Here’s a look at the Detroit Real Estate Market for April, 2017. According to a report released on April 19, 2017 by Realcomp II, LTD., Michigan’s largest Multiple Listing Service, median home sale prices are continue to rise. Buyers snatch houses as the average days on market drops. The residential home median price range is up 9.0% year-over-year from 2016.
We can comfortably consider the first quarter to have been a good start for residential real estate in 2017. There was certainly plenty to be concerned about when the year began. Aside from new national leadership in Washington, DC, and the policy shifts that can occur during such transitions, there was also the matter of continuous low housing supply, steadily rising mortgage rates and ever-increasing home prices.
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A Look at the Housing Stats
March saw a total of 6,464 condominiums, townhomes, and single family homes sell. This is down 1.4% from March 2016. This spring is turning into a hot sellers market as inventory is scarce, driving prices higher in most areas. The median price range of houses that sold in the Greater Detroit Area during the month of March was $152,500. This amount shows an increase of 9.0 percent from March of 2016. Single Family Homes average sales price was $189,620.
At the end of the month, there were 14,660 homes on the market without an offer. This is down nearly 37.8% from last year at 23,561 active homes on the market. Now is a great time to sell as home prices are on the rise, competing homes are stalling to get on the market, and the average days on the market is 16.1% from last year’s 62 days on market to 52 days for March 2017. Take this as an excellent time to sell your Metro Detroit Home!
In Oakland County, Michigan, home sales followed similar patterns with 1,300 single family homes sold for March 2017, and 284 condominiums sold. This is an 3.6% increase in homes sold and 3.3% condos. Oakland County median price range increased 14% from March 2016 to $210,000 with single family homes sales averaging $285,249 during March 2017.
There were 54 total home sales in West Bloomfield, Michigan. 195 single family homes have not received an offer at the end of March 2017, and there remain 45 condos and town homes available. Prices are still increasing with single family homes averaging $293,109. Now is the prime time to sell your West Bloomfield waterfront or lake home.
Prices are also increasing in Farmington Hills, Michigan. With the average single family home sales price of $256,858, Farmington Hills is a highly sought after community this spring. Inventory at the end of March 2017 was 127 single family homes and only 15 condominiums.
Novi Township average sales price for single family homes is $358,476, and sellers are receiving 98.8% of their asking price in an average 33 days on market.
Commerce Township average sales price for single family homes is $277,057, and sellers are receiving 98.0% of their asking price in an average 44 days on market.
Walled Lake, Michigan average sales price for single family homes is $164,875, and sellers are receiving 97.8% of their asking price in an average 40 days on market.
These stats are all inclusive of the Realcomp MLS report areas. Take a more detailed look at how this month’s average sales compare in Metro Detroit, Oakland County, West Bloomfield, Farmington Hills, Commerce Township, and Novi below.
|All Average Sales||Oakland County||Farmington Hills||West Bloomfield||Commerce Twp||Novi|
|All Single Family Home Sales:||$190,355||$285,249||$256,858||$293,109||$276,698||$358,476|
|Homes with a Pool:||$289,004||$404,854||$356,750||$245,000||$457,000||$369,000|
|Homes at Golf Communities:||$386,383||$405,925||Browse Farmington Hills|
A Look at the Condo / Townhome Market
The median price range for a townhome or condo in Greater Detroit for March 2017 was $145,000. This amount shows an increase of 9.4 percent from this time last year. Average sale price on condos was $166,326. At the end of March, there were 1,606 condominium properties on the market without an offer. The low number of condos listed shows a decrease of 44.7 percent from last year. Detroit is a HOT Sellers market right now with 1.7 months supply of condos on the market. Consider this when pricing your home to sell.
What Does this Data Mean?
Spring 2017 is looking upwards for sellers to sell their home as we enter April. Cash buyers are winning out bids, and a marketable home sells quick with upwards of 4 or 5 offers. Certainly a shortage of homes still gives sellers pause when they become buyers. There were 7,261 pending single family homes under contract at the end of March, 2017, and 1,043 pending condo sales. The market is considered a balanced market when there are 6 months of inventory for sale. Less is considered a Seller’s market, as we see today with single family homes for sale at a 2.4 month inventory.
What does this mean if you’re buying a house in Metro Detroit?
If you haven’t bought a house before, check out these 5 tips for first time home buyers. Because we are still seeing a shortage of homes on the market, some areas are selling super fast, and at increasing prices. If you are obtaining a mortgage, get pre-approved as soon as possible and read up on the 6 steps to buying a house.
What does this mean if you’re selling a house in Metro Detroit?
April’s outlook appears to be an excellent time to sell a home in Metro Detroit. Sellers are receiving 97.2 percent of their list price. Combine that with supply shortage, high demand, multiple offers and you can sell fast if you price it properly at the outset. Setting your asking price right the first time is important and can reduce the risk of delays and lengthy negotiations.
Using a skilled Realtor can help you reduce the risk of delays and lengthy negotiations. In fact, we can help you time the sale of your house and make your new purchase without being left homeless, or stuck with 2 payments. Ask us how we can help you avoid the pitfalls newer agents overlook.
|Fastest Selling (Avg. Days on Market [DOM] of 35 or less) Communities (with 10 or More Sales) YTD|
|1||Lathrup Vlg—14 DOM|
|2||Holly Vlg—18 DOM|
|3||Detroit (Mack to Harper Woods-Conner to Gratiot)—23 DOM|
|4||South Lyon—26 DOM|
|5||Detroit (6 Mile to Mack-I-75 to Conner)—26 DOM|
|8||Wolverine Lake Vlg—27 DOM|
|10||Hazel Park—29 DOM|
|11||Oak Park—29 DOM|
|12||Montrose Twp—30 DOM|
|14||Livonia—31 Days on Market|
|15||Pinckney Vlg—32 Days on Market|
|16||Walled Lake—32 Days on Market|
|17||Handy Twp—32 Days on Market|
|18||Novi—33 Days on Market|
|19||Northfield Twp—35 Days on Market|
|20||Rochester—35 Days on Market|
|21||Ferndale—35 Days on Market|
|22||Hamtramck—35 Days on Market|
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