Year-over-year home sales are up in metro Detroit for the first time since the COVID-19 pandemic began in March, according to RE/MAX of Southeastern Michigan’s July 2020 report.
Home sales increased 2.4 percent to 5,015 homes sold, compared to 4,896 sold in July 2019 and 3,370 homes sold in June 2020. Nationally, home sales saw an 8.7 percent year-over-year increase.
“July saw robust activity fueled by strong buyer demand and the continuation of a limited supply of homes,” says Jeanette Schneider, executive vice president of RE/MAX of Southeastern Michigan in Troy. “Due to COVID, our spring activity was pushed together with summer buyers, leading to a very active July.
“Home buyers are taking advantage of near record-low mortgage rates and are ready to make an offer when they find a home they like. Pending sales are up by almost 30 percent, and new listings are down, making it likely buyers will continue to see strong competition for the foreseeable future.”
The median sales price increased 9.1 percent to $247,438, an increase from $226,875 in July 2019 and from $234,063 in June 2020. The national median sales price was $284,819, an 8.6 percent increase from the previous year.
Homes spent an average 34 days on the market, an increase of seven days from the previous year and a decrease of five days from the previous month. Homes spent an average 44 days on the market nationally, an increase of one day from July 2019.
A 2.2 months supply of homes was available in July, compared to 3.4 months in July 2019 and 2.3 months in June 2020. Nationally, there was a 1.7 months supply of homes. A supply of six months is considered balanced.
Oakland County saw the biggest increase in home sales – 6.8 percent – selling 1,821 homes compared to July 2019’s 1,705 homes. Livingston and Macomb counties saw increases of 2 percent and 2.6 percent, respectively, to 307 homes sold from 301 and 1,146 homes sold from 1,117. In Wayne County and Detroit, home sales decreased by 1.8 percent and 18 percent, respectively, to 1,741 from 1,773 and 300 from 366.
The median price was the highest in Livingston County at $307,750, a 5.8 percent increase from $291,000 year-over-year. In Oakland County, the average home price was $300,000, up 7.5 percent from $279,000. Macomb County saw an increase of 10.3 percent, up to $215,000 from $195,000. Wayne County saw the biggest price increase – 17.2 percent – to $167,000 to $142,500. In Detroit, the median price increased 9.9 percent from $42,750 to $47,000.
Homes spent an average 70 days on the market in Detroit, a 59.1 percent increase from 44 days. In Wayne County, they spent 37 days on the market, up from 27 days, while homes spent 34 days on the market in Livingston County, up from 29 days. In Macomb and Oakland counties, homes spent 33 and 32 days on the market, respectively, up from 25 and 28 days.
