The median sales price of metro Detroit homes in March saw its biggest increase this year, while there is still less than a one-month supply, according to RE/MAX of Southeastern Michigan’s latest report.
The median sales price was $254,750 in March, a 16.1 percent increase from $236,438 in February and $219,500 in the previous year. The national median sales price jumped 14.3 percent to $303,000.
Home sales increased 3.4 percent to 3,584 homes, up from 2,785 in February 2021 and 3,467 in March 2020. Nationally, home sales grew 15 percent year-over-year.
“It has been a full year since the COVID-19 shut down that put a pause on real estate activity,” says Jeanette Schneider, vice president of RE/MAX of Southeastern Michigan in Troy. “Since then, demand has soared, interest rates have gone down, and competition is strong among buyers.
“Many potential sellers remain on the sidelines, leading to an inventory shortage that offers 50 percent fewer homes to choose from than a year ago and is the reason there is less than a one-month supply of inventory. With buyers having to act aggressively to get the home they want and sellers reviewing multiple offers, both sides benefit from having an experienced agent help them navigate this market.”
Homes spent an average 30 days on the market, down 19 from March 2020 and down five from February 2021. Homes spent an average 38 days on the market across the country, down 16 days from the previous year.
There was a 0.9 months supply of homes, the same month-over-month and down from 2.2 months year-over-year. Nationally, there is a 1.1 months supply. A supply of six months is considered balanced.
Pending sales increased 44.2 percent to 4,394, an increase from 3,385 the month before and 3,048 the year before.
Home sales dropped in Livingston and Oakland counties by 8.2 percent to 191 homes and 4 percent to 1,164 homes, respectively. Macomb and Wayne counties saw respective increases of 9.9 percent to 834 and 8.4 percent to 1,395. Detroit saw a 12.9 percent increase to 351 homes sold.
The median price increased the most in Detroit, which saw a jump of 48.1 percent to $60,000, up from $40,500 the previous year. Prices jumped in Livingston County by 18.9 percent and in Wayne County by 16.4 percent to $339,000 and $160,000, respectively. In Macomb County, the median price increased 15.2 percent to $208,000, while the median price increased 13.5 percent to $312,000 in Oakland County.
Homes remained on the market the longest in Detroit — 53 days — a 14.5 percent drop from the previous year. This was followed by Wayne County, where homes spent 33 days on the market, a 29.8 percent decrease. Homes spent 31 days on the market in Oakland County, a 32.6 percent decrease, 29 days on the market in Livingston County, a 37 percent decrease, and 25 days on the market in Macomb County, a 43.2 percent decrease.