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Is The Detroit Housing Boom Over?
11-22-2018, 10:49 PM,
Is The Detroit Housing Boom Over?
Is The Detroit Housing Boom Over?

<p>A newly published September sales report via the <a href="">Detroit Free Press</a> indicates that residential real estate sales in metro Detroit could be topping.</p>

<p>The <strong>number of units sold in southeastern Michigan was down 5.7% in Sept. compared with the same month last year, </strong>while the median sale price continued to inch higher by 5.5% to $169,900.</p>

<p><strong>Real Estate Statistics For Detroit  </strong></p>

<p><strong><a data-image-external-href="" data-image-href="/sites/default/files/inline-images/Detroit-Real-Estate-Market-Trends-Statistics-Slides-2017-2018.jpg?itok=_ZP3NXBm" data-link-option="0" href=""><img data-entity-type="file" data-entity-uuid="868f5de4-3ae6-4574-a14d-c5a403221e3a" data-responsive-image-style="inline_images" height="281" width="500" srcset=" 1x" src="" alt="" typeof="foaf:Image" /></a></strong></p>

<p>RealComp, a Farmington Hills-based multiple listing service, provided new housing data to Detroit Free Press, which showed the tri-county metro Detroit area could be nearing a peak in the residential real estate market. The report said Oakland County felt the most pain, with residential homes sales down 8.9% to 1,399 last month, compared with 1,529 in September 2017.</p>

<p>The median sale price of homes in Oakland County rose 1.8%, far less than the metro's average, to $235,000. The number of listings collapsed 13.6% to 5,209.</p>

<p><strong>“The decline in home sales during September is a combination of the seasonality of the market along with buyers taking in rising home prices and watching where interest rates are heading,” </strong>said Jeanette Schneider, vice president of RE/MAX of Southeastern Michigan, in a press release. “Even with fewer sales, we still have a tight supply of homes and that keeps pricing rising in a market that favors sellers.”</p>

<p>Schneider noted that national housing trends show year-over-year sales dropped by 11.6%, although the median sales price was up 5.6%.</p>

<p>We reported in late Sept. that <a href="">Bank of America rang the proverbial bell</a> on the US real estate market, warning that <strong>existing home sales have peaked, reflecting declining affordability, greater price reductions and deteriorating housing sentiment. </strong>In the Sept. report from chief economist Michelle Meyer, the bank warned that "the housing market is no longer a tailwind for the economy but rather a headwind."</p>

<p><a data-image-external-href="" data-image-href="/sites/default/files/inline-images/Screen-Shot-2018-09-22-at-7.20.10-PM_0.png?itok=64fjJpEM" data-link-option="0" href=""><img data-entity-type="file" data-entity-uuid="6c5a44a2-d832-4847-81e7-479438c50a22" data-responsive-image-style="inline_images" height="401" width="500" srcset=" 1x" src="" alt="" typeof="foaf:Image" /></a></p>

<p>There were 23,832 homes in 18 counties of southwestern Michigan on the market last month, 15% less than September 2017, according to RealComp.</p>

<p>RealComp warned that real estate professionals "are pointing to 2018 as the final period in a long string of sentences touting several happy years of buyer demand."</p>

<p>"Although residential real estate should continue along a mostly positive line for the rest of the year, rising prices and interest rates coupled with salary stagnation and a generational trend toward home purchase delay or even disinterest could create an environment of declining sales," the listing service added.</p>

<p>The bottom line: higher borrowing costs — and higher home values — only make it tougher for millennials to make a deal and buy a home. The 30-year fixed mortgage rate could be at 5.55% in Nov. 2019, according to Robert Dye, chief economist for Dallas-based Comerica. <strong>The too-hot-to-handle housing market in metro Detroit has now plateaued.</strong></p><img src="" height="1" width="1" alt=""/>

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