Positive Sign for Home Buyers: Inventory Levels Up YOY
Detroit Sees 45% increase, +10% average for MLS overall

May – National Real Estate Commentary

After two years of record-setting activity, there are signs the housing market might be cooling. High home prices and a surge in mortgage interest rates are slowing buyer activity, with home sales declining for the third consecutive month under the weight of soaring homeownership costs. The National Association of REALTORS® (NAR) reports existing home sales were down 2.4% from the previous month, while pending sales fell 3.9% as of last measure, extending the trend of recent months. Economists predict sales will continue to soften in the near future, which may put downward pressure on home prices.

The slowdown in sales has provided a much-needed lift to housing supply, with inventory up 10.8% from the previous month according to NAR, although supply remains down 10.4% compared to this time last year, with only 2.2 months’ supply of homes at the current sales pace. As the nation continues to explore ways to solve the ongoing housing shortage, estimated at 5.5 million homes, the Biden administration recently unveiled the Housing Supply Action Plan, which aims to expand housing access through a number of administrative and legislative actions and help relieve the nation’s housing crisis over the next 5 years.

May – Local All MLS Numbers – Res & Condo Separated

Closed Sales decreased 6.3 percent for Residential homes and 9.5 percent for Condo homes. Pending Sales decreased 6.3 percent for Residential homes and 10.5 percent for Condo homes. Inventory increased 13.5 percent for Residential homes but decreased 6.5 percent for Condo homes.

The Median Sales Price increased 10.1 percent to $256,000 for Residential homes and 10.8 percent to $241,000 for Condo homes. Days on Market decreased 16.0 percent for Residential homes and 40.5 percent for Condo homes. Months Supply of Inventory increased 27.3 percent for Residential homes and 7.7 percent for Condo homes.

May – Local All MLS Numbers – Res & Condo Combined

May – Local All MLS Numbers – Res & Condo Combined

• Median Sale Price increased by 10.8% from $230,000 to $254,900.
• The average days on market (DOM) decreased by 22.2% from 27 to 21 days.
• The average % of the last list price received increased by .8% from 102.1% to 102.9%.
• New Listings increased by 5.5% from 15,128 to 15,964.
• Average Showings per Home decreased by 4 from 15.4 to 11.4.
• Pending Sales decreased by 6.8% from 12,569 to 11,713.
• Closed Sales decreased by 6.7% from 11,220 to 10,466.
• Listings that were both listed and pended in the same month were at 7,152. This represents 44.8% of the new listings for the month and 61% of the pended listings.
• Months-Supply of Inventory increased by 16.7% from 1.2 to 1.4.

May 5-Year Perspectives -- Local All MLS Numbers

Realcomp Shareholder Boards & Associations of REALTORS®:

• DABOR, 313-278-2220
• DAR, Sharon Armour, EVP, 313-962-1313
• ETAR, Laura VanHouteghen, 8010-982-6889
• GMAR, Vickey Livernois, EVP, 248-478-1700
• 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