A new report from RE/MAX of Southeastern Michigan in Troy raises the possibility that after 16 consecutive months of double-digit decreases in year-over-year home sales in metro Detroit, a 9 percent drop in October shows home buyers are adjusting to the “norm” of higher interest rates.
This is the lowest percentage drop since May 2022, when home sales fell 6.8 percent year-over-year. Other notable metrics for metro Detroit from the latest report include steady home prices, which are up 1.9 percent year-over-year.
Additionally, homes are selling four days faster than last year and are on the market for an average of 27 days, and pending home sales are up 4.6 percent year-over-year. The RE/MAX report also states that the current median home-sale price for metro Detroit is $294,750, a 1.9 percent increase over the same time in 2022.
The median price for homes in Livingston County rose 2.3 percent in October of 2023 compared to the same time in 2022, going from $370,750 to $380,000. Macomb County reported even stronger growth, with the median price of a home going from $238,450 in October 2022 to $247,000 in October 2023.
Oakland County median home prices stayed pretty much the same in October 2023 compared to the previous October, with prices going from $340,000 to $342,500 — a 0.7percent rise. Wayne County, on the other hand, saw median prices rise 2.9 percent from October 2022 compared to Octobe 2023, going from $175,000 to $180,000. Detroit median home prices also saw a 1.6 percent increase, with a median price of $81,000 in October 2023.
Homes are also selling faster. In October 2022, the average days on market (DOM) in Livingston County was 30, compared to 27 in October 2023. That’s a drop of 10 percent. Macomb County’s DOM dropped 20 percent, going from 30 to 24.
Oakland County saw a 10 percent drop with DOM going from 30 to 27 October to October. Wayne County DOM went from 32 in October 32 to 30 in October 2023, a 6.3 decline. Detroit saw DOM drop slighting, going from 46 to 44, a 4.3 drop.
“We saw some normal seasonality in the market with a small slowing of home sales from September to October along with a small increase of inventory,” says.” Jeanette Schneider, president of RE/MAX of Southeastern Michigan. “While higher interest rates have deterred some buyers, there are many motivated buyers still in the market who are looking to find a home now while there is less competition.”
