SOUTHFIELD–It’s still a seller’s market, but the Detroit-area real estate market inched a bit closer to pre-pandemic normalcy in March, according to new figures from the Greater Metropolitan Association of Realtors and Realcomp II Ltd.
The number of new listings on the market was 12,350 in March, up 4 percent from 11,804 a year earlier. Pending sales stood at 10,763, up 29.2 percent from 8,329 a year earlier.
The median sale price hit an all-time record of $210,000 in March, up 13.5 percent from $185,000 in March 2020.
Other figures show it’s still a seller’s market, with the percentage of list price received standing at 100 percent, up from 97.6 percent a year earlier.
GMAR officials said 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.
The months’ supply of inventor remained tiny, at just 1 month, down from 2.6 months a year earlier, and nearly twice that two years ago.
GMAR officials said that 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.