Housing inventory in metro Detroit continues decline

Average days on the market down 22 percent

Macomb, Washtenaw counties see large median sales price increases

Declining housing inventory in metro Detroit continued to drive up sales prices in September.

The number of on-market listings in metro Detroit fell 28.6 percent to 13,315 last month compared to 18,657 at the same time last year, according to housing data from Farmington Hills-based Realcomp Ltd. II. The average days on market also fell 22 percent, indicating that available homes are being purchased more quickly.

Overall, the most recent data follows the same story line that started two or three years ago, said David Elya, treasurer of Realcomp and owner of Rochester-based Brookview Realty. It's a seller's market and likely will be that way for a while.

"I don't see the market going down; overall, there is no bubble that is ready to burst," Elya said. "It feels like people are more confident. A lot of sellers are able to sell now because equity has returned to levels before the recession."

What that means for buyers is less to choose from and higher prices, but the strong market also protects their investment.

Median sales prices in metro Detroit rose 3.2 percent year-over-year from $167,600 to $173,000.

Detroit's housing stock value is still on the rebound. Median sales prices in the city jumped 44 percent to $32,750, which was by far the largest increase in Southeast Michigan. Inventory in the city fell 35 percent from 2,526 last year to 1,643 in September, which was also among the largest percentage changes in the region, surpassed only by St. Clair County's 35.4 percent.

Livingston County was the only area in metro Detroit to see a dip in median sales prices in September, with a 0.9 percent fall from $239,000 to $236,750.

Besides Detroit, the largest median sales price increase in metro Detroit was in Macomb County, which saw an 8.4 percent rise from $149,500 to $162,000. Washtenaw County, which includes Ann Arbor, saw median sales prices shoot up 17.6 percent to $264,500 in September from $225,000 a year earlier.

Driven by a decline in listings in Detroit, Wayne County had the largest year-over-year inventory drop: 6,967 to 4,755, a 31.7 percent decrease. Inventory also declined in every county in metro Detroit.

Elya said sales traditionally slow down during the holidays, but he expects them to pick back up come February.

"The hard question is when we get asked by every buyer, 'Are the prices going to go down?'' he said. "We wish we knew, but there is no crystal ball."