tThe average single-family home or condominium in metro Detroit sold for $120,250 in November, showing a 41.3 percent year-over-year increase, says a monthly report by Realcomp in Farmington Hills.
tThe report also found a 7.7 decrease in overall sales, likely a result of an ever-decreasing inventory, says Austin Black II, founder of City Living Detroit, a real estate brokerage firm in Midtown. In November, inventory dropped 12.3 percent when compared to the same period in 2012.
t“The listing inventory started to shrink about 18 months ago,” Black says. “Before that, there was an excess amount of property and the average time on the market was a lot longer. Now we’re at a point where there’s a lot of demand in particular neighborhoods, but there’s a lack of properties available.”
tWhile Realcomp says the average home in metro Detroit spends 44 days on the market, Black says his company, which focuses on city properties, has experienced even shorter sales. “We’ve had listings that we put on the market and within hours, we’re already receiving offers,” he says.
tConsidering the numbers, Black says home sellers and cash buyers are in the best positions. “Because the price is increasing so quickly, sellers are having issues with appraisals not catching up quick enough. So if a seller sees someone with a mortgage offer versus a cash offer, they’re going to likely take that cash offer,” he says.
tOf the 4,034 metro Detroit residences sold in November, about 23 percent were foreclosure sales. In comparison, about 33 percent of sales in November 2012 were foreclosures.