Metro Detroit Housing Market Sizzles With Rising Home Values
Metro Detroit housing market continues to sizzle as median home prices and home sales are hitting great levels.
The Michigan comeback continues to gain momentum! Median home sale prices in Metro Detroit broke the $100,000 mark in May for the first time in four years as Real estate continued to regain value lost in the recession, according to Realcomp.
The lack of available inventory continues to drive housing prices up as folks struggle to find a home on the market that they can get an offer accepted on. Multiple bids and “cash” offers are making life difficult for the many folks in the market.
Current Statistics of Metro Detroit Housing Market from May 2013
Here are a few highlights of the May 2013 Metro Detroit housing market:
May prices in the four-county region of Wayne, Oakland, Macomb and Livingston jumped 40% year-over-year to $111,000 as the median sales price.
The inventory of available homes fell 20% in and outside of metro Detroit.
The total number of area home sales in May rose 1% from a year ago while the number of listings was down 22% year-over-year
A typical listing was on the market for 66 days
The number of sales of foreclosed homes was down 30% year-over-year
Cash sales were 42% of all May sales.
What is the future of the Metro Detroit Housing Market for the rest of 2013?
The inventory crunch will continue throughout the summer as Interest Rates continue their ascent higher. This has People scrambling to beat higher rates which lead to higher payments for possibly the next 30 years. Not a fun thought for most!
According to the MBA (Mortgage Bankers Association) on 06/19/13, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased to 4.17%, the highest rate since March 2012. This is the sixth straight weekly increase for this rate.
Meet with your Loan officer frequently to keep your Pre-Approval letter up to date. This will help you get your offer secured quickly when you find the home you are ready to make an offer on. Good luck!
For more information and the source of the image, please check out the following article from the Detroit Free Press.