National Real Estate Commentary
U.S. existing-home sales increased for the first time in 5 months, as lower mortgage rates and rising supply helped boost market activity. According to the National Association of REALTORS® (NAR), sales of previously owned homes rose 1.3% month-over-month to a seasonally adjusted annual rate of 3.95 million units, exceeding economists’ expectations and ending the downward trend of recent months.
Nationally, total housing inventory edged up 0.8% from the previous month to 1.33 million units heading into August, for a 4.0-month supply at the current sales pace, NAR data shows. Although inventory is up nearly 20% compared to the same time last year, demand continues to outpace supply, putting upward pressure on sales prices. According to NAR, the nationwide median existing-home price rose 4.2% year-over-year to $422,600 at last measure, marking the 13th consecutive month of annual price increases.
August-Local Activity
Closed Sales decreased 8.6 percent for Residential homes and 4.4 percent for Condo homes. Pending Sales decreased 6.1 percent for Residential homes and 5.3 percent for Condo homes. Inventory increased 13.7 percent for Residential homes and 29.2 percent for Condo homes.
The Median Sales Price increased 5.4 percent to $275,000 for Residential homes and 9.1 percent to $275,000 for Condo homes. Days on Market increased 14.8 percent for Residential homes and 6.9 percent for Condo homes. Months-Supply of Inventory increased 13.6 percent for Residential homes and 35.0 percent for Condo homes.
“Inventory levels have been trending up all year and August saw a jump of more than 2,000 homes on the market over the previous month,” said Karen Kage, CEO, Realcomp II Ltd. ”It’s been a long time coming and we look for it to continue, giving buyers more options.”
August Y-O-Y Comparison -- Residential & Condos Combined -- All MLS
- New Listings increased by .7% from 14,289 to 14,389.
- Pending Sales decreased by 6.0% from 10,435 to 9,811.
- Closed Sales decreased by 8.1% from 10,875 to 9,993.
- Average days on Market (DOM) increased by 4 days from 27 to 31.
- Median Sale Price increased by 5.8% from $260,000 to $275,000.
- Percentage of last list price received decreased slightly by 1% from 100.3% to 99.3%.
- Inventory of Homes for Sale increased by 15.6% from 19,283 to 22,282.
- Months-Supply of Inventory increased by 13.6% from 2.2 to 2.5.
- Average Showings per Home stayed about the same, moving slightly from 7.6 to 7.7.
- Listings that were both listed and pended in the same month were at 4,368. This represents 30.4% of the new listings for the month and 44.5% of the pended listings.
August 5-Year Perspectives -- Residential & Condos Combined -- All MLS
August 5-Year Perspectives -- Residential & Condos Combined – City of Detroit Numbers
August 5-Year Perspectives -- Residential & Condos Combined -- Livingston County
August 5-Year Perspectives -- Residential & Condos Combined -- Macomb County Numbers
August 5-Year Perspectives -- Residential & Condos Combined -- Oakland County Numbers
August 5-Year Perspectives -- Residential & Condos Combined -- Wayne County Numbers
*high points noted with an asterisk.
Note: These numbers represent real estate market activity in the lower part of Michigan. 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, 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, Terri Fratarcangeli, EVP, 810-225-1100
- NOCBOR, Patricia Jacobs, EVP, 248-674-4080
