Metro Detroit house prices still on the decline
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.
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