Here’s a look at the Detroit Real Estate Market for March, 2017. According to a report released in March 2017 by Realcomp II, LTD., Michigan’s largest Multiple Listing Service, median home sale prices are still rising. Home sales slow down as inventory continues to remain tight. The residential home median price range is up 6.2% from 2016.
The start of the year ushered in a wave of good news about a hot stock market, higher wages and an active home sales environment. At the same time, housing prices have continued to rise, and the low inventory situation and affordability crunch has been particularly hard on first-time buyers struggling to get into the market. Nevertheless, buyer activity is easily outpacing seller activity in much of the country, culminating in relatively quick sales and low supply.
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A Look at the Housing Stats
February saw a total of 4,745 condominiums, townhomes, and single family homes sell. This is down 7.2% from February 2016. That’s a great indicator of the inventory shortage. The median price range of houses that sold in the Greater Detroit Area during the month of February was $138,000. This amount shows an increase of 6.2 percent from February of 2016. Single Family Homes average sales price was $175,063.
At the end of the month, there were 16,110 homes on the market without an offer. This is down nearly 40% from last year at 26,650 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 11.1% from last year’s 63 days on market to 56 days for February 2017.
These stats are all inclusive of the Realcomp MLS report areas. Take a more detailed look at Oakland County Market Reports, Wayne County Market Reports or Metro Detroit Market Reports.
|All Average Sales||All Median Sales||Oakland Average Sales||Oakland Median Sales||Wayne Average Sales||Wayne Median Sales||Washtenaw Average Sales||Washtenaw Median Sales|
|All Single Family Home Sales:||$153,739||$122,000||$218,439||$175,000||$108,743||$74,900||$243,616||$219,000|
|Homes with a Pool:||$281,450||$281,450||$413,060||$413,060||$270,727||$199,000||$295,990||$259,755|
|Homes at Golf Communities:||$363,023||$341,500||$405,951||$352,800||$421,200||$405,000||$458,500||$452,500|
A Look at the Condo / Townhome Market
The median price range for a townhome or condo in Detroit for February 2017 was $138,000. This amount shows an increase of 6.8 percent from this time last year. Average sale price on condos was $156,560. At the end of February, there were 1,631 condominium properties on the market without an offer. The low number of condos listed shows a decrease of 42.7 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?
While this is a great market to sell your home, some sellers are beginning to worry that the shortage of homes that are giving them multiple offers is going to create a shortage of homes to chose from when they become buyers. However, even with limited inventory, buyers are still making offers. There were 5,441 pending single family homes under contract at the end of February, 2017, and 879 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 2.5 month inventory.
What does this mean if you’re buying a house in Metro Detroit?
Competition for homes has been heating up through winter. The inventory shortage has not stopped buyers from making offers on homes in the Detroit area. That may change for potential buyers if price appreciation outpaces income growth and if mortgage rates continue their upward trend. In the meantime, expect competition from multiple offers and be ready to hit the negotiation table. Check out these 5 tips for first time home buyers or, if you are just starting out, read up on the 6 steps to buying a house.
What does this mean if you’re selling a house in Metro Detroit?
It’s a great time to sell a home in Metro Detroit. Sellers are receiving 96.4 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 lenghty 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.
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