More Metro Detroit homes selling at a loss
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More than 6% of Metro Detroit home listings were at risk of selling at a loss in May, Redfin estimates.
The big picture: A small but growing share of sellers nationwide could potentially sell their homes for less than they paid for them.
Zoom in: Metro Detroit's share of sellers who faced that prospect in May was higher than the national average of 5.7%.
- The nationwide average was up from around 4% a year earlier, though still historically low, per Redfin.
Between the lines: Homes purchased post-pandemic (after July 2022), as prices soared to new highs, are more likely to sell at a loss than those bought during or before.
With prices now softening, "sellers are in a position where they may need to choose between accepting a lower price, or taking the home off the market," Redfin senior economist Asad Khan said in the report.
Reality check: There's a difference between taking a loss and being "underwater," or owing more money to your lender than the house is worth.
- Nearly all sellers have enough equity in their homes to sell them for more than they owe, per Redfin.