November Just Nifty for Sellers
Median Sale Price Up Nearly 20% in City of Detroit; 6% Area Wide
November Real Estate Market Commentary:
In November, the Federal Reserve reduced its benchmark rate for the third time this year. This action was widely
anticipated by the market. Mortgage rates have remained steady this month and are still down more than 1 percent
from last year at this time. Residential new construction activity continues to rise nationally. The U.S. Commerce
Department reports that new housing permits rose 5% in October to a new 12-year high of 1.46 million units.
Closed Sales decreased 4.9 percent for Residential homes and 13.0 percent for Condo homes. Pending Sales increased
0.4 percent for Residential homes and 1.9 percent for Condo homes. Inventory decreased 5.1 percent for Residential
homes but increased 13.5 percent for Condo homes.
The Median Sales Price increased 7.3 percent to $184,000 for Residential homes and 6.5 percent to $164,000 for Condo
homes. Days on Market increased 2.4 percent for Residential homes and 3.0 percent for Condo homes. Months Supply of
Inventory decreased 6.3 percent for Residential homes but increased 16.0 percent for Condo homes.
While many economic signs are quite strong, total household debt has been rising for twenty-one consecutive quarters
and is now $1.3 trillion higher than the previous peak of $12.68 trillion in 2008. While delinquency rates remain
low across most debt types (including mortgages), higher consumer debt loads can limit future household spending
capability and increase risk if the economy slows down.
Single-Family Real Estate Points of Interest:
- Closed sales decreased by 5.9% from 7,073 to 6,656 for the month of November Y-O-Y.
- Median Sales Price increased by 5.9% from $169,900 to $180,000 for the month of November Y-O-Y.
- An average of 5.3 showings per listing were conducted in November, up .3% Y-O-Y.
- Overall, Days on Market increased by 1 day Y-O-Y from 40 to 41.
- 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 decreased by .6% Y-O-Y based on the recalculated percentage for November 2018.
November 2019 Sales Summary Report: