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