Existing home and condominium sales last month fell sharply and median sale prices continued their upward trajectory, according to a new report from Realcomp Ltd. II.
The Farmington Hills-based company reported that year-over-year sales in metro Detroit dropped 8.4 percent from 3,685 in February 2016 to 3,375 last month, while prices rose 5 percent from $138,000 to $144,900.
Winter months are generally slower for residential sales.
The four counties in the metro region — Wayne, Oakland, Macomb and Livingston — all had fewer home sales and higher prices as on-market inventory plummeted 44.3 percent year-over-year from 17,524 listings to 9,754, according to Realcomp.
The shortage of quality, move-in ready homes continues to drive quick sales. Homes spent 48 days on the market last month, compared with 54 days in February 2016, an 11.1 percent drop, according to Realcomp.
Wayne County’s numbers were the strongest in the four-county region, with the smallest drop (1.4 percent) in total sales, falling from 1,332 to 1,313 last month, and the highest increase (9.8 percent) in prices, rising from $91,000 to $99,900 last month.
Livingston County’s 19.6 percent drop in sales was the steepest in the region, falling from 204 to 164 last month, while its median sale prices increased the second-most, by 6.7 percent from $224,950 to $240,000.
Oakland County set the pace in sale price increases at 9.3 percent, rising from $185,950 to $203,250, according to Realcomp. However, the county’s sales fell 9.6 percent from 1,218 to 1,101.
Macomb County homes and condos sold for 5.4 percent more last month than February 2016, rising from $125,000 to $131,750. Yet sales fell 14.4 percent from 931 to 797 last month, according to Realcomp.
There has been an increase in new construction permits the last few years as the economy has improved and there is a shortage of available existing homes.
In January, home and condo sales fell 0.1 percent year-over-year from 2016 and median sale prices rose 6.7 percent.
By: KIRK PINHO, Crain’s Detroit Business