Metro Detroit February Home Prices Spike, Sales Fall

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tA decrease in available inventory led to the average single-family home or condominium in metro Detroit selling for $107,000 in February, up about 34 percent from the year before, says a new monthly report by Realcomp in Farmington Hills. However, the low inventory and the extreme cold winter also resulted in a nearly 14 percent year-over-year decrease in sales.

t“From hearing from our customers, I think a lot of (the low inventory) has to do with the weather,” says Karen Kage, CEO of Realcomp, the Realtor-owned multiple listing service. “It’s funny, they say it hasn't interfered with the buyers, but the sellers might be waiting until (the weather) breaks a little bit.”

tKage says the next few months should be very telling about what kind of spring market the housing industry will have. “We’re excited about the prices coming up, and we’re hoping to see more sales than we have been. We have the days (for a home on the market) at 52 days — less than two months from listing to closing — which is amazing,” she says.

tWhile warmer weather may lead to increased listings, buyers may still find the market too competitive, Kage says. “A lot of times those that are selling are also looking to buy, so that can have some affect as well,” she says.

tOf the 3,074 metro Detroit residences sold in February, about 33 percent were foreclosure sales compared to about 36 percent of foreclosure sales for the same period last year.

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