The median sales price of existing homes in metro Detroit rose 13.6 percent to $242,875 in January, as compared to $213,850 the previous year, according to a new report from RE/MAX of Southeastern Michigan in Troy.
In December 2020, the median sales price was $229,250. The national median sales price increased 11.8 percent to $285,000.
At the same time, the supply of homes for sale in metro Detroit hit a record low in January with a 1-month supply, down from a 1.3-month supply in December 2020 and 2.3-month supply in January 2020.
A supply of six months is considered balanced. Nationally, there is a supply of 1.7 months.
In January, home sales increased 4.7 percent year-over-year to 2,988 homes sold. This is a decrease from December 2020’s 5,426 homes sold. Pending sales, which RE/MAX of Southeastern Michigan reported for the first time, was up 6.3 percent from the previous year’s 3,278 to 3,485 homes. Nationally, home sales increased 13.5 percent from January 2020.
Homes spent 34 days on the market on average, which is the same as in December 2020 but an 18-day drop from January 2020. Nationally, homes spent 40 days on the market, a 19-day drop.
“Incredibly low inventory once again led to competition among buyers and helped to push home prices higher,” says Jeanette Schneider, vice president of RE/MAX of Southeastern Michigan. “This dynamic, when combined with a strong millennial buyer pool and people choosing to make a move because they can work from home anywhere, indicate this will be a strong year for real estate. The supply of homes dipped to a one-month supply, and buyers need to be prepared to act quickly even in this winter market.”
Home sales increased the most in Macomb County, up 12.2 percent to 709 homes sold year-over-year. Oakland County followed, with a 7.5 percent increase to 985 homes sold. In Livingston County, 175 homes sold, a 1.7 percent increase. Home sales decreased by 14.9 percent in Detroit to 246 homes and by 1.2 percent in Wayne County to 1,119 homes sold.
Homes sold for the highest median price – $320,000 – in Livingston County, an 8.5 percent increase. The next highest was Oakland County, where homes sold for $284,500, an 11.6 percent increase. Homes sold for $212,000 in Macomb County, a 17.8 percent increase. Increases in Wayne County and Detroit were the highest, with a 23.5 percent increase in Wayne County to $155,000 and a 65.8 percent increase to $63,000 in Detroit, up from $38,000.
Homes spent an average 55 days on the market in Detroit, the same as the year before. Homes spent fewer days on the market than last year in all four counties – 40 days in Livingston, a drop from 57 days, 35 days in Oakland from 53 days, 33 days in Wayne from 47 days, and 29 days in Macomb from 49 days.