According to the latest housing report from RE/MAX of Southeastern Michigan in Troy, for the first time since February, the month-over-month sales price decreased in metro Detroit, down to $281,425 in August from $288,725 in July.
Along with this, August home sales — 4,196 — were up five percent over a slow July — 3,991 — while spending an average of 21 days on the market, up one day month-over-month, but down 10 days year-over-year.
“While we saw more sales activity in August compared to July, seasonality returned to the market in August with overall activity down over last year as many families and potential home buyers took time for summer activities and last vacations before school started,” says Jeanette Schneider, president of RE/MAX of Southeastern Michigan.
“This dynamic, along with the shortage of homes for sale, led to the decrease in home sales compared to last year. Buyers aren’t as quick to put in an offer, and sellers are finding their home may be on the market for a few weeks before they get an offer. This is still a market that favors sellers, but it isn’t the frenzy we saw in early spring.”
Despite the starts of positive trends in median sales price and month-over-month home sales, the former is up 13.2 percent from last August, when the median price was $248,725, while August home sales are down 10.3 percent from 4,679 sales year-over-year.
The months’ supply — which is considered balanced at six months — has stagnated at 1.4 both from July and from last August. Pending home sales — 4,550 — are down 5.8 percent from last August — 4,828 — but up from July— 4,328.
County-specific data shows Livingston County dropped 20.8 percent year-over-year from 307 to 243. Oakland County saw the second largest drop, from 1,803 to 1,588 — 11.9 percent— and Wayne County, with a 9.5 percent drop — 1,870 to 1,692 — saw the third largest drop. The City of Detroit dropped 4.1 percent from 365 to 360, and Macomb County dropped only 3.7 percent, from 699 to 673.
Despite the median sales price dropping from July, year-over-year prices are up over 10 percent across the board. Detroit is an outlier here, jumping from $48,000 to $69,500 — or 44.8 percent. Macomb County is a distant second, increasing 17.6 percent from $205,000 to $241,000. Livingston and Wayne counties both increased 12.5 percent from $319,000 to $360,000, and $160,000 to $180,000 respectively. Oakland’s price jump was the smallest, from $310,000 to $344,700 — or 11.2 percent.
The days spend on market is down more than 20 percent across the board. Macomb saw the smallest drop, from 22 days to 28 — 20.6 percent. Oakland dropped 28.8 percent, from 30 days to 22. Livingston and Wayne counties are similar again here, with Livingston dropping from 34 days to 21 — 37.8 percent — and Wayne dropping from 31 days to 20 — 34.6 percent. Detroit rounds it out with a 51.8 percent drop from 59 days to 28.
In general, the region is on track with national trends. The national median sales price is also up 13.2 percent year-over-year, the days spent on the market down 18 days from last year to 24, and the months’ of supply is sitting at 1.3 months. Total home sales is the only trend with a discrepancy, with the national trend stagnating with 0.6 percent growth year-over-year, with southeast Michigan’s dropping 10.3 percent.