By: Mark S. Lee, Guest Columnist
If you’re buying or selling a home in Metro Detroit right now, the housing market may feel a little different.
Homes are taking longer to sell. Buyers have more choices. Mortgage rates remain a challenge. But calling the market a collapse would be wrong.
The latest July numbers point instead to a housing market that is cooling, becoming more selective, and moving toward greater balance.
Metro Detroit home sales declined 1.6% from a year ago, from 4,654 to 4,578. But the median sales price increased 4.8%, from $332,500 to $348,625. Homes also spent an average of 25 days on the market, compared with 21 days a year ago.
That combination tells an important story: sales are softer, but home values remain resilient.
Jeanette Schneider, president of RE/MAX of Southeastern Michigan, describes the market as increasingly “two-speed.”
“Well-priced, move-in-ready homes in desirable locations are one speed — selling quickly and often attracting multiple offers,” Schneider says. “Homes that are overpriced, need significant work or don’t meet buyer expectations are another speed.”
That distinction may be the most important takeaway for both buyers and sellers.
Buyers Have More Breathing Room
For buyers, the market provides something that has been in short supply for years: time.
The region had 2.7 months of housing supply in July, up from 2.6 months a year earlier. That’s still below the roughly six months generally considered a balanced market, but it represents somewhat more choice for buyers.
Schneider says buyers have gained negotiating power, particularly with homes that have been sitting on the market.
“There may be opportunities to negotiate on price, repairs or closing costs,” she says.
But buyers shouldn’t assume every house is a bargain.
“Don’t mistake more inventory for less competition,” Schneider says. “The right homes are still highly competitive.”
That’s particularly important because mortgage rates remain one of the biggest obstacles to affordability. Even a relatively small change in rates can significantly affect a buyer’s monthly payment.
Sellers still have leverage – if they get the price right. Sellers shouldn’t panic, either.
Prices are still rising across much of the region. Macomb County’s median sales price increased 5.4% year over year to $295,500. Oakland County’s rose 4.4% to $401,750, while Wayne County’s increased 2.3% to $230,000. Detroit’s median price rose 4.8%, to $110,000.
But sellers are being asked to exercise more patience.
Detroit homes averaged 53 days on the market in July, compared with 44 days a year earlier – a 20.5% increase.
Schneider’s advice is straightforward: pricing and preparation matter.
“The days of putting almost any home on the market at the high-end of the potential price range and expecting multiple offers are behind us,” she says.
What comes next?
Schneider expects Metro Detroit to remain a “relatively balanced, but very property-specific market” over the next six to 12 months, with more choices for buyers, modest price movement and continued demand for homes that represent good value.
That’s a reasonable outlook given the current numbers. Pending sales were actually up 0.8% from a year ago in July, suggesting demand hasn’t disappeared.
And that may be the biggest misconception about today’s market.
People still want and need to buy homes. They’re simply becoming more selective.
For investors, Schneider says Metro Detroit – particularly Detroit – continues to offer opportunities because of its relative affordability, but local knowledge is critical. Neighborhood, property condition, rehabilitation costs, rents, and long-term demand all matter.
She also points to Michigan’s new restrictions on large institutional investors purchasing additional single-family homes as something worth watching, particularly for first-time buyers competing for more affordable properties.
The bottom line?
Metro Detroit’s housing market isn’t tumbling. It’s resetting. Buyers have more breathing room. Sellers still have leverage when they offer the right home at the right price. And after several years of extraordinary housing-market conditions, both sides are being reminded of something important:
In today’s market, strategy matters more than speed.
We invite readers, business owners, and future entrepreneurs to follow along, ask questions, and engage. If you have story ideas or questions, you can email Lee at mark@leegroupinnovation.com or visit leegroupinnovation.com.