Home sales in metro Detroit fell 6.5 percent year-over-year in November while the median sales price increased 5.4 percent, according to the most recent RE/MAX of Southeastern Michigan housing report.
In November, 3,551 homes sold, down from the previous year’s 3,796 and the previous month’s 4,441. Nationally, home sales dropped 1 percent. The median sales price was $215,250, up from November 2018’s $204,206 and down from October 2019’s $216,600. The national median sales price increased 7.9 percent to $257,000 year-over-year.
Homes spent an average 38 days on the market, up two days year-over-year and up three days month-over-month. Nationally, houses spent 49 days on the market, a two-day decrease from last year.
There was a 2.7-months supply of houses, down from November 2018’s three months and October 2019’s 3.1 months. A supply of six months is considered balanced. Nationally, a 3.3-months supply was available.
“Economic conditions remain stable for buyers and sellers, but what stood out in November was our inventory shrunk below the three-month supply level,” says Jeanette Schneider, vice president of RE/MAX of Southeastern Michigan in Troy. “Buyers find homes in short supply, while sellers benefit from prices continuing to push upward and the ability to sell their homes in a relatively quick time frame. We expect this dynamic to continue through the end of the year.”
In Detroit, 291 homes sold, a 21.8 percent drop from the previous year’s 372. Wayne County saw the next largest drop – 11.9 percent – selling 1,296 homes compared to 1,471. In Oakland County, 1,187 homes sold, down 7.6 percent from 1,284, while Livingston County saw a 3 percent decrease from 197 homes sold to 203 homes sold. Only Macomb County saw an increase in sales – 871 sold, a 3.9 percent jump from November 2018’s 838.
The median sales price in Detroit was the lowest – $45,450 – and saw the highest increase – 31.7 percent from the previous year’s $34,500. Wayne County saw the next highest increase at 11.6 percent, jumping from $125,500 to $140,000. Prices increased by 4.8 percent and 4.6 percent in Oakland and Livingston counties, respectively, to $265,500 and $275,000. Home prices increased by 3.1 percent in Macomb County to $181,000.
Homes spent 45 days on the market in Detroit, a 4.3 percent drop from November 2018’s 47 days. Livingston County saw the biggest jump, with houses on the market for 43 days, a 10.3 percent increase from 39 days. In Macomb and Oakland counties, homes spent 37 days on the market, jumps of 8.8 percent from 34 days and 2.8 percent from 36 days, respectively. In Wayne County, homes spent 36 days on the market, a 5.9 percent increase from November 2018’s 34 days.
Dan Gutfreund, principal of Dan Gutfreund Realty Group in Birmingham and a member at Signature Sotheby’s International Realty offers the following related analysis:
- The “holiday market” (Thanksgiving through Christmas) will help to close the year strong. Most buyers this time of year are looking to buy versus casually browse. December is the most popular month for buyers relocating to the state, end-of-year is bonus time for most, and buyers are using the year-end to pick up deals on homes that have been on the market for a bit.
- Inventory is down on homes priced $300,000-$1 million, and inventory is up in homes over $2 million.
- Along the Woodward corridor, days on the market averages 100-120 days for homes priced at market value. Buyers are taking their time in making the right decisions.
- Buyers that have the time to look have the strength and negotiating to their advantage.