National Real Estate Commentary
National sales of existing homes recently fell to a 7-month low, as surging borrowing costs, rising sales prices, and limited inventory continue to keep many would-be buyers out of the market. Borrowers have become increasingly sensitive to fluctuations in mortgage rates, which have remained above 7% since mid-August. With fewer buyers able to afford the costs of homeownership, existing-home sales declined 0.7% month-over-month and were down 15.3% year-over-year, according to the National Association of REALTORS® (NAR)
Prices have continued to increase this fall despite softening home sales nationwide, as a lack of inventory has kept the market competitive for prospective buyers, sparking bidding wars and causing homes to sell for above asking price in some areas. Heading into September there were only 1.1 million units available for sale, 0.9% fewer than a month ago and 14.1% fewer than the same period last year, according to NAR. As a result, the U.S. median existing-home sales price rose 3.9% year-over-year to $407,100, marking the third consecutive month that the median sales price topped $400,000.
September-Local Activity
Closed Sales decreased 17.8 percent for Residential homes and 15.1 percent for Condo homes. Pending Sales decreased 9.1 percent for Residential homes and 12.5 percent for Condo homes. Inventory decreased 14.4 percent for Residential homes and 8.6 percent for Condo homes.
The Median Sales Price increased 5.2 percent to $255,000 for Residential homes and 11.3 percent to $260,000 for Condo homes. Days on Market increased 3.7 percent for Residential homes and 25.0 percent for Condo homes. Month’s Supply of Inventory remained flat for Residential homes but increased 5.0 percent for Condo homes.
“As we end the 3rd quarter of the year, median sales prices remain high amid historically low inventory levels,” said Karen Kage, CEO, Realcomp II Ltd. “Marketplace competition continues to bring good news to home sellers.”
September Y-O-Y Comparison -- Residential & Condos Combined -- All MLS
- New Listings decreased by 7.9% from 13,177 to 12,133.
- Pending Sales decreased by 9.6% from 9,639 to 8,718.
- Closed Sales decreased by 17.5% from 11,213 to 9,255.
- Average days on Market (DOM) increased by 2 days from 27 to 29.
- Median Sale Price increased by 6.3% from $240,000 to $255,000.
- Percent of last list price received increased slightly by .6% from 99.1% to 99.7%.
- Inventory of Homes for Sale decreased by 13.8% from 22,695 to 19,572.
- Months-Supply of Inventory stayed the same at 2.2.
- Average Showings per Home stayed about the same at 7.4.
- Listings that were both listed and pended in the same month were at 3,861. This represents 31.8% of the new listings for the month and 44.3% of the pended listings.
September 5-Year Perspectives -- Residential & Condos Combined -- All MLS
September 5-Year Perspectives -- Residential & Condos Combined – City of Detroit Numbers
September 5-Year Perspectives -- Residential & Condos Combined -- Livingston County
September 5-Year Perspectives -- Residential & Condos Combined -- Macomb County Numbers
September 5-Year Perspectives -- Residential & Condos Combined -- Oakland County Numbers
September 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
