National Real Estate Commentary
Higher mortgage rates, along with elevated sales prices and a lack of housing inventory, have continued to impact market activity during the summer homebuying season. The average 30-year fixed-rate mortgage has remained above 6.5% since May, recently hitting a two-decade high in August, according to Freddie Mac. As a result, existing-home sales have continued to slow nationwide, dropping 2.2% month-over-month as of last measure, with sales down 16.6% compared to the same time last year, according to the National Association of REALTORS®(NAR).
Falling home sales have done little to cool home prices, however, which have continued to sit at record high levels nationally thanks to a limited supply of homes for sale. According to NAR, there were 1.11 million homes for sale heading into August, 14.6% fewer homes than the same period last year, for a 3.3 months’ supply at the current sales pace. The shortage of homes for sale has boosted competition for available properties and is driving sales prices higher, with NAR reporting a national median existing-home price of $406,700, a 1.9% increase from a year earlier.
Closed Sales decreased 14.1 percent for Residential homes and 14.2 percent for Condo homes. Pending Sales decreased 14.8 percent for Residential homes and 10.4 percent for Condo homes. Inventory decreased 15.4 percent for Residential homes and 11.4 percent for Condo homes.
The Median Sales Price increased 6.0 percent to $265,000 for Residential homes and 8.5 percent to $255,000 for Condo homes. Days on Market increased 22.7 percent for Residential homes and 11.5 percent for Condo homes. Months Supply of Inventory were dead even with last year for both property types.
“Just as it is promising to see the City of Detroit continuing to flourish, the Metro Detroit counties experienced median sales price increases over a year ago”, said Karen Kage, CEO, Realcomp II Ltd. “Despite its quirks, the marketplace is still active and full of opportunities.”
August Y-O-Y Comparison -- Residential & Condos Combined -- All MLS
- New Listings decreased by 6.3% from 15,022 to 14,071.
- Pending Sales decreased by 14.3% from 11,620 to 9,961.
- Closed Sales decreased by 14.1% from 12,008 to 10,318.
- Average days on Market (DOM) increased by 4 days from 23 to 27.
- Median Sale Price increased by 4.4% from $250,000 to $261,000.
- Percent of last list price received decreased slightly by .4% from 99.9% to 100.3%.
- Inventory of Homes for Sale decreased by 15% from 22,409 to 19,048.
- Months-Supply of Inventory increased by 4.8% from 2.1 to 2.2.
- Average Showings per Home increased by 1.3 from 8.1 to 9.4.
- Listings that were both listed and pended in the same month were at 5,143. This represents 36.6% of the new listings for the month and 51.6% of the pended listings.
August 5-Year Perspectives -- Residential & Condos Combined -- All MLS
August 5-Year Perspectives -- Residential & Condos Combined – City of Detroit Numbers
August 5-Year Perspectives -- Residential & Condos Combined -- Livingston County
August 5-Year Perspectives -- Residential & Condos Combined -- Macomb County Numbers
August 5-Year Perspectives -- Residential & Condos Combined -- Oakland County Numbers
August 5-Year Perspectives -- Residential & Condos Combined -- Wayne County Numbers
*high points noted with an asterisk.
It’s important to note that these numbers present a high-level view of what is happening in the real estate market in the lower part of Michigan and in specific regions. Be sure to contact a REALTOR® for their expertise about local markets. Find a REALTOR® in your market at www.MoveInMichigan.com.
Realcomp Shareholder Boards & Associations of REALTORS®:
- DABOR, Andrea Kuentz, Interim CEO, 313-278-2220
- DAR, Sharon Armour, EVP, 313-962-1313
- ETAR, Laura VanHouteghen, 810-982-6889
- GPBR, Bob Taylor, CEO, 313-882-8000
- LUTAR, 810-664-0271
- LCAR, Pam Leach, EVP, 810-225-1100
- NOCBOR, Patricia Jacobs, EVP, 248-674-4080