There’s good news for sellers all around the Detroit area!
According to the latest data released by Realcomp Ltd. II, a Farmington Hills-based multiple listing service, the average price of homes in the city have skyrocketed by an overwhelming 50% when comparing year to year pricing. Pricing isn’t the only market factor showing an increase—the number of sales has also increased, jumping 14.1% since last year. Even better news for sellers in the Detroit area is that the Motor City shows a serious decline in its inventory levels, with a 27.7% drop in August. In August of 2016, there were 29,239 homes available on the market, whereas this year showed only 21,240 listed for sale.
Detroit is definitely a sellers-market.
“The number of homes available continues to be seriously low,” said Frank Tarala, president of Realcomp’s board of governors. Homes in the city have currently increased to a median price of $36,000, while homes in the Metro area have reached a height of $176,000—an increase of 3.8% to last year. The Metro area’s total sales also increased, with 3.7% jump to last year. As a state, Michigan is also on the rise, showing a 6.2% bump in median housing prices. Currently, Michigan’s average housing price is holding steady at $169,900.
The quantity of single-family home sales has also increased across the state, reaching 8,676 closings in August—an increase of 1.4% to the same period last year. One area that has decreased, however, is length of time on the market, which is actually in the seller’s favor. Currently, the average length of time a listing spends on the market is 33 days. Even with the upcoming slow season, which for the Detroit real estate market is usually Fall, Realcomp Ltd. II is expecting the aggressive housing competition to remain on its current course.