As the weather warms up, so too typically does the local residential real estate market, and last month was no different.
The four-county metro Detroit region saw a 3.4 percent increase in the number of home and condominium sales last month, rising to 5,556 from 5,373 in May 2016, according to new data from Farmington Hills-based Realcomp Ltd. II.
The median sale prices also climbed 6.7 percent to $176,000, in part as the number of available homes continues to drive them up. The median price was $164,900 in May 2016.
The most nagging trend in the local market continued as the number of on-market listings plummeted 41.6 percent to 10,628 last month, down from 18,193 a year ago. That's giving sellers a quick turnaround as the average house and condo spent just 33 days on the market before being sold, down 19.5 percent from 41 days in May 2016.
However, Karen Kage, CEO of Realcomp, noted that the on-market inventory has increased from 9,755 in April, marking an 8.9 percent bump in the period.
"Not much, but we'll take it," she said. "It's encouraging in terms of making sure we have inventory to sell. That's the issue."
"I hope people are seeing that the market is strong and are willing to put their home on the market. But then the issue is, where do you go? You can't buy anything until people start putting their houses on the market."
The region's available housing shortage outpaces the national rate, according to data from the National Association of Realtors. In April, the last month for which figures were available, the available inventory of single-family homes fell 9 percent year-over-year from 2.12 million to 1.93 million.
Total home sales in the Midwest fell 7.8 percent from 115,000 to 106,000 in April 2017, while median sale prices rose from $108,400 in April 2016 to $194,500, a 7.8 percent climb.
Locally in April, median sale prices rose 9.6 percent to $169,000 from $154,250 a year earlier. Total sales dipped 3.7 percent from 4,791 to 4,615.
Kage expressed optimism for the next few months. "I think it's going to be a pretty strong summer," she said.
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