August Apprehension: Home Sales Remain Steady Despite Inventory Woes
Residential Median Sale Prices Up 5.7% Across Southeast Michigan
Real Estate Market Commentary for August 2018:
Rising home prices, higher interest rates and increased building material costs have pressured housing affordability to a
ten-year low, according to the National Association of Home Builders. Keen market observers have been watching this
situation take shape for quite some time. Nationally, median household income has risen 2.6% in the last 12 months,
while home prices are up 6.0%. That kind of gap will eventually create fewer sales due to affordability concerns, which is
happening in several markets, especially in the middle to high-middle price ranges.
While some are starting to look for recessionary signs like fewer sales, dropping prices and even foreclosures, others are
taking a more cautious and research-based approached to their predictions. The fact remains that the trends do not yet
support a dramatic shift away from what has been experienced over the last several years. Housing starts are performing
admirably if not excitingly, prices are still inching upward, supply remains low and consumers are optimistic. The U.S.
economy is under scrutiny but certainly not deteriorating.
Single-Family Real Estate Quick Comparisons:
- Days on Market decreased by two (2) days overall in August, from 35 in 2017 to 33 in 2018.
- There was an average of seven (7) showings per listing across the entire MLS during August. This was down by
2.9% Y-O-Y and 5.6% M-O-M.
- 2.8% of Residential and Condo On-Market listings are flagged as “lender mediated”. These listings include
foreclosures and those marked as short sales. This percentage is down by 1.6% based on the recalculated
percentage for August 2017, which is 4.4%.The percentage of lender mediated listings is down by .3% M-O-M
(compared to July, which was 3.1%).
Five Year (5) Comparisons
Five (5) Year Comparison of Median Sales Price for August
| |
Aug.-13* |
Aug.-14* |
Aug.-15* |
Aug.-16* |
Aug.-17* |
Aug.-18 |
5-Year Diff |
| All MLS |
$125,000 |
$142,117 |
$150,000 |
$158,000 |
$168,000 |
$177,500 |
42% |
| City of Detroit |
$11,700 |
$16,500 |
$23,500 |
$24,000 |
$36,000 |
$38,500 |
229.1% |
| Genesee County |
$79,900 |
$110,556 |
$123,500 |
$125,500 |
$135,500 |
$149,000 |
86.5% |
| Lapeer County |
$119,900 |
$138,000 |
$151,250 |
$161,000 |
$178,700 |
$173,500 |
44.7% |
| Livingston County |
$190,250 |
$210,000 |
$223,000 |
$240,000 |
$249,900 |
$266,978 |
40.33% |
| Macomb County |
$117,000 |
$132,000 |
$139,000 |
$155,000 |
$160,000 |
$165,000 |
41% |
| Oakland County |
$185,000 |
$205,100 |
$209,000 |
$225,000 |
$238,250 |
$257,000 |
39% |
| St. Clair County |
$109,950 |
$123,500 |
$123,600 |
$155,000 |
$142,000 |
$160,000 |
45.5% |
| Wayne County |
$80,000 |
$106,000 |
$117,900 |
$120,000 |
$130,000 |
$138,000 |
72.5% |
| Washtenaw County |
$210,000 |
$215,000 |
$218,990 |
$234,000 |
$255,000 |
$280,000 |
33.33% |
* = Recalculated figures pulled from Realcomp’s MLS statistical database as of 9/11/2018.