Metro Detroit Real Estate Market Update

Hey guys, this is Jim Shaffer, your favorite real estate agent coming to you with three very important numbers. I want to make sure everybody that I know hears these three numbers.

The first, and perhaps the most important, is a negative number, -41.9% drop in inventory in the entire multiple listing service in Southeast Michigan. That means nearly half of the inventory that we had last September is gone from the market.

And what that means for you, if you own a home currently, you have the opportunity to capitalize on a low inventory market, coupled with historically low interest rates, at and below 3%, to drive more buyers to your home. In fact, this weekend, we had eight of our listings that went live on Thursday receive multiple offers in bidding wars with highest invest deadlines today, Monday. That means every one of those sellers is going to get more for their house than they thought they could. More than they wanted. More equity going out into their next home purchase or whatever their situation.

The next number I want you to know is 19.1%. That’s the year-over-year increase in closed sales volume. And if you remember a year ago, last September, we were still having bidding wars. We were still having shortage of inventory. It’s just been compounded even more, where 20%, nearly 20% increase in closed sales volume.

And the third is probably the most important. And that number in all of the MLS is 13.4%. 13.4% is the year-over-year increase in the median sales price. That’s outstanding! That means everybody who owns a home in Southeast Michigan earned extra 13% on their money. It means they have that much more equity. And more important, in micro markets, and here’s where it’s really impactful, most of our clients live on the Woodward Corridor.

Most of our business is on the Woodward Corridor. And that number, instead of 13.4%, is closer to 18%. Meaning you have 18% more value in your home. If your home last September was worth $200,000, it’s currently worth $236,000. And it’s a great time to cash in on that equity and go out and purchase the new home, because you can get that new home at an average of 3% interest, and you can lock that 3% interest rate for the next 30 years. So I wanted to come to you today, make sure you had that information and you were armed and dangerous to make financial decisions that will impact the rest of your life.