RE/MAX of Southeastern Michigan in Troy released its October 2021 Housing Report, which shows rising prices and a low inventory have caused a drop in overall home sales, both month-over-month and year-over-year.
Last October, 4,605 homes were sold, while this year, 3,949 residences were sold, marking a 14.2 percent drop. This September, 4,182 homes were sold, marking a drop greater than 6 percent.
“The market seems to be moving past multiple offers and bidding wars on most properties. Sellers remain in a favorable position and are still able to sell quickly as strong buyer demand continues to push home prices higher,” says Jeanette Schneider, president of RE/MAX of Southeastern Michigan.
“Buyers are enjoying low interest rates along with slightly less heated competition compared to earlier in the year. Buyers may also find home prices to be a bit more stable over the next few months.”
Last month’s median sales price did see a small drop since September — from $275,138 to $268,750 — but remained up year-over-year. Since last October, the median price has climbed 8.5 percent from $247,625.
Pending sales have flatlined, up to 4,197 from 4,169 since last October and 4,163 last month, marking growth of less than one percent in both. The number of days homes spend on market decreased from 32 days last October to 26 days this year, which also represents a one day increase from last month.
Broken down year-over-year by area studied, Livingston County and the city of Detroit saw drops in homes sales from 289 to 220 (23.9 percent) and 388 to 305 (21.4 percent) respectively. Oakland County dropped from 1,753 to 1,471 (16.1 percent) and Wayne from 1,865 to 1,609 (13.7 percent). Macomb avoided a drop of 10 percent or greater, going from 698 to 649 (7 percent).
The median price jumped from $55,000 to $72,000 (30.9 percent) in Detroit, an outlier. Wayne, Macomb, and Livingston all saw comparable price jumps — from $159,000 to $175,000 (10.1 percent), $210,000 to $230,000 (9.5 percent), and $314,500 to $345,000 (9.7 percent) respectively. Oakland saw the smallest jump, going from $307,000 to $325,000 (5.9 percent).
The average days spent on market were the highest in Detroit, dropping from 57 to 44 year over year (22.9 percent). Oakland and Wayne counties were second, each averaging 27 days and dropping from 29 and 32 respectively. Livingston was third, with homes averaging 25 days, down from 34. Homes in Macomb County spent the shortest time, coming in at 24 days, down from 32 (24.7 percent).