RE/MAX of Southeastern Michigan in Troy today released its June 2021 housing report, which showed metro Detroit’s housing market continues to perform strong in all facets except for the supply of homes for sale, which continues to decline.
“June saw a few more homes coming on the market which is welcome news to buyers in the market. We also noticed buyers starting to be a bit more tentative and really making sure the home is exactly what they are looking for before jumping into a multiple bid scenario,” says Jeanette Schneider, president of RE/MAX of Southeastern Michigan. “While the market is still hot, it is not the frenzy we saw in the early spring.”
Total home sales saw a 16.8 percent year-over-year change, jumping from 3,546 sales in June 2020 to 4,141 sales this June. The increase from May was also significant, increasing from 3,674 home sales.
Sellers continue to need less time to sell their home, with the average number of days on market dropping from 34 last June to 19 this June. It is a slight increase from May, which had an average of 16 days, but remains under 20 days for the second consecutive month.
Only 0.1 months of supply were added to Mays one month of supply, bringing the total to 1.1 months. A six-month supply is considered a balanced market.
The report looked at data from the Board of Realtors in Livingston, Macomb, Oakland, and Wayne counties. Macomb and the city of Detroit led the increase in home sales with a 24.8 percent increase and 20 percent increase respectively. Oakland and Wayne counties followed close behind with 19.7 percent and 14.8 percent respective increases. Only Livingston County saw a decrease, dropping 4.3 percent from last June.
The median sales price for the region continues to increase steadily, rising 21.6 percent to $282,938 from $277,225 in May.
Detroit saw a 54.7 percent increase, jumping from $44,400 last June to $68,700 this June. Livingston, Macomb, and Oakland counties all increased more than 20 percent, with Oakland’s boost being the largest, going from $280,000 to $350,000. Wayne County saw the smallest increase, moving from $155,000 to $180,000 — a 16.1 percent jump.
Macomb and Oakland counties, along with Detroit, saw at least a 50 percent drop in days on market, with Macomb seeing the highest drop, from 33 days to 15. Wayne county nearly reached a 50 percent decrease, coming at 49.7 percent, or an 18-day decrease. Livingston tail-ends this category as well, seeing a drop from 34 days to 26 days — or 24.9 percent.
“As we look forward to the second half of the year, we anticipate similar market conditions with relatively low interest rates and inventory which should keep homes moving quickly,” says Schneider.