HOUSING REPORT SOUTHEAST MICHIGAN SEPTEMBER 2017

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1 SOUTHEAST MICHIGAN SEPTEMBER 2017 Real Estate One Family of Companies, 2017

2 Southeast Michigan $216K +7% from last year Closed Single Family Home Sales 12,086 +6% from last month 4,923-8% from last month 34,122-2% from last year $125 +7% from last year YTD Closed Volume $7.4 Billion Active inventory rose 6% while new pendings fell by 8% in August. Supply levels are still low (about 2 months) in lower and middle price ranges, but jumped to over 5 months in the $400k-$800k range, and to 14 months in the >$800k range. With 749 listings priced over $800k, there were only 52 new August pendings and 52 closed sales. High-end sellers are competing for fewer buyers with more lofty expectations. They have to package and price accordingly. All % % % $10k - 200k % % % $200k - 400k % % % $400k - 800k % % % $800k % 52-16% % YTD Closed Change YTD Change All % $ % $10k - 200k % $ % $200k - 400k % $ % $400k - 800k % $ % $800k % $ % Data source: Realcomp MLS using Great Lakes Repository Data. Change = Change since prior month or year-to-date change in the YTD section. = Closed dollar per square foot.

3 Southeast Michigan Feast or Famine The Feast With rising values and short market times, the 2017 Southeast Michigan market has been kind to sellers with properly packaged and priced listings. Competition for the best properties and sifting through limited and pickedover inventory, however, has been tough on buyers. Properly packaged, equates to well maintained, move-inready, and the detailing done. Appropriately priced means the condition and location have been taken into account and the price is set to excite buyers to write strong offers quickly before another buyer has a chance to outbid them. Sellers who packaged and priced appropriately have frequently been rewarded with quick sales near or over asking price. Over the past three months, 48% of all closed Southeast Michigan transactions had accepted offers within 10 days of listing. Although higher-end homes generally take longer to sell because fewer buyers are qualified to buy them, 31% of the closed >$500k sales had accepted offers within the first 10 days. While every local market, price range and home are different, the table provides a summary based on three price range columns and three rows of market time ranges. The Famine Not all sellers have enjoyed the feast. Many sellers whose homes are still on the market are wondering how they missed out. Heading into September, there were 12,086 available homes for sale in the 5-county Southeast Michigan market. While nearly half the recently sold homes sold in less than 10 days, 64% of the available active listings have been on the market more than 30 days. Average market times shot up for the group of homes that didn t sell in the first 30 days. Average market times for >30 day listings priced under $200k kicked up to 107 Southeast Michigan June, July and August $10k-200k >$200k-500k >$500k Total Units All 8,169 54% 6,292 41% 797 5% 15, % 0-10 days 4,121 50% 3,028 48% % 7,400 48% days 1,912 23% 1,619 26% % 3,736 24% >30 days 2,136 26% 1,645 26% % 4,122 27% Active Listings Southeast Michigan -- Sep 1, 2017 $10k-200k >$200k-500k >$500k Total Units All 5,199 43% 4,856 40% 2,031 17% 12, % 0-10 days % % 123 6% 1,765 15% days 1,284 25% 1,084 22% % 2,600 22% >30 days 2,988 57% 3,057 63% 1,676 83% 7,721 64% >30 avg days days. In the $200k-$500k range, they jumped to 131 days, and for listings priced over $500k, 192 days. The higher the price point, the greater the potential a listing has for falling into the >30 day black hole. Of the current active listings, 57% of the <$200k listings, 63% of the $200k-$500k listings and 83% of the >$500k listings have been on the market more than 30 days. Many of the over-priced or under-packaged active listings will still be on the market next Spring unless they undergo significant pricing or detailing makeovers. Today s buyers want everything done and they are willing to pay for it. There s a reason that about half of the recent closed sales sold in 10 days or less most of those homes were in great condition and/or priced to motivate buyers. Buyers wrote their offers quickly and gave sellers what they were looking for before someone else could. The best way to maximize both the speed of sale and the sale price is to package and price with the intent of exciting buyers to the point where they are afraid of losing the home to another buyer.

4 Oakland County $295K +8% from last year 4,277 +4% from last month 1,629-8% from last month 11,504-2% from last year $150 +7% from last year At $295k year-to-date, average sale prices are up 8%. Inventory levels were up slightly compared to July, but down by 1,400 units compared to the same time last year. Limited inventory has contributed to fewer sales. New pending sales were down 8% compared to July, and there were 600 fewer new pendings compared to August August closings were down 18% compared to a year ago. While entry and mid-level homes are selling quickly, high-end properties are moving slower. With 13 months of inventory priced over $800k, high-end sellers must compete harder for homes. All % % % $10k - 200k % % % $200k - 400k % 748-3% 2.0 8% $400k - 800k % % % $800k % 43-2% % YTD Closed Change YTD Change All % $ % $10k - 200k % $ % $200k - 400k % $ % $400k - 800k % $ % $800k % $ % Data source: Realcomp MLS using Great Lakes Repository Data. Change = Change since prior month or year-to-date change in the YTD section. = Closed dollar per square foot.

5 Macomb County $187K +7% from last year 2, % from last month 1,063-8% from last month 7,524-8% from last year $113 +8% from last year The $187k year-to-date average sale price was up 7% from last year. Inventory levels were up compared to July but down 24% compared to last year. Limited inventory is limiting sales. New pendings in August were down 8% compared to July and down 30% compared to the same month last year. Entry and mid-level markets are moving but high-end sales are stagnant. Seven >$650 listings went pending in August while there were only two closings in that range. All % % % $10-175k % 567-4% % $ k % % % $ k 518 7% 79-22% % $650k+ 75-5% 7 75% % YTD Closed Change YTD Change All % $ % $10-175k % $ % $ k % $ % $ k % $ % $650k % $ % Data source: Realcomp MLS using Great Lakes Repository Data. Change = Change since prior month or year-to-date change in the YTD section. = Closed dollar per square foot.

6 Wayne County $156K +4% from last year 4,139 +5% from last month 1,729-8% from last month 11,707 +4% from last year $102 +6% from last year Sales and values are both up. At $156k year-to-date, average sale price was up 4%. Inventory levels were up 10% compared to July but down compared to the same time last year. Despite limited inventory levels, the number of August closed sales was up compared to both the prior month and prior year. Year-to-date, sales are also up 4% compared to the same period last year. All % % % $10-100k % 646-9% % $ k % % % $ k 732 7% 363-1% 2.0 9% $400k % 95-9% % YTD Closed Change YTD Change All % $ % $10-100k % $ % $ k % $ % $ k % $ % $400k % $ % Data source: Realcomp MLS using Great Lakes Repository Data. Change = Change since prior month or year-to-date change in the YTD section. = Closed dollar per square foot.

7 Grosse Pointe $344K +6% from last year 196 3% from last month 93 0% from last month 604-7% from last year $155 +9% from last year Values are up but closed units are down. At $344k, the year-to-date average sale price was up 6%. Inventory held steady at around 200 available listings but was down 20 units compared to the same time last year. August closed sales were up compared to both the prior month and prior year. Year-to-date, closed sales are down 7%. Upper-end markets are also moving slower than entry and mid-level markets. With 41 available >$700k listings, only one closed in August. All 196 3% 93 0% 2.1 3% $10-200k 24 26% 21-13% % $ k 55 45% 37-8% % $ k 76 1% 30 15% % $700k % 5 67% % YTD Closed Change YTD Change All 604-7% $ % $10-200k % $ % $ k % $ % $ k % $ % $700k+ 34-8% $ % Data source: Realcomp MLS using Great Lakes Repository Data. Change = Change since prior month or year-to-date change in the YTD section. = Closed dollar per square foot.

8 Detroit $48K +12% from last year 1,432 0% from last month 423 0% from last month 2, % from last year $36 +15% from last year Lack of quality inventory continues to restrain the Detroit single family market, yet both unit sales and values are up. With the exception of July, monthly sales have risen each month this year. Values have also been rising steadily month by month. At $48k, year-to-date, average sale price was up 12%. There continues to be a shortage of available homes that are in good condition. All % 423 0% 3.4 0% $5-30k 686-1% 191-1% 3.6 0% $30-100k 643-2% 174-2% 3.7 1% $ k 44 22% 39 56% % $200k % 19-27% % YTD Closed Change YTD Change All % $ % $5-30k % $ % $30-100k % $ % $ k % $ % $200k % $ % Data source: Realcomp MLS using Great Lakes Repository Data. Change = Change since prior month or year-to-date change in the YTD section. = Closed dollar per square foot.

9 Detroit Condos/Lofts $213K +6% from last year % from last month 35 +6% from last month % from last year $153 +7% from last year Lack of quality inventory continues to restrain this market. Values are up especially at the higher-end but the number of sales overall is down compared to last year. The limited number of sales and available units, combined with the high variation of condition of the sold units, keeps the Condo chart (see above) moving sporadically. Overall, average sale price is up 6%, is up 7%, closed units are down 10%, however, there is a huge variation from $22/SF to $310/SF depending on price range. Year-to-date, for over $350k sales is up 33%. All 119 2% 35 6% 3.4-4% $5-75k 11-15% 4-43% % $75-200k 13-7% 11 0% 1.2-7% $ k 46 7% % % $350k+ 49 4% 10 0% 4.9 4% YTD Closed Change YTD Change All % $ % $5-75k 42-29% $ % $75-200k 78 3% $ % $ k 68-8% $ % $350k % $ % Data source: Realcomp MLS using Great Lakes Repository Data. Change = Change since prior month or year-to-date change in the YTD section. = Closed dollar per square foot.

10 Downriver $129K +8% from last year % from last month 432-7% from last month 2,812-3% from last year $93 +8% from last year Heading into September, inventory was 205 units lower than a year ago. Low inventory is limiting buyer option and constricting the number of homes sold. New pending sales were down 51 units and closed sales were down 46 units compared to August Although YTD values are up 8% (both average sale price and ), they would be even higher if there were more move-in-ready listings available. All 790 9% 432-7% % $10-75k % 74-18% % $75-125k % 137-7% % $ k 259 4% 177-5% % $250k % 44 2% 3.4-4% YTD Closed Change YTD Change All % $ % $10-75k % $ % $75-125k 918-2% $ % $ k % $ % $250k % $ % Data source: Realcomp MLS using Great Lakes Repository Data. Change = Change since prior month or year-to-date change in the YTD section. = Closed dollar per square foot.

11 Livingston County $275K +6% from last year % from last month % from last month 1,923-3% from last year $140 +6% from last year Inventory and closed sales are down but values are up. The number of available listings heading into September was down 12% compared to a year ago. Low inventories impact sales. August closed units fell from 330 last year to 304 this year. Year-to-date, closed sales were down 3%. With a YTD average sale price of $275, values are up 6%. There have been more higher-end over $300k sales but values have been flat for higher-end sales, and market times have been increasing. All % % % $10-200k % 62-32% % $ k % 115 3% % $ k 305 7% 78-10% % $500k % 11-31% % YTD Closed Change YTD Change All % $ % $10-200k % $ % $ k 828 5% $ % $ k % $ % $500k % $ % Data source: Realcomp MLS using Great Lakes Repository Data. Change = Change since prior month or year-to-date change in the YTD section. = Closed dollar per square foot.

12 St. Clair County $157K +9% from last year % from last month % from last month 1,464-3% from last year $97 +8% from last year Inventory is 30% lower than it was heading into September last year. The number of YTD closed sales was off 3% but values were up. The YTD average sale price was up 9%, and up 8% compared to a year ago. Supply levels remain low (around 2 months) for homes priced under $200k. Market times increase slightly for $200k-$400k listings but jump to over 14 months for homes priced above $400k. The over $400k listings make up 15% of available listings but only 3% of YTD closings. High-end sellers need to price competitively.. All 591 4% 236 3% 2.5 2% $10-100k 104-8% 48-34% % $ k 193 7% % 1.7-8% $ k 207 6% 71 42% % $400k % 6-45% % YTD Closed Change YTD Change All % $ % $10-100k % $ % $ k 620-4% $ % $ k 343 1% $ % $400k % $ % Data source: Realcomp MLS using Great Lakes Repository Data. Change = Change since prior month or year-to-date change in the YTD section. = Closed dollar per square foot.