Home sales and the median sales price inched up in the first half of the year, according to the 2019 mid-year review from the RE/MAX of Southeastern Michigan housing report. In June, home sales dropped 4.2 percent year-over-year.
During the first half of 2019, home sales increased 0.5 percent year-over-year to 22,418 homes sold. This is up from 22,316 in 2018 and down from 23,745 in 2017.
The median sales price increased 3.6 percent to $212,452 from 2018, when the price was $204,988. In 2017, the median sales price was $190,317.
Houses spent an average 39 days on the market so far in 2019, up three days from 2018 and one day from 2017.
“We have seen an interesting market so far this year, with each month providing a different story,” says Jeanette Schneider, vice president of RE/MAX of Southeastern Michigan. “Overall, home sales are up, and values have continued to rise at a moderate pace. Many market factors are working in favor of buyers such as unexpectedly low interest rates, low unemployment, and overall consumer confidence.
Buyers continue to be challenged with a shortage in the availability of homes for sale. Sellers benefit from strong buyer demand and a shortage of homes, allowing them to sell in a relatively quick time frame. Market conditions across all metro Detroit was similar, with Livingston County leading the way on increase in sales and the city of Detroit posting the highest increase in median prices.”
In Livingston County, 1,282 houses were sold so far this year, up 5.3 percent from 1,218 the previous year. Detroit saw a 4.8 percent increase to 2,037 homes, and Wayne and Macomb counties saw increases of 1.2 and 1.1 percent to 8,597 and 5,087 homes, respectively. The number of home sales dropped 1.5 percent in Oakland county to 7,452 from 7,566 homes.
The median price jumped from $30,000 to $38,000 in Detroit, a 26.7 percent increase. Livingston, Macomb, and Wayne counties saw more modest jumps of 5.7 percent, 4.7 percent, and 4 percent to $280,000, $178,000, and $130,000, respectively. Oakland county’s median price increased 0.7 percent to $261,808.
Days on the market increased across the board with the biggest difference from 48 days to 56 days, a 16.7 percent jump, in Detroit. There were increases of 11.1 percent from 36 to 40 days in Wayne County, 10 percent from 40 to 44 in Livingston County, 8.8 percent from 34 to 37 in Oakland County, and 5.9 percent from 34 to 36 in Macomb County.
June saw a year-over-year decrease in home sales by 4.2 percent to 4,588, down from 4,788. In May 2019, 4,631 houses were sold. Nationally, home sales decreased 7.8 percent year-over-year.
Median sales price increased 1.7 percent to $222,750, up from $218,963 the previous year and $225,259 the previous month. The median sales price across the country was $276,000, a 6.7 percent year-over-year increase.
Houses spent three more days on the market, or 30 days, from June 2018 and four fewer than in May 2019. Across the country, houses spent 44 days on the market, a three-day increase from the previous year.
There was a 2.9 months supply of houses in June 2019, down from 3.3 months the year before and up from 2.7 months the month before. A supply of six months is considered balanced. Nationally, there was a 2.8 months supply.
Home sales decreased in Livingston County by 8.6 percent to 266 homes, in Wayne County by 5.9 percent to 1,661, in Detroit by 4.7 percent to 342, by 4.4 percent in Macomb County to 1,031, and by 1.4 percent to 1,630 in Oakland County.
The median sales price in Detroit increased by 32.3 percent to $41,000, 9.4 percent to $197,000 in Macomb County, and 5.9 percent to $145,000 in Wayne County. Prices decreased by 2.2 percent to $273,000 in Livingston County and by 1.4 percent to $276,000 in Oakland County.
Houses spent 56 days on the market in Detroit, an increase of 43.6 percent; 33 days on the market in Wayne County, an increase of 22.2 percent; 32 days on the market in Livingston County, a decrease of 3 percent, and 27 days on the market in Macomb and Oakland counties, increases of 8 and 12.5 percent, respectively.
“The combination of a wet spring that caused new construction closings to be delayed, continued inventory shortages, and increasing home values led to a weaker June for home sales,” says Schneider. “Pending deals are up, and other factors like favorable mortgage interest rates and buyer demand may signal an uptick for July sales.”