The median home sale price in metro Detroit jumped 7.8 percent in September to $167,700, while home sales decreased 5.6 percent compared to a year ago, Farmington Hills-based Realcomp II Ltd. reported.
The spike in the median home sale price is due in part to a substantial decrease in the number of homes on the market in September when compared to last year, down 38 percent to 14,937 listings in metro Detroit, said Karen Kage, CEO of Realcomp. In September 2014, there were about 26,000 homes on the market, and in September 2013, that number was about 22,000.
While the median price is down compared to August ($169,750) and July ($175,000), Kage said “it’s an even better time for people to put properties on the market . It’s great sellers’ market” because inventory is so low.
Low interest rates can also prompt refinancing instead of listing, contributing to lower inventory, according to ShowingTime, a market statistics service provider to the residential real estate industry. Short-term rentals can also keep homes off the market.
Kage said 300 fewer sales in September compared to last September “isn’t devastating” but she is concerned about the market driving up home sale prices.
The communities with the most sales in September are Detroit, followed by Warren, Livonia, Sterling Heights and Canton Township, respectively.
Metro Detroit homes were on the market for an average of 37 days in September, down from 38 days last year.
Kage said sales typically slow down in the last quarter of the year, but because inventory is drastically lower than in previous years, this year could be different if more owners decide to sell their homes or listings continue to decrease.
More from Realcomp’s September market analysis:
In Livingston County, sales dropped 9.2 percent to 307 sales, while the median home sale price increased 17.2 percent to $239,000.
Macomb County saw sales drop 7.6 percent to 1,334 in September, while the median price increased by 7.2 percent to $149,950.
In Oakland County, home sales dropped 7.4 percent to 1,934, while the median price rose 10.3 percent to $215,000.
Wayne County sales dropped 1.2 percent to 1,833, while the median sale price increased by 5.6 percent to $118,000.
By ADRIENNE ROBERTS, Crain’s Detroit Business
