Royal Oak Real Estate News & Market Trends

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

April 23, 2021

Housing Market Royal Oak March

Monthly REALCOMP Market Update

REALCOMP SE Michigan Area including Royal Oak, Ferndale, Berkley, Clawson

March 2021

Normal spring increases in sales activity, coupled with relaxing COVID-19 policies, created a very busy March real estate market as buyer demand continued largely unabated in the face of rising home prices and mortgage rates. Existing home seller and new construction activity continue to remain below levels necessary to bring the market back into balance, pointing to a busy and competitive buyer market in the coming months.

Closed Sales decreased 1.3 percent for Residential homes but increased 13.5 percent for Condo homes. Pending Sales increased 23.6 percent for Residential homes and 75.5 percent for Condo homes. Inventory decreased 60.0 percent for Residential homes and 48.6 percent for Condo homes.

The Median Sales Price increased 13.1 percent to $210,000 for Residential homes and 11.1 percent to $200,000 for Condo homes. Days on Market decreased 44.8 percent for Residential homes and 27.0 percent for Condo homes. Months Supply of Inventory decreased 60.0 percent for Residential homes and 53.3 percent for Condo homes.

While many homebuilders are working to increase their activity, the cost of lumber and other materials and a backlogged supply chain continue to limit new home construction and have increased costs substantially. New methods of construction, including 3d printed homes, could speed construction and reduce costs in the future, but realistically are several years away from making a measurable impact in the market.

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Source:  REALCOMP as of April 7, 2021. All data from Realcomp II Ltd. Report © 2021 ShowingTime.

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Please contact me directly if you have any real estate questions or need assistance with buying, selling or renting a home.  I'm always here to help!  Check back next month for the next market update!   - Chris Lynn

March 20, 2021

Housing Market Royal Oak February

Monthly REALCOMP Market Update

REALCOMP SE Michigan Area including Royal Oak, Ferndale, Berkley, Clawson

February 2021

Mortgage interest rates ticked a bit higher in February, but remain below their February 2020 levels. Interest rates may rise a bit further in coming weeks, but according to Freddie Mac chief economist Sam Khater, “while there are multiple temporary factors driving up rates, the underlying economic fundamentals point to rates remaining in the low 3 percent range for the year.” With rates still at historically low levels, home sales are unlikely to be significantly impacted, though higher rates do impact affordability.

Closed Sales decreased 0.8 percent for Residential homes but increased 11.8 percent for Condo homes. Pending Sales decreased 12.1 percent for Residential homes but increased 4.7 percent for Condo homes. Inventory decreased 57.0 percent for Residential homes and 38.4 percent for Condo homes.

The Median Sales Price increased 11.4 percent to $194,900 for Residential homes and 13.0 percent to $192,175 for Condo homes. Days on Market decreased 36.8 percent for Residential homes and 16.1 percent for Condo homes. Months Supply of Inventory decreased 58.3 percent for Residential homes and 39.3 percent for Condo homes.

For homeowners currently struggling due to COVID-19, government agencies are continuing efforts to help those in need. The Federal Housing Finance Agency announced they will allow homeowners with loans backed by Fannie Mae and Freddie Mac to receive an additional three months of forbearance, extending total payment relief to up to 18 months. Qualified homeowners must already be in a forbearance plan as of the end of February.

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Source:  REALCOMP as of March 5, 2021. All data from Realcomp II Ltd. Report © 2021 ShowingTime.

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Please contact me directly if you have any real estate questions or need assistance with buying, selling or renting a home.  I'm always here to help!  Check back next month for the next market update!   - Chris Lynn

Feb. 21, 2021

Royal Oak Housing Shortage 2021

Challenging for Buyers in Hot Seller's Market

Royal Oak, Ferndale, Berkley, Clawson, Troy and all Metro Detroit areas are experiencing multiple offers, appraisal guarantees and other competitive offerings from buyers.  If selling your home there has never been a better time. 

Article below from Realtor.com provides insight on the challenging housing market buyers are experiencing throughout most of the nation.

Home Buyers Have It Tough as Nation Faces Unprecedented Housing Shortage

 | Feb 4, 2021

Royal Oak Housing Shortage 2021It's no news to house hunters that the pickings are slim in today's real estate market. While that has been true for several years, the pandemic has made the situation worse as virus-wary home sellers have pulled their properties off the market, resulting in sky-high prices and out-of-control bidding wars for the remaining stock.


Overall housing inventory plummeted 43% in January compared with the same month last year, according to a recent realtor.com® report. New listings were down 23% year over year.

Median home prices soared 15.4% annually, to $346,000 in January, as a result of the shortage. That means buyers should gear up for battle—it's going to be a very competitive spring home-buying season.

"It's tough for buyers, particularly first-time buyers dealing with limited options and fast-rising prices," says realtor.com® Chief Economist Danielle Hale. "We're looking at an all-time low number of homes for sale and record numbers of buyers trying to get into the market."

There were 443,000 fewer homes up for grabs this year than last year, before COVID-19 hit the nation. And while builders have ramped up their pace of putting up new homes, that doesn't seem to have made much of a dent yet. The hope is that once more people get vaccinated against the coronavirus, sellers will feel more comfortable listing their homes.

The threat of catching the virus from a potential buyer walking through and having to move in a pandemic has led many sellers to hold off.

Home prices rose the most in the Northeast, by 16.8%, followed by the West, at 12.3%, the Midwest, at 10.4%, and the South, at 8%.

In the nation's 50 largest metropolitan areas, prices shot up the most in Austin, TX, by 30.2%. It was followed by Rochester, NY, by 25.9%, and Los Angeles, by 22.4%, in January.

"We've seen a lot of companies announce relocations to Austin," says Hale. "It's also benefiting from additional flexibility and remote work. It has a unique culture and this really vibrant tech scene making it an attractive place to live, and it's got a really strong local economy."

The only places to see big surges of inventory were in the two priciest metropolitan areas in the nation: Silicon Valley's San Jose, CA, and San Francisco. The San Francisco Bay Area markets saw 24.8% and 14.4% annual increases in the number of homes for sale in January, respectively. That's likely because many white-collar workers who can now telecommute from anywhere with a good internet connection have sought out cheaper parts of the country.

"Homes still sell very quickly, and it still is a very desirable market," says Hale. "It's an expensive area, and people have the flexibility to work remotely now and may be choosing to move away."

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Source:  Realtor.com as of February 4, 2021. By  Article "Home Buyers Have It Tough as Nation Faces Unprecedented Housing Shortage"

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Feb. 20, 2021

Housing Market Royal Oak January

Monthly REALCOMP Market Update

REALCOMP SE Michigan Area including Royal Oak, Ferndale, Berkley, Clawson

January 2021

January started off strong for the housing market, with healthy buyer demand and strong market fundamentals. A robust increase in housing starts in December points to an active year for new construction, but higher material costs, especially lumber, and a limited supply of buildable lots will temper the number of new units.

Closed Sales increased 6.1 percent for Residential homes but decreased 2.4 percent for Condo homes. Pending Sales decreased 0.5 percent for Residential homes but increased 12.8 percent for Condo homes. Inventory decreased 54.1 percent for Residential homes and 33.9 percent for Condo homes.

The Median Sales Price increased 15.9 percent to $197,000 for Residential homes and 3.9 percent to $180,000 for Condo homes. Days on Market decreased 28.8 percent for Residential homes and 19.0 percent for Condo homes. Months Supply of Inventory decreased 56.0 percent for Residential homes and 35.7 percent for Condo homes.

The Mortgage Bankers Association’s January research estimates approximately 2.7 million homeowners with mortgages are currently in forbearance plans. Some of these homes may eventually come to market, but given the strong appreciation in most market segments in recent years, these eventual home sales are likely to be mostly traditional sellers. However, a modest increase in short sales and foreclosures at some point this year would not be surprising.

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Source:  REALCOMP as of February 5, 2021. All data from Realcomp II Ltd. Report © 2021 ShowingTime.

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Please contact me directly if you have any real estate questions or need assistance with buying, selling or renting a home.  I'm always here to help!  Check back next month for the next market update!   - Chris Lynn

Jan. 25, 2021

Housing Market Royal Oak December

Monthly REALCOMP Market Update

REALCOMP SE Michigan Area including Royal Oak, Ferndale, Berkley, Clawson

December 2020

December is normally one of the slowest months of the year but strong buyer demand across most segments of the market, buoyed by near-record low - 45.9% interest rates, continue to drive a healthy sales pace in the face of a new waveof COVID-19 infections and a softening jobs market.

Closed Sales increased 22.2 percent for Residential homes and 11.9 percent for Condo homes. Pending Sales increased 20.5 percent for Residential homes and 19.4 percent for Condo homes. Inventory decreased 48.3 percent for Residential homes and 28.8 percent for Condo homes.

The Median Sales Price increased 17.2 percent to $204,900 for Residential homes and 10.3 percent to $183,000 for Condo homes. Days on Market decreased 23.9 percent for Residential homes and 21.3 percent for Condo homes. Months Supply of Inventory decreased 50.0 percent for Residential homes and 29.6 percent for Condo homes.

With low mortgage rates and strong buyer demand in most market segments, the housing market of early 2021 looks to continue the trends we saw in the second half of 2020. Low inventory and multiple offers on in-demand properties and market segments are likely to remain common while the market waits and hopes for a boost in new construction and a surge in home sellers to help provide more balance to the market.

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Source:  REALCOMP as of January 8, 2021. All data from Realcomp II Ltd. Report © 2021 ShowingTime.

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Please contact me directly if you have any real estate questions or need assistance with buying, selling or renting a home.  I'm always here to help!  Check back next month for the next market update!   - Chris Lynn

Jan. 2, 2021

Housing Market Royal Oak November

Monthly REALCOMP Market Update

REALCOMP SE Michigan Area including Royal Oak, Ferndale, Berkley, Clawson

November 2020

November saw the Dow Jones Industrial Average top 30,000 for the first time, while mortgage rates reached new record lows again. These new records have provided encouragement for buyers to move forward on home purchases, which continued to remain strong overall for the month.

Closed Sales increased 11.8 percent for Residential homes and 18.2 percent for Condo homes. Pending Sales increased 20.6 percent for Residential homes and 19.5 percent for Condo homes. Inventory decreased 45.8 percent for Residential homes and 28.2 percent for Condo homes.

The Median Sales Price increased 15.4 percent to $210,000 for Residential homes and 10.9 percent to $183,000 for Condo homes. Days on Market decreased 19.0 percent for Residential homes but increased 20.0 percent for Condo homes. Months Supply of Inventory decreased 48.4 percent for Residential homes and 29.0 percent for Condo homes.

Showing activity remains higher than the same period a year ago across most of the country, suggesting that strong buyer demand is likely to continue into what is typically the slowest time of year. With inventory remaining constrained in most market segments, sellers continue to benefit from the tight market conditions.

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Source:  REALCOMP as of December 7, 2020. All data from Realcomp II Ltd. Report © 2020 ShowingTime.

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Please contact me directly if you have any real estate questions or need assistance with buying, selling or renting a home.  I'm always here to help!  Check back next month for the next market update!   - Chris Lynn

Jan. 2, 2021

Homes For Sale In Royal Oak

Searching for the Newest Homes or Lofts for Sale in the Royal Oak area?

Check out the latest List of Homes and Condos for Sale in Royal Oak from the MLS including the area's popular lofts and townhomes!   

Also be sure to utilize the search tool on this website to search on homes listed for sale in surrounding areas including Ferndale, Hazel Park, Oak Park, Pleasant Ridge, Huntington Woods, Berkley, Clawson, Birmingham, Troy and any Michigan location. 

If there are homes you want to see contact Chris today to quickly set up a showing tour!

Homes For Sale Royal Oak, MI

 

Posted in Royal Oak
Nov. 26, 2020

Housing Market Royal Oak October

Monthly REALCOMP Market Update

REALCOMP SE Michigan Area including Royal Oak, Ferndale, Berkley, Clawson

October 2020

October continued to be busier than the calendar normally suggests. Buyer activity remains higher than normal for this time of year, while in many - 41.2% segments of the market housing supply remains much lower than one year ago. Multiple offers remain a common occurrence in many areas, keeping housing hot while the temperatures continue to fall.

Closed Sales increased 19.1 percent for Residential homes and 15.5 percent for Condo homes. Pending Sales increased 16.2 percent for Residential homes and 18.0 percent for Condo homes. Inventory decreased 43.4 percent for Residential homes and 24.6 percent for Condo homes.

The Median Sales Price increased 16.0 percent to $210,000 for Residential homes and 5.9 percent to $180,000 for Condo homes. Days on Market decreased 14.3 percent for Residential homes and 2.4 percent for Condo homes. Months Supply of Inventory decreased 44.1 percent for Residential homes and 25.0 percent for Condo homes.

Mortgage rates dropped to new record lows again in October, helping to offset the monthly mortgage payment increases caused by the rise in home prices seen in many segments of the market across the country. While prices often dip a bit in the winter months, continued buyer demand may temper any price retreats this year.

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Source:  REALCOMP as of November 23, 2020. All data from Realcomp II Ltd. Report © 2020 ShowingTime.

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Please contact me directly if you have any real estate questions or need assistance with buying, selling or renting a home.  I'm always here to help!  Check back next month for the next market update!   - Chris Lynn

Oct. 29, 2020

What's My Home Worth Berkley MI

Get an Instant Property Valuation Now

What's My Home Worth Berkley MIWondering What Your Berkley Home is Worth?

Get an INSTANT property valuation emailed to you now that provides an estimated range of what your Berkley home could sell for in today's market!  This report uses data from recent home sales in your neighborhood.

Begin by simply filling out the form below or contact me directly... 

 

Oct. 26, 2020

Home Buying with Record Low Mortgage Rates in Royal Oak, Ferndale, Berkley Area


Mortgage rates dive even deeper, 
extending a boon for borrowers

Written By: Ethan Rotberg on MoneyWise as of 10/22/2020

Home Buying with Record Low Mortgage Rates - Royal Oak, Ferndale, Berkley Area


Mortgage rates have dropped even further and have extended their record-setting run, according to a popular survey. .

As a result, rates on 30-year fixed-rate home loans today are more than a full percentage point lower than where they averaged over the last five years, mortgage giant Freddie Mac says.

All-time-low rates continue to spark a borrowing frenzy among homeowners, with refinance requests maintaining a blistering pace.

Potential homeowners are taking advantage of the low-rate environment, too, despite low numbers of homes for sale.

Rates find new depths

Mortgage rates hit an all-time low for a second week in a row, and for the 11th time since the pandemic began in March, Freddie Mac said on Thursday.

Rates for a 30-year fixed-rate home loan are averaging 2.80%, a tick down from the previous week’s 2.81%, and almost a full percentage lower than this time last year, when rates stood at an average 3.75%.

“Mortgage rates remain very low, providing homeowners who have not already taken advantage of this environment ample opportunity to do so,” says Sam Khater, Freddie Mac’s chief economist.

Even against the backdrop of an unrelenting shortage of houses on the market, sales of existing single-family homes rose in September at their fastest annual rate since 2010, the National Association of Realtors reported Thursday.

“Low mortgage rates are enabling buyers to tackle higher home prices and secure a place of their own, with a largely fixed monthly cost,” says Realtor.com chief economist Danielle Hale.

“Greater buyer and, perhaps more importantly, seller confidence also helped boost home sales activity this month,” she adds.

The Freddie Mac survey shows rates on other popular mortgages also have dipped. The average for a 15-year fixed-rate mortgage declined to 2.33%, from 2.35% a week earlier. Rates on those mortgages, often used for refinance loans, remain just a fraction of what they were a year ago, when the average was 3.18%.

Rates on 5/1 adjustable-rate mortgages, or ARMs, are averaging 2.87%, down from the prior week’s 2.90%, and way down from last year’s 3.40%.

Homeowners still have opportunities to save thousands

“Low- and moderate-income borrowers who purchased during the last few years stand to benefit by exploring refinancing to lower their monthly payment,” says Freddie Mac’s Khater.

Overall refi requests have been shooting higher, according to the Mortgage Bankers Association, with applications for those loans up an eye-popping 74% compared to a year ago.

But many homeowners are still holding back. An estimated 19.3 million mortgage holders could refinance and lower their interest rates enough to reduce their monthly payments by an average $299, according to research from the mortgage data firm Black Knight.

Borrowers who procrastinate risk missing out on savings, because a new 0.5% fee on refinance loans may lead to a hike in refi rates.

Freddie Mac and Fannie Mae — government-sponsored mortgage companies that buy most U.S. home loans from lenders — say they need the fee to offset losses related to the pandemic.

That means good refi candidates — those with a solid credit score and at least 20% home equity — need to hurry to lock in the best rates before the new fee officially goes into effect on Dec. 1.

A Freddie Mac study found if you shop around to five lenders, you'll pay an average of $3,000 less over time than someone who seeks out only one mortgage offer.

Those same comparison shopping skills can come in handy when you buy or renew your homeowners insurance, so you’ll get the right coverage at the lowest possible price.

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Source:  MoneyWise as of October 22, 2020; Written by: Ethan Rotberg. Link to Article: https://moneywise.com/a/mortgage-rates-10-2020

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Contact me directly if you have any real estate questions or need assistance with buying, selling or renting a home.  I'm always here to help! Servicing Royal Oak, Ferndale, Berkley, Clawson, Hazel Park and surrounding area.   - Chris Lynn