The latest report from RE/MAX of Southeastern Michigan indicates that metro Detroit’s spring home-buying season may be off to a delayed start. After two consecutive months of gains in month-over-month home sales, metro Detroit home sales fell 25 percent in April from March.
RE/MAX of Southeastern Michigan attributes the April decline to low inventory and less-than-ideal weather conditions, which kept many buyers away. The report also finds that year-over-year home sales are down 30.6 percent over last year. Prices, however, remain stable and are down 0.9 percent over last year.
Additional findings from the April report show that Oakland County saw the largest decline in year-over-year home sales of 34.7 percent. The report also stated that Macomb County saw the largest increase in days-on-market (DOM), with the average home now selling in 29 days, compared to 15. The city of Detroit home prices are down 7.5 percent over last year, with the median sales price now at $74,000.
“We are seeing fairly stable home prices this spring which is beneficial to buyers,” says Jeanette Schneider, president of RE/MAX of Southeastern Michigan in Troy. “Many buyers are looking past interest rates and focused on finding a home that meets their needs and what they can afford. For those considering selling, demand for properties remains high, and most sellers can anticipate selling their homes relatively quickly.
“Despite a drop in home sales from March, home prices went up, and that is due to a lack of homes for sale. Additional inventory would be helpful, but current conditions offer opportunities for both buyers and sellers.”
Overall, the number of home sales in Livingston County went from 180 in April of 2022 to 125 a year later, a drop of 30.6 percent. There were 399 home sales in Macomb County in April of 2023, a 26.5 percent decline from the same time last year. Oakland County saw home sales go from 1,192 in April of 2022 to 778 in April of 2023, a 34.7 percent drop. Wayne County sales also went down, going from 1,428 to 1,018, which represents a 28.7 percent decline.
The median prices of homes, for the most part, saw a drop. Livingston County was the exception, with median prices going from $390,500 in April of 2022 to $405,000 a year later, a 3.7 percent increase. But Macomb County saw median home prices drop 3.2 percent, going from $,250,000 to $242,000 in a year. Oakland median home prices went down 1.8 percent.
In April of 2022, they were $346,350 and declined to $340,000 in April of 2023. Wayne County median prices dropped 5.9 percent, going from $170,050 to $160,000. Detroit median prices went from $80,000 in April of 2022 to $74,000 in April of 2023. That represents a 7.5 percent decline.
Homes are also staying on the market for longer periods of time. In Livingston County the average days-on-market (DOM) went from 18 days in April 2022 to 25 in April 2023, an increase of 38.9 percent. Macomb County DOM rise 93.3 percent, going from 15 days to 29 days. Oakland County DOM went from 14 days to 22 days, an increase of 57.1 percent. Wayne County DOM went from 23 days to 32 days, a 39.1 percent rise. City of Detroit DOM rose 20 percent, going from 40 days to 48 days.