As a result of months of low inventory, home prices continue to escalate throughout Michigan’s housing market — however, real estate professionals are starting to see signs of progress as available inventory begins to grow.
Grosse Pointe made up for its unusual decline in closed sales with a 42 unit jump to 92 closed sales in May. Available listings continue to rise — up 12% from the prior month and 21% from a year ago. Additionally, prices have been leveling off and the average sale price is about even with last year. In Oakland County, both inventory and closed sales rose to just under 20%. Inventory levels continue to run about 10% higher than they were a year ago. Despite the additional inventory, supply levels for listings priced under $400k are less than two months and it continues to be difficult to find affordable move-in-ready homes.
In April, there were 11,124 homes on the market in Metro Detroit. In May, that number jumped by more than 1,600 listings to 12,765, but that was still down 7% from the same period a year ago, according to Realcomp. Median sale prices of homes in Metro Detroit rose 5.3% to $200,000 from the same period last year. Homes in Metro Detroit are staying on market for an average of 32 days, up from 28 a year ago, according to Realcomp. Detroit saw its median sales price rise by 14% to $42,000. There was also a 7% increase in total sales in the city compared to a year ago. In Macomb County, the median sales price grew by $6,000 to $176,000, resulting in a 3.5% increase. The median sales price in Wayne County increased by $5,500 to $142,000, resulting in a 4% increase.
West Michigan’s housing market has shot up to #13 on Realtor.com’s “hotness” index, jumping past some of California’s perennially hot housing markets. This is because few houses are available for sale in Grand Rapids and don’t stay on the market very long. Unlike the California “hot” markets, West Michigan’s housing market is attracting new homebuyers because housing is relatively affordable. Homes in the Grand Rapids-Wyoming area staying on market for a median of 31 days. The average price of a home sold in the Grand Rapids area was $207,105, a 9.3% increase over the previous year. Other Michigan cities featured on Realtor.com’s “hottest” index were Ann Arbor, which was listed at #15 and Detroit-Warren-Dearborn, which was listed at #18. In Ann Arbor, houses were on the market for a median of 37 days while in Detroit-Warren-Dearborn, they were on the market for a median of 40 days.
Although the housing market in southeast Michigan still favors the seller as home prices continue to climb, buyers are beginning to find wiggle room at some price points and geographies.
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