Metro Detroit sees largest year-over-year increase in homes sales in the U.S.

Pending Home Sales
Posted at 9:29 AM, Jun 21, 2021
and last updated 2021-06-21 09:29:21-04

(WXYZ) — Metro Detroit saw the largest increase in home sales from year to year, according to the RE/MAX National Housing Report that was just released.

According to the report, home sales in metro Detroit are up 137% from May 2020 to May 2021.

In the metro area, there were 4,549 homes sold, compared to 1,923 homes sold in May 2020.

Oakland County saw the largest increase in year-over-year sales at 171%, and Wayne County prices were up 32.6%.

"Metro Detroit led the nation in the percentage increase of homes sold year-over-year. Last May, home sales were down 70%, and this year we are up 137%. Much of this swing can be attributed to the COVID restrictions in our state last year, causing the spring market to be less active," Jeanette Schneider, the president of RE/MAX of Southeastern Michigan, said. "Since then, our market has seen intense interest from buyers, which has kept home sales and home prices increasing. The market continues to favor sellers with low inventory and historically fast turnaround time for homes to sell."

Metro Detroit still has just a one-month supply of homes.

According to the National Association of Realtors, homes are counted as inventory when a seller lists a property. When it goes under contract, it becomes a pending sale.

The NAR said that if inventory is rising, there is less pressure for home prices to increase.

Months' supply, according to the NAR, means the number of months it would take for the current inventory of homes to sell if no other homes were to hit the market, given the current inventory.

So, right now in metro Detroit, it would take less than a month for all available homes to sell if no other homes went up for sale.

When there is a lower supply, prices increase more rapidly.