Metro Detroit Home Prices Up 19 Percent

DETROIT (WWJ) - Metro Detroit is one of the leading areas in the nation for rising home prices.

That's according to latest Standard & Poor's/Case-Shiller home price index, which finds Metro Detroit prices were up 19 percent in May compared to the same month last year.  The national average is about 12 percent.

Supply and demand is driving some of those numbers, says to Kelly Sweeney, CEO of Coldwell Banker/Weir Manuel Real estate in Birmingham.

"There was a time we had a five-year supply of homes," Sweeney told WWJ Newsradio 950's Marie Osborne. "We're down to an average of about 60 days now; and probably more like four or five months in the higher price range."

Sweeney says Central Oakland county is among the local hot spots.

"I would say areas like Birmingham, Bloomfield, Royal Oak — places like that are usually at the top of the appreciation scale, and that's what we're seeing now," Sweeney said, adding that supplies of available homes in that area remains low.

Which price range is seeing the most demand?

" ... That would probably be $250,000 and $300,000 and below. So, there's always more buyers there, and right now, since there's more buyers and less demand, I'd say that's the most aggressive part," Sweeney said.

However, they are seeing activity in all price ranges, "Even the million-dollar homes, which were stagnant for a long time during the recession — they've come back fairly well," Sweeney said.

Banks are keeping up strict lending standards. Sweeney said, if you're a buyer, he recommends arming yourself with 10 percent down payment and a credit score of 720 or better.