Detroit Pending Sales at Highest May Levels in 5 Years
Oakland and Livingston Counties See Highest May Median Sales Prices in Half a Decade
National Real Estate Commentary
Existing-home sales slid for the second consecutive month, falling 3.4% nationwide as of last measure, according to the National Association of REALTORS® (NAR), as higher interest rates continue to impact buyer affordability. Sales are down 23% compared to the same period a year ago, while contract signings dropped 20.3% year-over-year. With sales cooling, buyers in some parts of the country have found relief in the form of declining sales prices, which are down 1.7% year-over-year nationally, although more affordable markets continue to see price gains.
While fluctuating interest rates have pushed some buyers to the sidelines, a shortage of inventory is also to blame for lower-than-average home sales this time of year, as current homeowners, many of whom locked in mortgage rates several percentage points below today’s current rates, are delaying the decision to sell until market conditions improve. With only 2.9 months’ supply heading into May, available homes are moving fast, with the typical home spending just over three weeks on the market, according to NAR.
May-Local Activity
Closed Sales decreased 14.4 percent for Residential homes and 9.1 percent for Condo homes. Pending Sales decreased 14.5 percent for Residential homes but increased 0.9 percent for Condo homes. Inventory decreased 5.7 percent for Residential homes but increased 0.8 percent for Condo homes.
The Median Sales Price increased 2.4 percent to $261,000 for Residential homes and 2.0 percent to $250,000 for Condo homes. Days on Market increased 47.6 percent for Residential homes and 38.1 percent for Condo homes. Months Supply of Inventory increased 13.3 percent for Residential homes and 12.5 percent for Condo homes.
“Of particular note this month in the May Five-Year Perspectives data are the 606 homes pending sale in the City of Detroit – a five-year May high,” said Karen Kage, CEO, Realcomp II Ltd. “And while Detroit can often be a unique market unto itself, it can also set the stage for what is to come in contiguous area markets. It will be very interesting to watch.”
May Y-O-Y Comparison -- Residential & Condos Combined -- All MLS
- New Listings decreased by 14% from 16,213 to 13,947.
- Pending Sales decreased by 12.8% from 12,050 to 10,513.
- Closed Sales decreased by 13.7% from 10,995 to 9,486.
- Average days on Market (DOM) increased by 9 days from 21 to 30.
- Median Sale Price increased by 3.2% from $252,000 to $260,000.
- Percent of last list price received decreased by 2.1% from 102.9% to 100.7%.
- Inventory of Homes for Sale decreased by 4.9% from 16,440 to 15,639.
- Months-Supply of Inventory increased by 13.3% from 1.5 to 1.7.
- Average Showings per Home increased by .1 from 11.4 to 11.5.
- Listings that were both listed and pended in the same month were at 6,018. This represents 43.1% of the new listings for the month and 52.2% of the pended listings.
May 5-Year Perspectives -- Residential & Condos Combined -- All MLS
May 5-Year Perspectives -- Residential & Condos Combined – City of Detroit Numbers
May 5-Year Perspectives -- Residential & Condos Combined -- Livingston County
May 5-Year Perspectives -- Residential & Condos Combined -- Macomb County Numbers
May 5-Year Perspectives -- Residential & Condos Combined -- Oakland County Numbers
May 5-Year Perspectives -- Residential & Condos Combined -- Wayne County Numbers
*high points noted with an asterisk.
It’s important to note that these numbers present a high-level view of what is happening in the real estate market in the lower part of Michigan and in specific regions. Be sure to contact a REALTOR® for their expertise about local markets. Find a REALTOR® in your market at www.MoveInMichigan.com.
Realcomp Shareholder Boards & Associations of REALTORS®:
- DABOR, Andrea Kuentz, Interim CEO, 313-278-2220
- DAR, Sharon Armour, EVP, 313-962-1313
- ETAR, Laura VanHouteghen, 810-982-6889
- GPBR, Bob Taylor, CEO, 313-882-8000
- LUTAR, 810-664-0271
- LCAR, Pam Leach, EVP, 810-225-1100
- NOCBOR, Patricia Jacobs, EVP, 248-674-4080
