Metro Detroit Home Sales Rebound, Median Sales Price Drops
The latest RE / MAX real estate report from southeast Michigan shows for the first time since February that the average sales price has decreased compared to the previous month. // stock photos
According to the latest RE / MAX real estate report from southeast Michigan in Troy, the sales price fell for the first time since February in metropolitan Detroit from USD 288,725 in July to USD 281,425 in August compared to the previous month.
At the same time, home sales in August – 4,196 – rose five percent from a slow July – 3,991 – while spending an average of 21 days in the market, one day more than a month, but 10 days year-on-year.
“While we had more sales activity in August than in July, seasonality returned to the market in August, with overall activity falling year-on-year as many families and potential homebuyers took time for summer activities and the last vacation before school starts,” says Jeanette Schneider, president of RE / MAX in southeast Michigan.
“This dynamic, together with the shortage of apartments available for sale, led to a decline in home sales compared to the previous year. Buyers are less likely to make a bid, and sellers are finding their home may be in the market for a few weeks before they get an offer. This is still a seller-favoring market, but it’s not the frenzy we saw early spring. “
Despite the start of positive trends in median and monthly home sales, the former is 13.2 percent higher than last August when the median was $ 248,725, while home sales in August declined 10.3 percent from 4,679 year-over-year – Year.
The monthly supply, which is considered balanced at six months, stagnated at 1.4 both from July and August last year. Home sales outstanding – 4,550 – are down 5.8 percent from last August – 4,828 – but up from July – 4,328.
County-specific data shows Livingston County is down 20.8 percent year over year, from 307 to 243. Oakland County saw the second largest drop from 1,803 to 1,588 – 11.9 percent – and Wayne County saw the third largest drop, down 9.5 percent – 1,870 to 1,692. The city of Detroit fell 4.1 percent from 365 to 360 and Macomb County fell just 3.7 percent from 699 to 673.
Despite the decline in the median sales price from July onwards, prices rose across the board by over 10 percent year-on-year. Detroit is an outlier here, up from $ 48,000 to $ 69,500 – or 44.8 percent. Macomb County ranks second, up 17.6 percent from $ 205,000 to $ 241,000. Livingston and Wayne counties both rose 12.5 percent, from $ 319,000 to $ 360,000 and $ 160,000 to $ 180,000, respectively. Oakland’s price jump was the smallest, from $ 310,000 to $ 344,700 – or 11.2 percent.
Days spent in the market are down more than 20 percent across the board. Macomb saw the smallest drop from 22 days to 28-20.6 percent. Oakland fell 28.8 percent from 30 days to 22. Livingston and Wayne counties are again similar here, with Livingston falling from 34 days to 21-37.8 percent – and Wayne falling from 31 days to 20-34.6 percent. Detroit rounds it off, down 51.8 percent from 59 days to 28.
In general, the region is in line with national trends. The national median sales price also increased by 13.2 percent year-on-year, the days spent on the market decreased by 18 days to 24 compared to the previous year and the delivery months are 1.3 months. Total home sales are the only trend with a discrepancy, with the national trend stagnating at 0.6 percent year-over-year growth while southeast Michigan is down 10.3 percent.