Downriver home shoppers in August faced tight inventories, rising prices and fast sales as the real estate market continued to rebound from last spring’s pandemic stay-at-home precautions.
“Low mortgage rates make buying a home affordable and buyers are looking to take advantage of this opportunity,” said Jeanette Schneider, executive vice president of Re/Max of Southeastern Michigan.
“The high level of interest by buyers — when combined with continued low supply of homes — is benefiting many sellers with multiple offers and a relatively short time frame to get a house sold.”
Downriver home sales declined 24.3% in August compared with the year-earlier month, Re/Max reported. Sales of 386 homes trailed 510 in August 2019 and lagged July’s total of 434 homes.
The median sales price of a Downriver home was $175,138 in August — a 1.3% gain over August 2019, but below July’s $182.740, according to Re/Max.
“We are in a unique period where sellers and buyers can benefit,” said Adam Oberski, owner-broker of Century 21 Curran & Oberski, which serves the Downriver region.
Oberski cited pent-up demand created when coronavirus health concerns and guidelines put the brakes to the real estate market. Sellers are backed by inventories and competition among buyers, while buyers are enjoying historically low mortgage interest rates, he said.
Added Karen Kage, chief executive officer of Realcomp, Michigan’s largest multiple listing service: “As we approach fall, homebuyer activity continues to be robust with no end in sight due to low interest rates and pent-up demand. This bodes very, very well for the marketplace and finishing 2020 strong in this year like no other.”
Price points
August median sales prices were highest in Grosse Ile, Huron Township and Woodhaven, Re/Max data showed. Grosse Ile showed a median price of $390,000 on sales of 23 homes, compared with $388,000 on 19 homes a year earlier. Huron Township reported a median price of $260,000 on 15 homes, versus $252,473 on 12 homes a year earlier. The median price on 12 homes sold in Woodhaven was $247,500, compared with $198,500 in August 2019.
Hot spots
Taylor, Lincoln Park, Wyandotte and Allen Park led Downriver communities in closed sales during August, based on Re/Max data. Taylor closed 64 sales compared with 81 in the year-earlier month. Lincoln Park reported 40 sales, versus 63 last year. Wyandotte slipped to 36 from 37 a year earlier, and Allen Park reported 37 sales compared with 47 in August 2019.
The sales pipeline
Six Downriver communities showed less than a one-month supply of homes for sale at the end of August, Re/Max reported. The data service said inventory is the total number of residential properties for sale at the end of the month divided by the number of sales contracts achieved during the month. The Downriver area reported inventory of 3.5 months in August 2019, compared with 1.7 last month.
Communities with the tightest inventory were Wyandotte and Riverview, 0.7 month’s supply; and Allen Park, Lincoln Park, Southgate and Woodhaven, 0.9 month’s supply.
“It is the lack of inventory, not a lack of buyers, that had the total sales decline in August,” Schneider said.
Swift sales
Four Downriver communities closed deals in 13 days or fewer in August, according to Re/Max. Leading in speedy sales was Woodhaven, with 12 homes sold in nine days. Others swift movers were Trenton and Flat Rock, 10 days on market each, and Riverview, 13 days. Each community improved over August 2019 when closings averaged 12 days in Woodhaven, 28 days in Trenton, 71 days in Flat Rock and 16 days in Riverview.
Focus: Allen Park
Closing prices exceeded asking prices in August in Allen Park, Realcomp said. The average sales price was 100.8% of the asking price on 47 homes sold in August, compared with 98.4% on 47 homes sold in the year-earlier month.
“Selling well and selling fast,” Oberski called it.
Re/Max said inventory of homes for sale in Allen Park was equal to 0.9 month’s supply, compared with 2.1 months a year earlier. The median sales price in August was $150,000, compared with $140,000 in August 2019, Re/Max said.
The community had 59 pending sales at the end of August, versus 39 in the year-earlier month.
Recent Comments