In metro Detroit, home sales were down 5.8 percent in February year-over-year due to record low inventory, according to RE/MAX of Southeastern Michigan in Troy.
In February, 2,785 homes sold, down from 2,988 in January 2021 and 2,956 in February 2020. There was a 0.9 months supply of homes on the market, down from 1 month in January and 2.1 months in February 2020. Nationally, year-over-year home sales increased 5.7 percent, and there was a 1.6 months supply of inventory. A supply of six months is considered balanced.
“The historically low inventory in our market is fueling bidding wars and pushing home prices higher as buyers aggressively try to outbid their competition to get their offer accepted and the home they want,” says Jeanette Schneider, vice president of RE/MAX of Southeastern Michigan.
“Potential sellers had been staying on the sidelines throughout February, but we are starting to see some slight movement with more homes coming to market. Sellers are more likely to put their home on the market when they see more options for their next home. Low interest rates, high buyer demand, and limited inventory will be with us throughout the spring season.”
The median sales price has increased 12.4 percent from the previous year to $236,438, up from $210,295 in February 2020. This price is down from January’s $242,875. The national median sales price increased 11.9 percent from the previous year to $291,000.
Homes spent an average 35 days on the market, down from 53 days in February 2020 and up from 34 days in January 2021. Nationally, homes spent 42 days on the market, down 18 days from the previous year.
Pending sales were down 2.9 percent to 3,385, a drop from 3,486 the year before and 3,485 the month before.
Home sales decreased the most in Livingston County – 29 percent from 115 homes to 162 homes. Detroit saw the next biggest decrease, a drop of 10.4 percent to 267 homes from 298. In Wayne County, there was a decrease of 6.4 percent from 1,190 homes sold to 1,114 homes sold. Oakland County saw a decrease of 4.8 percent to 927 homes sold from 974. Macomb County saw the smallest decrease – 629 homes sold in February 2021 from 630 in February 2020.
Home prices increased 51.9 percent in Detroit to $61,500, up from $40,500. Homes were the most expensive in Livingston County at $300,000, an 8.6 percent increase from $276,278 the year before, followed by Oakland County, where the median price was $286,500, an 11.3 percent increase from $257,500. In Macomb County, home prices rose 18.2 percent from $177,900 to $209,250, and in Wayne County, the price rose 15.8 percent to $150,000 from $129,500.
Homes spent the most time on the market in Detroit – 55 days up from 54 days the year before. This was followed by Livingston County, where homes spent 41 days on the market, down from 60, and then by 34 in Oakland County, down from 52, 33 in Wayne County, down from 48, and 31 in Macomb County, also down from 52.