Jul 18, 2022 - News

Detroit's real estate market isn't cooling just yet

Illustration of a white picket fence shaped like arrows trending upwards

Illustration: Sarah Grillo/Axios

Metro Detroit's real estate market is holding steady for now.

Why it matters: We keep hearing about a market crash, but so far, local data doesn't support that claim. Pending home sales are up 4.6% and median home sale prices are up 6.25% from May 2021 to May 2022, while new listings are up 7.4%.

Zoom in: While data shows the market holding steady, real estate agents on the ground say buyers are negotiating with a little more leverage, per the Free Press.

  • Bidding wars still happen, but some buyers are now able to negotiate a sales price slightly under the listing.
  • "A year ago, you were negotiating up, not down," agent Abe Taleb of RE/MAX Leading Edge in Dearborn Heights told the paper.
<b style='color: #8a0098'>New listings</b> and <b style='color: #00ab58'>pending sales</b> of Detroit-area homes
Data: Redfin; Chart: Kavya Beheraj/Axios

Zoom out: Nationally, mortgage applications were down 24% in the same time period. On average, 6.5% of sellers dropped their asking price each week in June, per Redfin’s latest market update.

  • In June, national pending home sales were down 13% from this time last year, the largest decline since May 2020, Redfin's report stated.

What we're watching: New listings and pending sales. If more listings flood the market this summer and buyers don't bite, that's when we would start to see more power shift into buyers' hands.


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