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