Michigan Housing Market - May 2023

Monthly REALCOMP MLS® Market Update

May 2023

Existing-home sales slid for the second consecutive month, falling 3.4% nationwide as of last measure, according to the National Association of REALTORS® (NAR), as higher interest rates continue to impact buyer affordability. Sales are down 23% compared to the same period a year ago, while contract signings dropped 20.3% year-over-year. With sales cooling, buyers in some parts of the country have found relief in the form of declining sales prices, which are down 1.7% year-over-year nationally, although more affordable markets continue to see price gains.

Closed Sales decreased 14.4 percent for Residential homes and 9.1 percent for Condo homes. Pending Sales decreased 14.5 percent for Residential homes but increased 0.9 percent for Condo homes. Inventory decreased 5.7 percent for Residential homes but increased 0.8 percent for Condo homes.

The Median Sales Price increased 2.4 percent to $261,000 for Residential homes and 2.0 percent to $250,000 for Condo homes. Days on Market increased 47.6 percent for Residential homes and 38.1 percent for Condo homes. Months Supply of Inventory increased 13.3 percent for Residential homes and 12.5 percent for Condo homes.

While fluctuating interest rates have pushed some buyers to the sidelines, a shortage of inventory is also to blame for lower-than-average home sales this time of year, as current homeowners, many of whom locked in mortgage rates several percentage points below today’s current rates, are delaying the decision to sell until market conditions improve. With only 2.9 months’ supply heading into May, available homes are moving fast, with the typical home spending just over three weeks on the market, according to NAR  

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Source:  REALCOMP | Current as of June 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.