According to the June 2022 regional housing report from RE/MAX of Southeastern Michigan in Troy, the median home sales price for a home in metro Detroit rose above $300,000 for the first time, an increase of 10.4 percent over last June to $312,725.
“There remains a significant supply of buyers that desire to buy a home and that helped to push home prices up as we entered the summer selling season. We saw a slight increase in the number of homes for sale and sellers are becoming more thoughtful about pricing their homes,” says Jeanette Schneider, president of RE/MAX of Southeastern Michigan.
This median sales price was up from $293,500 just one month before. As prices rise, however, total home sales fell from 4,366 in June 2021 to 3,767 this year, a 13.7 percent drop. This number is up slightly from May 2022, when 3,533 homes were sold. The number of pending sales is also down, dropping 9.4 percent year-over-year from 4,292 to 3,887. Pending sales are also down from May 2022’s total of 4,179.
Homes continue to sell briskly, losing 4 total days in the average time between listing and signed contract. Last June, homes spent an average of 19 days on the market compared to 15 days this year, which is also a one day decrease month over month.
Supply is on the rise, albeit slightly, increasing to a 1.7 months’ supply compared to 1.4 months’ supply year-over-year and 1.3 percent month-over-month. A supply of six months is considered a balanced market.
“Buyers are more measured in how they are searching for homes and are finding it easier to book showings and may even be able to negotiate a bit. Sellers are still in the driver’s seat, but the market is starting to shift,” says Schneider.
The counties that saw the largest median price increase were Macomb and Wayne, both jumping 13.9 percent year over year. Macomb’s median price went from $237,000 to $269,900, and Wayne’s from $180,000 to $205,000. The city of Detroit saw a larger gain, rising from $66,000 to $87,000 — 31.8 percent. Oakland County increased from $348,500 to $385,000 — 10.5 percent — and Livingston County increased from $367,950 to $391,000 — 6.3 percent.
Home sales saw the largest drop in Oakland County, falling 16.5 percent from 1,760 to 1,469 total sales. Wayne County followed close behind, dropping 15 percent from 1,686 to 1,433. Livingston County fell from 252 sales to 220 — 12.7 percent — and total sales in the city of Detroit fell 9.5 percent from 368 to 333. Macomb County saw the smallest drop of only 3.6 percent, from 668 to 645 total sales.
Homes in Livingston County sold the fastest on average, spending 14 days on the market compared to 26 last year, a 46.2 percent drop. Oakland County fell from 16 days to 13 — 18.8 percent — and Macomb County fell 6.7 percent from 15 days to 14. Wayne County saw a 15 percent increase in this statistic, going from 17 days last year to 20 this year. The city of Detroit jumped 29 percent, from 31 days to 40.
RE/MAX of Southeastern Michigan also released its year-to-date report for the first half (FH22) of 2022. The data shows total home sales have dipped 7.2 percent compared to the first half of 2021 (FH21), dropping from 20,111 to 18,865. The median sales price of $312,725 for FH22 is up 6.6 percent compared to $293,500 during FH22.
The number of days on the market dropped from 16 to 15 and the months’ supply from 1.8 to 1.3 in this time. Pending sales decreased 4.4 percent from 21,535 to 20,572.
“We anticipate the remainder of the year to see slightly more inventory coming to the market as current homeowners may decide now is a good time to cash in on the equity they have amassed on their home,” says Schneider.
“This will bring more buyers into the market along with the significant pool of buyers already out looking for a home and will keep the demand for housing strong. Home prices are expected to continue to increase as well although at a more modest rate.”
For FH22, Oakland County saw a 16.5 decrease in homes sales year-over-year, from 7,568 to 6,808. Wayne County fell 15 percent from 8,239 to 7,839, while Livingston County dropped 12.7 percent from 1,138 to 1,004. The city of Detroit gained 9.5 percent from 1,983 to 2,148, and Macomb County saw a small gain of 3.6 percent, going from 3,136 to 3,214.
The median sales price rose across the board, with the city of Detroit seeing the largest jump, from $62,000 to $78,000 — 31.8 percent. Wayne and Macomb counties rose 13.9 percent from $164,000 to $173,000 and $217,000 to $234,000. respectively. Oakland County increased 10.5 percent from $318,000 to $338,000, while Livingston County saw the least increase, jumping 6.3 percent from $337,000 to $378,000.
The number of days on the market fell from 26 to 22 in Livingston and Oakland counties. Macomb County dropped from 23 to 22 and the city of Detroit from 27 to 26. Only Wayne County increased, from 25 days to 26.