6% to $259,500. Although the number of new listings has increased 3.4%, it’s the amount of available inventory that remains much lower dropping by 334 homes from May 2018. Across southeast Michigan, the number of homes for sale has decreased 9%, from 23,893 to 21,561, when compared to May 2018 while the median sales price has increased 5.7% from $175,000 to $185,000. Another staggering number is the average days on market year-over-year change for the metro Detroit housing markets, which includes Oakland County. That number has increased 28 days to 32 days.
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