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.
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.

avatar

Get more local stories in your inbox with Axios Detroit.

🌱

Support local journalism by becoming a member.

Learn more

More Detroit stories

No stories could be found

Detroitpostcard

Get a free daily digest of the most important news in your backyard with Axios Detroit.

🌱

Support local journalism by becoming a member.

Learn more