Here’s a look at the Detroit Real Estate Market for June 2017. According to a report released on June 15, 2017, by Realcomp II, LTD., Michigan’s largest Multiple Listing Service, Median Home Sale Prices are still soaring! Inventory drops again this month by 35.8% year over year, while the residential, single family home median price range is up 6.9% year-over-year from 2016.
Home prices across the U.S. are reaching all-time highs, prompting worry over another boom-and-bust scenario like we experienced roughly ten years ago. Yet, as we glance across the state of residential real estate, what is clear compared to the last extended run of price increases is that lending standards are now much stronger than they were before. Incomes must be verified, a reasonable amount of money must be paid toward the home prior to purchase and a more stringent loan approval process is in place to prevent a repeat performance of the Great Recession.
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- A Look at the Housing Stats
- A Look at the Condo / Townhome Market
- What Does this Data Mean?
- Fastest Selling Communities May 2017
A Look at the Housing Stats
In addition to a stronger base upon which to conduct real estate transactions, the overall economy is in better shape than it was a decade ago. More jobs are available, unemployment is relatively low and workers have more faith in their wages and the potential for wage increases. Although we continue to battle an inventory shortage in much of the country, optimism remains high for a successful summer for buying and selling homes.
— Realcomp II, LTD.
The median price range of houses that sold in the Greater Detroit Area during the month of May was $171,000. This amount shows an increase of 6.9 percent from May of 2016. The Single Family Homes average sales price was $208,252. That’s a 9.8% gain from one year ago!
At the end of the month, there were 16,108 homes on the market without an offer. This is down nearly 35.4% from last year at 24,943 active homes on the market. Now is a great time to sell as home prices are still rising, competing homes are stalling to get on the market, and the average days on the market is 14.0% less from last year’s 50 days on market to 43 days for May 2017. Take this as an excellent time to sell your Metro Detroit Home!
In Oakland County, Michigan, home sales followed similar patterns with 1,669 single family homes sold for May 2017, and 296 condominiums sold. This is an 7.4% increase in homes sold and 8.4% decrease in condos. Oakland County median price range increased 9.7% from May 2016 to $254,500 with single family homes sales averaging $299,447 during May 2017.
West Bloomfield Township
There were 69 total home sales in West Bloomfield, Michigan. 267 single family homes have not received an offer at the end of May 2017, and there remain 55 condos and town homes available. Prices dropped 1.8% for West Bloomfield year-over-year to an average $320,002. The beginnig of summer is the best time to sell your West Bloomfield waterfront or lake home.
Prices are also increasing in Farmington Hills, Michigan. The average single family home sales price is $291,970, up from $273,991 last month. Inventory at the end of May 2017 was 170 single family homes and only 9 condominiums.
Commerce Township average sales price for single family homes is $292,108, and sellers are receiving 100.1% of their asking price with only an average of 21 days on market. Commerce Township is heating up this summer!
Walled Lake, Michigan average sales price for single family homes is $212,250, a huge gain from last months average $171,800. Sellers are receiving 99.2% of their asking price in an average 5 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.
A Look at the Condo / Townhome Market
The median price range for a townhome or condo in Greater Detroit for May 2017 was $152,000. This amount shows an increase of 12.6 percent from this time last year. Average sale price of condos was $174,998. At the end of May, there were 1,754 condominium properties on the market without an offer. The low number of condos listed shows a decrease of 39.5 percent from last year. Detroit is a HOT Seller’s market right now with 1.8 months supply of condos on the market. Consider this when pricing your home to sell.
What Does this Data Mean?
Summer 2017 is off to a hot race! Keep in mind that it takes more than putting your home on the market. This season many homeowners try to sell their homes on their own but end up hiring a seasoned Realtor.
Read our tips on how to avoid seller frustrations as we begin the summer season. Marketable homes still command 4 or 5 offers and don’t stay on the market long. There were 8,173 pending single family homes under contract at the end of May 2017, and 1,187 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 2.6 month inventory, and 1.9 month inventory on condos.
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?
June’s outlook appears to be an excellent time to sell a home in Metro Detroit. Sellers are receiving 98.2 percent of their list price. Combine that with a 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 Communities May 2017Avg. Days on Market [DOM] of 35 or less, with 10 or More Sales YTD
|1||New Haven Village||14 Days on Market|
|20||Ann Arbor Township||20|
|39||Detroit-Mack Ave to Harper Woods-Conner St to Gratiot Ave||33|
|42||Wolverine Lake Village||34|
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