Michigan Housing Market - March 2023

Monthly REALCOMP MLS® Market Update

March 2023

Nationally, existing home sales jumped 14.5% month-over-month as of last
measure, the first monthly gain in 12 months, and representing the largest monthly increase since July 2020, according to the National Association of
REALTORS® (NAR). The sudden uptick in sales activity stems from contracts
signed toward the beginning of the year, when mortgage rates dipped to the
low 6% range, causing a surge in homebuyer activity. Pending sales have
continued to improve heading into spring , increasing for the third consecutive
month, according to NAR.

Closed Sales decreased 8.5 percent for Residential homes and 11.9 percent
for Condo homes. Pending Sales decreased 20.6 percent for Residential
homes and 12.2 percent for Condo homes. Inventory increased 9.4 percent
for Residential homes and 14.0 percent for Condo homes.

The Median Sales Price increased 1.8 percent to $230,000 for Residential
homes and 4.3 percent to $240,000 for Condo homes. Days on Market
increased 37.5 percent for Residential homes and 48.3 percent for Condo
homes. Months Supply of Inventory increased 25.0 percent for Residential
homes and 30.8 percent for Condo homes.

Monthly sales might have been even higher if not for limited inventory
nationwide. At the current sales pace, there were just 2.6 months’ supply of
existing homes at the beginning of March, far below the 4 – 6 months’ supply
of a balanced market. Inventory remains suppressed in part because of
mortgage interest rates, which nearly hit 7% before falling again in recent
weeks. Higher rates have continued to put downward pressure on sales
prices, and for the first time in more than a decade, national home prices were
lower year-over-year, according to NAR, breaking a 131-month streak of
annual price increases.  

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Source:  REALCOMP | Current as of April 7, 2023. All data from Realcomp II Ltd. Report © 2023 ShowingTime.

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Please contact me directly if you have any real estate questions or need assistance with buying, selling or renting a home.  I'm always here to help!  Check back next month for the next market update!   - Chris Lynn

Servicing Royal Oak, Ferndale, Hazel Park, Clawson, Berkley, Troy, Bloomfield Hills and nearby areas.