Oakland County Market Update, March 2020
Avg. Sale-to-List Price
(+0.4% to Mar. 2019)
(-20.3% to Mar. 2019)
(-23.6% to Mar, 2019)
(-13.2% to Mar. 2019)
(+3.7% to Mar. 2019)
What Do The Numbers Mean?
Home prices held steady in March. The median sales price was about 7% higher than in March 2019 and about 8% higher than in February this year, and homes sold for 98% of their list price on average.
We also saw a solid number of home sales in March; about 100 more than in March 2019 and about 425 more than in February. Many of these sales were pending before COVID-19 took hold of metro Detroit. Yet, sellers and buyers were willing to close transactions despite fears of job loss, falling home values, and other economic challenges.
As of March, there was little impact of the pandemic on the average length of time it takes to sell a home. Homes spent an average of 46 days on the market before selling in March, which is 4 days longer than in March 2019 and just one day longer than in February.
Given the significant decline (of 20%) in the number of new listings in March, home buyers are facing even fewer housing options than before the pandemic. Oakland County remains very much a sellers market, with the demand for housing far exceeding the supply. This may be good news for sellers and home prices during the pandemic. With less competition in the listings, Sellers may not feel pressure to lower prices in order to attract buyers.
There is some good news for buyers too. Despite the inventory shortage, active buyers will enjoy a less competitive market as some buyers have delayed any home purchase until after the pandemic. And, of course, the low interest rates make purchasing a home more affordable.
Given that March was a period of great transition - from the very first confirmed cases of coronavirus in Michigan to sheltering at home - April will be a more telling month as to how COVID-19 is impacting the Oakland County housing market. Stay tuned for our April market report.
Please know that we are here to help. We understand the uncertainty and fear you may be feeling. We are here for you to answer any questions and help you find solutions and possibilities during this challenging time. Please do not hesitate to contact us.