Each month the National Association of Realtors (NAR) provides an Existing-Home Sales report, which is a detailed look at the state of the housing market across the United States. While the Existing-Home Sales report is closely watched by economists and the media, its broad overview is rarely a help to buyers and sellers here in Michigan. That’s where Coldwell Banker Weir Manuel (CBWM) can help by comparing and contrasting what NAR report says with our CBWM Real Estate Update, which is a monthly analysis of local data provided by Realcomp (MLS).
Let’s start with the national numbers.
Home sales are down nationally 3% to 5.43 million homes sold largely because of inventory – the available supply of homes – has dipped dramatically by 6.1% (1.85 million). Additionally, this number has dropped each month for the last three years. This tight supply not only creates an in increase in demand but also causes home prices to rise. That said, home prices nationally rose 4.9% from a year ago to a median price of $264,800. Homes are also selling very, very quickly! The median time it took for a home to be sold in May was an incredible low of just 26 days nationwide. Similarly, the Midwest saw existing-home sales decline 2.3 % in May, while the region’s median price was $209,900, up 4.2 % from a year ago.
But we can go even deeper by using this month’s CBWM Real Estate Update.
For example, let’s look at Birmingham, which remains one of the more desirable communities throughout Michigan because of its proximity to Detroit, noted schools and popular downtown shopping and dining destinations. Currently, Birmingham has a tight supply of homes (5.1 months), which accounted for 12.5% fewer sales from this past year. Furthermore, prices grew by 9.1% to a median sales price of $635,000. As a result of these price increases, homes are staying on the market an average of 46 days, which about three weeks longer than the national median number.
Moving to Ionia, which is more on the west-side of our state; we are seeing homes in the $75,000 to $125,000 price range selling the fastest today. The median sales price for a home in Ionia is $112,000, which is considerably lower than that of the national average, however, home values have gone up 25.1% over the past year even as inventory increased by 22.6%. Additionally, homes are staying on the market an average of 62 days — more than double the national average. We are noticing that many of the sellers in this area are looking to downsize and prefer ranch style homes, especially among the Baby Boomer generation.
If you are curious about what is happening around Southeastern Michigan and want to get as local as possible, take a look at our CBWM Real Estate Update.
And, if you are looking to buy or sell a home, of course, visit cbwm.com