The median sales price for homes in the city in August increased 50 percent year over year to $36,000 — the biggest jump in metro Detroit, according to new data released Thursday by Farmington Hills-based Realcomp Ltd. II. The number of total sales in the city increased 14.7 percent to 414.
Frank Tarala, president of Realcomp's board of governors, said the average sale price of homes in the city is rising at a far greater rate than the rest of metro Detroit because of lasting effects from the recession.
"Those prices have really accelerated to what looks disproportionately higher because that's the way they fell," Tarala said.
It remains a seller's market when it comes to metro Detroit housing, as declining inventory drives up prices. The number of homes for sale decreased 27.7 percent in August to 21,140, compared to 29,239 the same time last year.
"The number of homes available continues to be seriously low," he said.
Total sales in metro Detroit increased 3.7 percent to 6,191, while the median sales price for the area climbed 3.8 percent to $176,000.
The median sales price of all residential units in the state climbed to $169,900 in August, a 6.2 percent bump from the same time last year.
Single-family home sales increased by 1.4 percent year over year to 8,676, while the average days on market decreased by nine days to 33 days.
Even during the traditionally slower fall months, competition for available listings is expected to remain steady. The data points to a recent boost in demand for housing construction materials that could help pick up low inventory.
City of Detroit
Sales, Aug. 2016: 361
Sales, Aug. 2017: 414
Percent increase/decrease: 14.7 percent
Median sale price, Aug. 2016: $24,000
Median sale price, Aug. 2017: $36,000
Percent increase/decrease: 50 percent
Average days on market, Aug. 2016: 55
Average days on market, Aug. 2017: 47
Percent increase/decrease: -14.5 percent
On-market listings, Aug. 2016: 2,527
On-market listings, Aug. 2017: 1,613
Percent increase/decrease: -36.2 percent
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