Home sales in metro Detroit dropped nearly 50 percent in April year-over-year due to the COVID-19 pandemic, according to RE/MAX of Southeastern Michigan’s April 2020 Housing Report. Nationally, home sales fell 20.2 percent.
In April, 2,110 homes were sold, a 47.7 percent decrease from 4,035 homes sold in April 2019. In March 2020, 2,936 homes were sold.
“Efforts to slow the coronavirus, which included a stay-at-home order throughout all of April, clearly impacted home sales, but we still saw activity,” says Jeanette Schneider, executive vice president of RE/MAX of Southeastern Michigan in Troy.
“Many deals already in progress were able to close during April, and buyers continued to view properties remotely. We anticipate that there is pent-up buyer demand and sellers who pulled listings off the market in March will begin putting them back on the market in May. A yet unknown dynamic is whether current homeowners – who have now lived in their home with all family members for a couple of months – may find they desire new features in a home moving forward, and this could lead to more inventory coming on the market later this year.”
The median sales price increased 8.5 percent in the area to $233,950, up from April 2019’s $215,525. In March 2020, the median sales price was $220,600. The national median sales price increased 9.3 percent from the previous year to $276,000.
Homes spent 39 days on the market, down three from April 2019. In March 2020, homes spent an average of 46 days on the market. Nationally, homes spent 46 days on the market in April, a decrease of seven days from the previous year.
There is a 2.2 months supply of homes on the market, a decrease from 2.6 months year over year. In March 2020, there was a two months supply available. A supply of six months is considered balanced. Across the U.S., there is a 3.5 months supply of homes.
Home sales decreased the most in Detroit – 56.7 percent, a decrease to 153 homes – followed by Wayne County, which saw a decrease of 50.2 percent to 772 homes sold. Macomb County saw a decrease of 48.7 percent to 496 homes, and Oakland County’s decrease was 45.4 percent to 709 homes. Livingston County saw the smallest decrease – 39.5 percent – to 133 homes sold.
The median price increased the most in Detroit to $59,450, a 45.4 percent increase year over year. Wayne County’s median price increased 27.9 percent to $159,900, and Macomb County’s increased 12.1 percent to $196,000. In Livingston County, the average home price increased 3.6 percent to $300,000, and Oakland County saw an increase of 2.6 percent to $279,900.
Homes spent 55 days on the market in Detroit, the same as the previous year. They spent 44 days on the market in Livingston County, a drop from 51 days in April 2019. In Macomb County, they spent 39 days on the market, down from 35 days the previous year. Oakland County homes spent an average 37 days on the market, while homes in Wayne County spent an average 36 days on the market, decreases from 38 and 42, respectively.