Low Inventory, High Prices Slow Metro Detroit Home Sales in January

According to the January 2022 housing report from RE/MAX of Southeastern Michigan in Troy, home sales continue to feel the effects of low inventory and rising prices, dropping 10.5 percent over last January.
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Wide green front lawns in traditional suburban residential neighborhood
According to RE/MAX of Southeastern Michigan’s January 2022 housing report, area home sales were slowed by a number of factors, including high prices and low supply. // Stock Photo

According to the January 2022 housing report from RE/MAX of Southeastern Michigan in Troy, home sales continue to feel the effects of low inventory and rising prices, dropping 10.5 percent over last January.

The drop — from 2,755 to 2,466 dwellings — is larger when compared month-over-month, with December 2021 seeing 3,550 home sales.

At the same time, the median sales price rose 4.8 percent to $251,750 year over year but was down from $264,375 month-over-month. Pending sales remain almost the same, dropping from 2,859 to 2,854 year-over-year and increasing from 2,819 month-over-month.

“We see many of the same factors that drove home sales and prices last year continue to be in place in 2022. Buyers remain active and are out there looking to buy,” says Jeanette Schneider, president of RE/MAX of Southeastern Michigan in Troy.

“Interest rates remain attractive, and a significant number of people have work-from-home options allowing them more flexibility in choosing where to live. Sellers continue to benefit from market conditions that in many cases offers a relatively quick sale and at favorable price and terms.”

Homes spent the same number of days on the market on average as they did last January and are only up one day — from 33 to 34 — over December 2021. The month’s supply remains low and nearly stagnant. With a six-month supply considered balanced, January had a 1.3-month supply. This is down 0.1 points both month-over-month and year-over-year.

Year-over-year data broken down by county shows Livingston saw by far the largest decrease in home sales, dropping from 169 to 111 (34.3 percent). Oakland County was second, dropping 13.4 percent from 971 to 841. Wayne County dropped 6.5 percent from 1,130 to 1,057, Macomb County dropped 5.8 percent from 485 to 457, and the city of Detroit dropped 2.1 percent from 282 to 276.

The median price was up significantly only in Detroit, jumping from a $52,500 average to $70,000 — 33.3 percent. Livingston’s average price increased from $319,000 to $338,000 (6 percent) and Wayne from $151,000 to $159,000 (5.3 percent). Macomb and Oakland counties saw the smallest, jumping from $206,000 to $215,000 (4.4 percent) and $284,500 to $295,000 (3.7 percent) respectively.

Only Livingston County saw an increase in average days spent on the market, from 32 to 34 (6.4 percent). Macomb County dropped one day, from 33 to 32. Oakland and Wayne counties saw identical drops, from 36 to 34 days. The city of Detroit dropped the largest number of days, from 59 to 52 (12.7 percent).

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