The residential real estate market in metro Detroit remains steady despite a decrease in November sales.
As the industry enters the slower winter months, home sales data show several familiar trends — shrinking inventory and rising median sales prices, for example — with some deviations, such as a big decline in the number of units sold in the city of Detroit.
Total home sales in metro Detroit for November fell 5.2 percent year over year from 4,491 to 4,256, according to monthly data from Farmington Hills-based Realcomp Ltd. II. Karen Kage, CEO of Realcomp, said the decline is relatively small and numbers are still healthy heading into winter.
Median home sales prices for the market increased 7.8 percent from $179,000 to $193,000.
The number of days on the market — a key metric for the health of the industry — rose 5.9 percent to 36. That follows a 13 percent increase last month. The increase could signal a cooldown in the market, but experts have pinned it more so to a decline in options for home buyers and their willingness to wait longer.
Total sales in Detroit fell 23.2 percent from 409 to 314 — an unusually large decline compared to recent data, which shows number of units sold generally trending up as Detroit becomes a hotter real estate market.
Darralyn Bowers, owner of Bowers Realty & Investments Inc., said she does not think the number decline translates to depressed activity. More likely, she said, it is attributable to the Wayne County Tax Foreclosure Auction in September and ramped-up efforts to sell homes owned by the Detroit Land Bank. Bowers said more investors purchased homes recently through those channels, which are not recorded in MLS data.
"The number will bounce back up because there's a lot of interest in Detroit," she said. "If it looks like the market is going down, it's not. There's a great deal of activity."
While number of units sold is down in Detroit, the median sales price in the city climbed 19.4 percent to $47,000, and the number of on-market listings increased 3.9 percent to 2,324.
Mortgage rates were down more than a percent from the same time last year, which is helping fuel home sales in the region. The number of new housing permits increased 5 percent in October to a new 12-year high of 1.46 million units — a promising sign as the inventory shortage persists.
Kage said she expects to see the same trends in December.
"We don't really have any indications that things are going to fall back," she said. "It's just been a really steady year."
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December 18, 2019 at 12:01PM
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Metro Detroit home sales dip in November - Crain's Detroit Business
"sales" - Google News
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