Here’s a look at the Detroit Real Estate Market for May 2017. According to a report released on May 11, 2017, by Realcomp II, LTD., Michigan’s largest Multiple Listing Service, median home sale prices continue to rise in this spring cleanup. Buyers clear out houses as the average days-on-market drops further. The residential home median price range is up 10.0% year-over-year from 2016.
The employment landscape and wages have both improved over the last few years, allowing for more people to participate in the home-buying process. When the economy is in good working order, as it is now, it creates opportunities in residential real estate and right now is a potentially lucrative time to sell a home. Houses that show well and are priced correctly have been selling quickly, often at higher prices than asking. Although there is a mounting amount of buyer competition during the annual spring market cycle, buyer demand has not abated, nor is it expected to in the immediate future unless something unpredictable occurs. While strong demand is generally considered a good problem to have, it creates an affordability issue for some buyers, especially first-time buyers. And yet, prices will continue to rise amidst strong demand.
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A Look at the Housing Stats
April saw a total of 6,435 condominiums, townhomes, and single family homes sell. Comparing the number of sales last year for April 2016, this is down 4.7% for single family homes and 10.2% for condos.
So far this spring has turned into a spring cleanup as buyers eat up the inventory, creating a hot seller’s market and continuing to drive prices higher in most areas. The median price range of houses that sold in the Greater Detroit Area during the month of April was $160,000. This amount shows an increase of 9.6 percent from April of 2016. The Single Family Homes average sales price was $198,825. That’s a 12.3% gain from one year ago!
At the end of the month, there were 14,892 homes on the market without an offer. This is down nearly 38.2% from last year at 24,078 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 21.7% less from last year’s 60 days on market to 47 days for April 2017. Take this as an excellent time to sell your Metro Detroit Home!
In Oakland County, Michigan, home sales followed similar patterns with 1,387 single family homes sold for April 2017, and 247 condominiums sold. This is an 2.7% increase in homes sold and 4.6% decrease in condos. Oakland County median price range increased 7.5% from April 2016 to $236,500 with single family homes sales averaging $289,494 during April 2017.
There were 62 total home sales in West Bloomfield, Michigan. 218 single family homes have not received an offer at the end of April 2017, and there remain 41 condos and town homes available. Prices are still increasing with single family homes averaging $367,746. 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 $273,991, Farmington Hills is a highly sought after community this spring. Inventory at the end of April 2017 was 141 single family homes and only 14 condominiums.
Novi Township average sales price for single family homes is $483,279, and sellers are receiving 99.2% of their asking price in an average 40 days on market.
Commerce Township average sales price for single family homes is $281,953, and sellers are receiving 97.4% of their asking price in an average 35 days on market.
Walled Lake, Michigan average sales price for single family homes is $171,800, and sellers are receiving 100.4% of their asking price in an average 48 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:||$198,825||$285,249||$273,991||$367,746||$281,953||$483,279|
|Homes with a Pool:||$304,105||$420,689||$257,000||$479,505||$382,500||$950,440|
|Homes at Golf Communities:||$412,455||$436,419||$395,000||Browse West Bloomfield|
A Look at the Condo / Townhome Market
The median price range for a townhome or condo in Greater Detroit for April 2017 was $149,000. This amount shows an increase of 10.4 percent from this time last year. Average sale price of condos was $168,836. At the end of April, there were 1,660 condominium properties on the market without an offer. The low number of condos listed shows a decrease of 44.0 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?
Spring 2017 is looking upwards for sellers to sell their home as we enter May. Cash buyers are winning out bids, and a marketable home sells quickly with upwards of 4 or 5 offers. Certainly, a shortage of homes still gives sellers pause when they become buyers. There were 7,113 pending single family homes under contract at the end of April 2017, and 1,072 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 97.8 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 April 2017Avg. Days on Market [DOM] of 35 or less, with 10 or More Sales YTD
|1||Holly Village||18 Days on Market|
|2||Lathrup Village||23 Days on Market|
|3||Farmington||23 Days on Market|
|4||Clawson||24 Days on Market|
|5||Berkley||26 Days on Market|
|6||Livonia||28 Days on Market|
|7||Wixom||28 Days on Market|
|8||Brighton||28 Days on Market|
|9||Hamtramck||29 Days on Market|
|10||Ferndale||29 Days on Market|
|11||Keego Harbor||29 Days on Market|
|12||South Lyon||30 Days on Market|
|13||Lake Orion Village||31 Days on Market|
|14||Detroit (6 Mile Rd to Mack Ave-I-75 to Conner St)||31 Days on Market|
|15||Oak Park||31 Days on Market|
|16||Handy Twp||31 Days on Market|
|17||Walled Lake||32 Days on Market|
|18||Pinckney Vlg||32 Days on Market|
|19||Detroit (Mack Ave to Harper Woods-Conner St to Gratiot Ave)||32 Days on Market|
|20||Novi||33 Days on Market|
|21||Canton Twp||33 Days on Market|
|22||Montrose Twp||33 Days on Market|
|23||Rochester||33 Days on Market|
|24||Madison Heights||34 Days on Market|
|25||Wolverine Lake Village||34 Days on Market|
|26||Huntington Woods||34 Days on Market|
|27||Ann Arbor Township||35 Days on Market|
|28||Sterling Heights||35 Days on Market|
|29||Ann Arbor||35 Days on Market|
|30||Hazel Park||35 Days on Market|
|31||Dearborn||35 Days on Market|
|32||Imlay City||35 Days on Market|
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