(WWJ) Home prices are on the rise for the seventh straight year with a new survey by Real Comp showing the median price of a home in metro Detroit has risen by $13,000 this year.
The median sale price for all sales in the area was up 9 percent, from $139,900 to $152,500.
When will it end?
“Last year at this time, I would have told you that by this time next year we should be in a full-fledged buyers market so quite honestly I don’t have the answer to that and I think nobody does,” said Jeff Glover is an agent at Keller Williams Real Estate. “We won’t find out how long this is going to last until six months after it’s already changed.”
Glover says the prices are up because the number of people selling their homes is down by 40 percent. Less supply equals higher demand and escalating prices.
Overall, inventory is down 38 percent for the same time period, year over year.
Real Comp shows the fastest home sales are in Lathrup Village, Holly, Detroit’s east side, South Lyon and Farmington, followed by Wixom, Wolverine and Brighton. Hazel Park, Oak Park, Montrose Township and Berkley round out the top third.
Houses in those communities sell on average between 14 days and 29 days of going on the market. And they’re not selling cheap.
“The prices have gone straight up,” Glover said. “You’ve got 2011, 12, 13, 14, 15, 16 … that’s now seven years of increases in home values. We’re at least a couple of years beyond the point where it normally starts shifting back the other way, normally every five, six years.”