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