City of Detroit Remains Robust in February
Sales, Median Sales, On-Market Listings all on Rise

February – National Real Estate Commentary

The U.S. real estate market remains hot ahead of the spring selling season, with existing home sales up 6.7% as of last measure, according to the National Association of REALTORS®. Experts attribute the growth in sales to an uptick in mortgage interest rates, as buyers rushed to lock down their home purchases before rates move higher. Mortgage rates have increased almost a full percentage point since December, with the average 30-year fixed rate mortgage briefly exceeding 4% in February, the highest level since May 2019.

Inventory was at an all-time low of 860,000 as February began, down 17% from a year ago and equivalent to 1.6 months supply. According to Lawrence Yun, Chief Economist at the National Association of REALTORS®, much of the current housing supply is concentrated at the upper end of the market, where inventory is increasing, while homes priced at the lower end of the market are quickly disappearing, leaving many first-time buyers behind. The shortage of homes is boosting demand even further, and with bidding wars common in many markets, it’s no surprise sales prices continue to soar.

February – Local All MLS Numbers – Res & Condo Separated

losed Sales decreased 10.6 percent for Residential homes and 10.0 percent for Condo homes. Pending Sales decreased 6.9 percent for Residential homes and 10.3 percent for Condo homes. Inventory decreased 4.7 percent for Residential homes and 34.0 percent for Condo homes.

The Median Sales Price increased 14.0 percent to $220,000 for Residential homes and 14.6 percent to $220,000 for Condo homes. Days on Market decreased 14.0 percent for Residential homes and 42.3 percent for Condo homes. Months Supply of Inventory decreased 10.0 percent for Residential homes and 41.2 percent for Condo homes.

February – Local All MLS Numbers – Res & Condo Combined

February – Local All MLS Numbers – Res & Condo Combined

• Median Sale Price increased by 14.0% from $193,000 to $220,000.
• The average days on market (DOM) decreased by 18.2% from 44 to 36 days.
• The average % of the last list price received increased by 1.0% from 99.1% to 100.1%.
• New Listings decreased by 1.8% from 8,625 to 8,470.
• Average Showings per Home decreased from 15.3 to 14.4.
• Pending Sales decreased by 7.3% from 8,278 to 7,672.
• Closed Sales decreased by 10.5% from 7,740 to 6,924.
• Listings that were both listed and pended in the same month were at 4,089. This represents 48.3% of the new listings for the month and 53.3% of the pended listings.
• Months-Supply of Inventory decreased by 9.1% from 1.1 to 1.0.

February 5-Year Perspectives -- Local All MLS Numbers