Metro Detroit Housing Report Shows Seasonal Trends Resuming

According to the September 2021 housing report from RE/MAX of Southeastern Michigan in Troy, year-over-year homes sales are down for the third consecutive month, which indicated the market is returning to traditional seasonal trends entering the fall months.
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The September 2021 housing report from RE/MAX of Southeastern Michigan shows year-over-year homes sales are down for the third straight month. // Stock Photo

According to the September 2021 housing report from RE/MAX of Southeastern Michigan in Troy, year-over-year homes sales are down for the third consecutive month, which indicated the market is returning to traditional seasonal trends entering the fall months.

Last September, there were 4,553 home sales compared to 4,182 this September, marking an 8.1 percent drop. In August, 4,196 homes were sold, which is a comparatively smaller drop, coming in at around 1 percent.

“The fall market has a slightly more seasonal feel to it this year as compared to last year, but active buyers continue to give the market a boost,” says Jeanette Schneider, president of RE/MAX of Southeastern Michigan. “New listings are often marketed for scheduled showings or open houses over a weekend with the expectation of getting an offer or two in that short time frame.”

“This marketing tactic works for sellers who are still working from home and don’t want to be inconvenienced during the work and school week. Buyers are encouraged to quickly schedule a time to see new listings to have a chance to see if the home is right for them and to make their offer.”

The median sales price is up 11.7 percent year-over-year, jumping from $246,250 to $275,138. Although the trend is upward in the long term, since August of this year, the median sales price has fallen from $281,425.

The eager buyers mentioned by Schneider are reflected in the 7 fewer days on average a house spends on the market, dropping from 32 to 25. Again, the month-over-month trend is opposite the year-over-year, with the average days on market in August coming in at 21.

The months’ supply of houses remains unchanged from last year, coming in at 1.6, and only jumping 0.2 months from 1.4 during August. A supply of six months in considered a balanced market.

Total pending sales are down from 4,257 last September to 4,163 this September, a 2.2 percent dip. The number from August is 4,550, which is a much larger drop and reflective of the seasonal trends mentioned by Schneider.

Broken down by county, home sales were down the most in Livingston and Oakland counties and the city of Detroit — dropping 15.9 percent, 13.2 percent, and 10.4 percent respectively. Wayne and Macomb counties both saw minor drops in sales, with Wayne going from 1,740 to 1,677 — 3.6 percent — and Macomb going from 710 to 687 — 3.2 percent.

The median price was up the most in the city of Detroit, jumping 50 percent from $50,000 to $75,000 year-over-year, an outlier in the areas studied. Macomb County’s median price climbed 14.3 percent, from $210,000 to $240,000; Wayne County’s was up 13.5 percent, from $163,000 to $185,000; Livingston County’s jumped 12.9 percent, from $310,000 to $350,000; with Oakland County seeing the smallest jump of only 7.8 percent, from $302,000 to $325,500.

Only Macomb County saw a decrease in days spent on market less than 15 percent, dropping from 25 days to 22 — or 14.2 percent. Oakland and Wayne counties were the second smallest, seeing 19.7 and 23.6 percent drops respectively. Livingston County and the city of Detroit saw the biggest drop, with Livingston going from 41 to 27 days — 33.6 percent — and Detroit going from 53 days to 34 — or 37 percent.

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