Report: Metro Detroit’s Home Sale Drought Doesn’t Let Up in November

Home sales in metro Detroit continued a downward trend in November, falling from 3,841 homes sold in November 2021 to 2,543, a 33.8 percent drop, according to the according to the latest regional housing report from RE/MAX of Southeastern Michigan in Troy.
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Home For Sale Real Estate Sign and Beautiful New House.
Rising interest rates and other economic pressures continue to suppress home sales in metro Detroit. // Stock Photo

Home sales in metro Detroit continued a downward trend in November, falling from 3,841 homes sold in November 2021 to 2,543, a 33.8 percent drop, according to the according to the latest regional housing report from RE/MAX of Southeastern Michigan in Troy.

“The interest rate increases have impacted the housing market as intended causing a reset and softening in many markets. The drop in home sales is a combination of the market cooling along with seasonality returning to the market,” says Jeanette Schneider, president of RE/MAX of Southeastern Michigan.

“This has given buyers more favorable conditions than they had for the past few years, and buyers are taking advantage of the opportunity to negotiate and ask for concessions. While interest rates are likely to be volatile in the coming weeks, many buyers are focused more on whether they can afford the monthly mortgage payment than the interest rate.”

Although less severe, the hit home sales took month-over-month topped 400, falling from 2,973 in October 2022. The median sales price remained effectively unchanged year-over-year, falling from $271,875 to $271,685. This is, however, a steep drop month-over-month, down from $281,050.

Homes are taking slightly longer to sell on average, adding five days to the time spent on the market year-over-year, moving from 29 to 34. This is a 3-day increase month-over-month. The supply rebound was stagnant, but did not decrease month-over-month, from 2.5-months. This is a full-month increase year-over-year. A six-months supply is considered a balanced market.

Pending sales also took a large hit both month-over-month and year-over-year, falling from 3,457 in November 2021 to 2,518 this year. It also fell more than 500 pending sales from this October, falling from 3,034.

Broken down to county-specific data, Livingston, Oakland, and Macomb counties all saw year-over-year home sales drops of at least 30 percent. Respectively, sales fell 44.2 percent from 231 to 129, 37.9 percent from 1,461 to 907, and 30 percent from 602 to 422. Wayne County nearly reached that mark, falling 29.9 percent from 1,547 to 1,085. The city of Detroit fell 23 percent from 374 homes sold to 288.

Price data shows Wayne, Livingston, and Macomb counties saw price drops. Wayne’s 4 percent drop from $175,000 to $168,000 led the way, followed by a drop of 1.4 from $355,000 to $350,000 in Livingston, and a 0.2 percent drop from $232,500 to $230,000. The median price in Oakland County rose 3 percent from $325,000 to $334,900, while the city of Detroit spiked 3.9 percent from $76,000 to $79,950.

The time homes spent on the market on average remained the same in Livingston County at 33. Oakland County jumped 17.9 percent from 28 to 32 while the city of Detroit rose an even 20 percent, from 40 days to 48. Wayne County jump 29.6 percent from 27 to 35 days, and Macomb County moved from 27 to 36, or 33.4 percent.