Metro Detroit Leads Nation in Real Estate Closings, Price Increase in RE/MAX Report
RE / MAX released its National Housing Report for May 2021, which shows that metropolitan Detroit leads the way in property closings and average price increases. // stock photos
RE / MAX released its National Housing Report for May 2021, which shows that the typical increase in sales for this time of year did not occur – there was a 0.2 percent decrease from April and house prices relatively unchanged in the 53 metropolitan areas covered.
Another broken trend was the 7.1 percent decline in publicly traded homes during a time of the year when inventory is rising for a peak month of sales in the summer.
“The first small step towards a more balanced market could have taken place in May when house prices finally stabilized after a long series of sustained increases. At the same time, refrigerated sales bucked typical April-May trends, and reporting records were set for low inventory and fast turnaround times, ”said Nick Bailey, President of RE / MAX.
The Metro Detroit market saw the largest increase in completed deals to 4,549 deals compared to 1,923 last year – an increase of 136.6 percent. The area also had the fifth largest percentage growth in the average sales price at 36, which has increased from $ 192,000 to $ 250,000.
The pandemic skewed results from year to year. The averages from April to May from 2015 to 2019 show what is typical.
- While home sales in May 2021 fell by 0.2 percent compared to the previous month, the average increase in 2015-2019 was 13.9 percent from April to May. Year-on-year sales rose by 53.4 percent.
- The median May sales price of $ 320,000 was the same as April, compared with a typical 3.2 percent increase from April to May. Year-over-year, the price is 17.0 percent higher in May than it was in May 2020 at $ 273,498.
- Instead of the 7.1 percent decline from April to May, inventory typically grows 1.8 percent. In a year-on-year comparison, inventories decreased by 43.0 percent.
Albuquerque, NM; Hartford, Connecticut; Providence, RI; Las Vegas, Nevada; and Indianapolis, Indiana, were the five markets with the sharpest year-over-year decline in inventory supply.
Burlington, Vt .; Boise, Id .; Raleigh-Durham, NC; Omaha, Neb .; and Pittsburgh, Pennsylvania, were the five markets with the sharpest year-over-year decreases in market days.
“May had something for everyone – buyers finally got a price brake, sellers benefited from a lack of competitive inventory, and both sides were served by faster offer times to close,” says Bailey. “The market is still mostly leaning towards sellers, but we could see the first signs of a return to more equilibrium after the hottest selling period in years. Ultimately, that would be good for both buyers and sellers. “