More Metro Detroit homeowners are selling at a loss
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A growing share of Metro Detroit homeowners are selling their houses at a loss, per data Redfin shared with Axios.
Driving the news: 6.9% of metro homes sold at a loss from August-October 2023 — up from 6.1% a year ago.
- The median loss was around $20,000, per Redfin.
- San Francisco was the only city in the country with a larger share of losses (13.6%).
What they're saying: Local real estate agents were somewhat surprised at the data given they are noticing a high demand for move-in-ready homes.
- "The inventory's been picked over dramatically," Randy Repicky, a Grosse Pointe realtor who manages Real Estate One's market research department, tells Axios. "Listings are either going right away or they're sitting."
Yes, but: More sellers could be taking a loss due in part to a softening condo market, Ryan Cooley, owner of O'Connor Real Estate on Michigan Avenue, tells Axios.
- Additionally, some out-of-town speculators and house-flippers are offloading property and willing to take a loss on the homes they no longer intend to fix up and sell.
Zoom in: A condo in Midtown was recently listed for $385,000 — about $5,000 less than what the seller paid a couple of years ago, Cooley says.
The big picture: Losing money on your home sale is becoming more common across the U.S., Axios' Brianna Crane reports.
- More than 3% of U.S. homes sold at a loss in August-October 2023 — up from 2.4% a year ago.
- The median loss was around $40,000, per Redfin data.
The other side: Some markets have been even stronger for sellers this year. The share of losses in Chicago, for instance, has shrunk since last year.
The bottom line: In this low-inventory market, sellers are still on top. Those who've been in their homes for a long time can make a profit, per Redfin.