Continued Low Inventory Means Sellers Are Getting More For Their Home

The real estate market has pretty much remained the same since the last quarter of 2017.  In most areas it is still a seller's market.  

The number of homes for sale continued to drop and prices

climbed back to pre-recession levels. 2018 looks to be another strong seller’s market as prices continue to increase as they have, month-over-month, since early 2012.

In December, the number of new listings in the county fell by nearly 600 homes compared to November, according to Realcomp. There were 1,510 new listings in November while December dropped to 941 homes.

Median prices and inventory decreased compared to November. Homes sold during December averaged $248,950, up from $238,450. Inventory dropped 400 homes from November.

2017 was an extremely good year for all metro Detroit residential property values. As we continue to have a low supply of homes on the market, values continue to rise. Many areas are now back to their pre great recession levels.

2018 could very well remain a strong seller’s market as inventory drops, selling prices increase and interest rates remain low.

The story in 2017 continued to be sale prices and inventory. Sale prices were up 9.4 percent over 2016 and 38.9 percent over the last four years. The one downfall with home values increasing rapidly with inventory so low, it’s been harder to appraise homes.

This challenge is due to the fact that because of the lack of inventory, buyers are willing to pay more in competitive situations.

The problem comes when a buyer is willing to pay more for your home but you can’t sell it for more because there are no other homes to compare it to.

December 2017

• New Listings: 941 (- 11.7 percent from 2016)

• Pending Sales: 881 (- 1.8 percent from 2016)

• Closed sales: 1,252 (- 6.4 percent from 2016)

• Days on Market Until Sale: 38 (- 5 percent from 2016)

• Median Sales Price: $248,950 (+ 12.8 percent from 2016)

• Average Sales Price: $288,937 (+ 6.6 percent from 2016)

• Percent of list price received: 97.9 percent (+ 0.9 percent from 2016)

• Inventory of Homes for Sale: 3,103 (- 29 percent from 2016)

• Months Supply of Inventory: 2.1 (-30 percent from 2016)


December 2016

• New Listings: 1,066

• Pending Sales: 897

• Closed sales: 1,337

• Days on Market Until Sale: 40

• Median Sales Price: $220,750

• Average Sales Price: $271,079

• Percent of list price received: 97 percent

• Inventory of Homes for Sale: 4,372

• Months Supply of Inventory: 3

OAKLAND COUNTY DECEMBER HOUSING MARKET: http://gmaronline.com/documents/stats/17.12_Oakland.pdf

OAKLAND COUNTY NOVEMBER HOUSING MARKET: http://gmaronline.com/documents/stats/17.11_Oakland.pdf

SOUTHEAST MICHIGAN HOUSING MARKET 2017 SUMMARY: http://gmaronline.com/documents/stats/18_YearEnd.pdf

Ronald Dwyer is a licensed Realtor serving: Troy, Rochester, Rochester Hills, Birmingham, Bloomfield Hills, Bloomfield Township, Sterling Heights, Shelby Township, Livonia, Novi, Livonia, Canton, Plymouth, Dearborn, Dearborn Heights, Redford and all Southeastern Michigan