Rising prices for homes and condos in metro Detroit may be impacting buyer eligibility, based on a report released today by Farmington Hills-based Realcomp.
While the average single-family home or condominium in the region sold for $126,000 in January, up 14.5 percent when compared to the same time last year, the report shows just 3,070 sales, down 8 percent from January 2014.
“(Rising) prices are causing people to step back a little bit, to take a bit longer to make that choice and maybe wait to see what else is coming on the market,” says Karen Kage, CEO of the multiple listing service. “We certainly can’t blame it on the weather because the weather last year was just as bad — if not worse — than what we’re having now.”
Homes and condos sold for $79,000 in Wayne County, up 21.7 percent when compared to the same time last year, while prices in Macomb County increased to $119,000 (up 13.3 percent). Likewise, Oakland County saw a 12.9-percent increase to $175,000 last month, and Livingston County experienced a 6-percent jump to $190,000.
Kage describes the current housing market as a healthy one in which everyone benefits. “It’s a sellers market because the prices have come up, and it continues to be a buyers market because the interest rates are still so far down.”
The increase in confidence is also contributing to a larger selection for buyers to browse. In fact, the Realcomp report shows that there were 14,480 homes and condos listed for sale in January, up 7.5 percent when compared to 2014.
“People are starting to see that they can get the value out of their home that they’ve been needing in order to make that move,” Kage says. “They’re finally recognizing that the wait is over.”