According to the July 2022 Housing Report from RE/MAX of Southeastern Michigan in Troy, metro Detroit home sales have gone down slightly month-over-month and nearly 20 percent in the last year.
This is the largest drop recorded by RE/MAX since the start of COVID-19 when home sales fell dramatically.
“We are in the process of a shift that is leading to a more measured and balanced market,” says Jeanette Schneider, president of RE/MAX of Southeastern Michigan in Troy. “Sellers need to take into account the changes occurring when pricing their home so that they aren’t too aggressive, which could turn away potential buyers at a time when the pace and number of showings is moderating.”
According to the report, home prices are up 3 percent over the last year, while the month-over-month price dropped from $312,725 to $296,200. Although the number of days from listing to a signed contract is a one day increase from last year — from 19 to 20— pending sales have gone down 12.3 percent year over year, and by more than 200 sales month-over-month.
Monthly supply, of which 6 months is considered a balanced market, is up to 2.1 over this June’s 1.7 months, and is down insignificantly from 2.2 year-over-year.
Livingston County saw the largest drop in home sales, with a 25.7 percent decrease over last year. Oakland County followed close behind with a drop of 23 percent, with Macomb and Wayne counties seeing a drop of 17.3 percent and 15.8 percent, respectively.
The median sales price only spiked significantly in the city of Detroit, jumping 38.3 percent year-over-year to $89,900. Both Macomb and Wayne counties saw an increase in median sale price of 4.1 percent ($258,750 and $195,000, respectively) and Oakland County increased only slightly more — 4.9 percent to $366,050. Livingston County’s median sales price remained unchanged at $365,000.
Homes sold the fastest in Macomb County, with the average home on the market for only 18 days, up 12.5 percent year-over-year. Livingston and Oakland counties saw no change in this metric, while the city of Detroit’s average days on the market increased 3.8 percent, while Wayne County saw a 9.5 percent increase.
Schneider adds, “Buyers are benefiting from a calmer market, and although interest rates have been more volatile, they can use ARMs, FHA, and other financing options as a solution.”