According to the RE/MAX of Southeastern Michigan November 2021 Housing Report, metro Detroit’s housing market is heading toward a solid finish to the year, with the report showing a slight drop in home sales, but an increase in the average price.
“The robust supply of buyers in the market continues to create activity and has helped make 2021 a strong year for home sales,” says Jeanette Schneider, president of RE/MAX of Southeastern Michigan.
“The continued demand by buyers at a time of year we tend to see a seasonal slowdown, along with low-interest rates, led to an increase in home values during November. Pending sales are also up over last year, which sets up a strong finish for home sales in our market.”
Home sales dropped 3 percent month-over-month from 3,949 to 3,707. This is down even less year-over-year from 3,820. The median sales price increased 12 percent from October to $272,250. The jump is even higher from last November when the median price was $243,113.
On average, homes spent 28 days on the market, which is down from 33 last November, but up two days from October, when the average time was 26 days. Supply remains troubled, with the report showing a one and half months’ supply when a six months’ supply is considered balance. This is relatively unchanged, with the number being 1.4 in October and 1.3 last November.
The number of pending sales increased year-over-year by 4.2 percent, from 3,443 to 3,589, marking a seasonal improvement. This number significantly decreased month-over-month, however, dropping from 4,197.
County specific data from the report showed Livingston County saw the largest drop in homes sales year-over-year, from 241 to 223 (-7.5 percent). Macomb County dropped from 610 to 576 (5.6 percent) and Wayne County from 1,531 to 1,484 (-3.1 percent). Oakland County saw the smallest drop, going from 1,438 to 1,424 (-1 percent). The City of Detroit saw an increase from 317 to 347 (9.5 percent).
Data for the median price showed Detroit gaining the most ground, jumping from $60,000 to $76,000 since last November (26.7 percent). Livingston County increased from $301,000 to $355,000 (17.9 percent). Oakland and Wayne counties went up 9.4 percent each — increasing from $297,000 to $325,000 and $160,000 to $175,000 respectively. Macomb went up from $214,450 to $234,000 (9.1 percent).
Macomb County was the only county to see an increase in days on market, gaining a day from 26 to 27 year-over-year (2.9 percent). Wayne County dropped from 32 days to 28 (14.4 percent) while Oakland dropped from 32 to 27 (15.9 percent). Detroit homes spend the most time on market but still dropped from 50 to 41 (19.1 percent). Livingston County saw the largest drop, going from 41 to 31 (24.2 percent).
National trends show effectively unchanged homes sales (-0.1 percent), a similar increase in sales price (11.9 percent), and similar drop in days spent on market, shaving eight off year-over-year. The inventory problem is not only local, with the national months’ supply totaling 1.2.