According to the May 2022 regional housing report from RE/MAX of Southeastern Michigan in Troy, housing supplies increased for the first time in months and homes in the metro Detroit area continue selling at a quick pace and at higher prices.
Home sale totals in May fell overall, dropping 6.8 percent year-over-year from 3,792 to 3,533, but rising from 3,201 in April 2022. At the same time, the median sales price climbed both year-over-year and month-over-month, rising 6.4 percent to $293,500 in May from $275,788 posted a year ago. April’s median sales price was $288,500.
“We are still seeing a strong housing market, with relatively quick sales amid continued strong demand from buyers,” says Jeanette Schneider, president of RE/MAX of Southeastern Michigan. “There is a slight shift occurring in the market with some buyers stepping back due to the rising interest rates leading to fewer multiple offers on homes, but this is welcome news to buyers who have been bidding in a super competitive market for a couple of years.”
Home spent the same average number of days on the market year-over-year at 16 but dropped three days from 19 month-over-month. Housing supply has sat at 1.1 months for some time — a 6-month’s supply is considered balanced — but increased to 1.3 in May 2022. The number of pending sales was down 1.4 percent from 4,239 to 4,179 year-over-year but increased from 3,809 month-over-month.
“While we saw an increase in the number of homes for sale this May compared to last year, both existing homes and new construction homes are in limited supply, so we expect the market to stay active during the summer buying and selling season,” says Schneider.
Year-over-year trends broken down by area show that the city of Detroit saw the greatest increase of home sales, jumping 13.5 percent from 342 to 388; followed by Macomb County, which saw an increase of 8.2 percent from 546 to 591. Wayne County saw a decrease in home sales of 5.2 percent, from 1,512 to 1,413. Oakland County’s decrease was from 1,504 to 1,318, or 12.4 percent followed by Livingston County, which dropped 16.9 percent from 230 to 191 sales.
Detroit also so the greatest increase in median price, jumping 18.1 percent from $65,000 to $76,752. Livingston County’s median price jumped from $350,600 to $393,000, or 12.1 percent. Macomb County increased from $230,050 to $240,000 — 4.3 percent — and Oakland County went up 4.1 percent from $345,500 to $360,000. Wayne County saw the smallest jump, from $175,000 to $181,000, or 3.4 percent.
The average number of days houses spent on the market saw the sharpest drop in Livingston County, going from 17 to 14. Detroit dropped from 40 days to 37 and Wayne County dropped from 21 days to 20. Oakland County remained stagnant at 14 days, while Macomb County saw the only increase in this category, from 13 days to 15.