Monthly REALCOMP Market Update

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

January 2023

The US housing market began the year in a state of rebalance, with many buyers and sellers remaining cautious while they wait to see where the market is headed. Nationally, pending sales rose 2.5% month-to-month, marking the first increase since May, while sales of existing homes fell 1.5% as of last measure, according to the National Association of Realtors® (NAR). Demand for housing persists, but higher mortgage interest rates have cut into housing affordability, with total home sales down 17.8% last year compared to 2021.

Closed Sales decreased 29.0 percent for Residential homes and 34.6 percent for Condo homes. Pending Sales decreased 12.5 percent for Residential homes and 22.0 percent for Condo homes. Inventory increased 15.8 percent for Residential homes and 13.0 percent for Condo homes.

The Median Sales Price increased 1.0 percent to $210,000 for Residential homes but decreased 5.2 percent to $208,625 for Condo homes. Days on Market increased 19.4 percent for Residential homes and 16.7 percent for Condo homes. Months Supply of Inventory increased 33.3 percent for Residential homes and 30.8 percent for Condo homes.

As sales slow, time on market is increasing, with the average home spending 26 days on market as of last measure, according to NAR. Seller concessions have made a comeback, giving buyers more time and negotiating power when shopping for a home. Although home prices remain high, mortgage rates declined steadily throughout January, falling to their lowest level since September, sparking a recent surge in mortgage demand. Lower rates should aid in affordability and may soon lead to an uptick in market activity ahead of the spring selling season.


Source:  REALCOMP | Current as of February 7, 2023. All data from Realcomp II Ltd. Report © 2023 ShowingTime.


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