Metro Detroit house prices still on the decline
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Home sale prices in metro Detroit are continuing their downward trajectory from the second half of last year into 2023.
Why it matters: Any relief from sky-high home prices is welcome, especially as mortgage rates creep up, Axios' Brianna Crane reports.
By the numbers: Our region's median home sales price was $150,500 in January, down nearly 8% from last year and 7% from December, according to an analysis of Redfin data.
- Inventory was up 36% from last year.
- Homes sat on the market for a median 37 days in January, 14 days longer than they did last year.
Between the lines: Metro Detroit's median price is just over half that of the Columbus region's $279,900 and just under Cleveland's $173,500.
- It's a far cry from the Chicago metro area's $285,000 and Minneapolis's $340,000.
Zoom out: Nationally, median home sales prices have crept up 1.3% from one year ago.
- The national median home sales price in January was $383,000.
- Sales fell for the 12th month in a row, according to the National Association of Realtors.
- As demand falls, homes sit on the market a little longer, which gives buyers a little more room to negotiate.
Zoom in: Even with home prices falling in the Metro overall, the market is still hot in some cities, with stable pricing and houses selling over asking price, Crain's reports.
- At entry-level prices, "hot markets" include St. Clair Shores, Westland and Ypsilanti Township.
- Midrange markets to watch include Canton Township, Wixom and Sterling Heights.
- High range areas are Novi and Ann Arbor, according to Crain's.
What's next: Spring, typically marked by high demand, more competition and higher home prices, is right around the corner.
- If spring 2023 follows typical trends, we should expect home prices to rise again in the near future.
Yes, but: Experts predict 2023 will see a far less frantic housing market than in 2022.