SOUTHEAST MICHIGAN 2ND QUARTER 218
Southeast Michigan Curb Appeal for Added Value Curb appeal plays a significant role in getting your home ready to sell. Among Realtors, 94% have suggested that sellers improve their curb appeal before listing a home for sale. First impressions are very important to make it s in our psychology. Although you shouldn t judge a book by its cover, it s what buyers do when they first pull up to a property. Making a good first impression could be the difference between a quick sale or coming to the realization that you need a price reduction. Ninety-nine percent of Realtors believe that curb appeal is important to attracting buyers. You could say that universally it has a large impact on whether or not your home will sell. But what sort of outdoor features are the most important to a prospective buyer? Not all improvements are treated equally. Here are the top 13 exterior improvements you can make as ranked by Realtors. 1. Standard lawn care service 2. Landscaping maintenance 3. Overall landscape upgrade 4. Tree care 5. New wood deck 6. New patio 7. Landscape lighting 8. Fire feature 9. Irrigation system installation 1. Statement landscape 11. Outdoor kitchen 12. New pool 13. Water feature Standard lawn care service was ranked as the number one project that appeals to buyers. Realtors estimate that lawn care would recover 267% of the cost estimated by landscaping professionals. For example, if you theoretically spent $375 on lawn care services before selling, you would actually see a return of $1,. Although lawn care is part of being a homeowner, maybe leave it to the pros when it comes time to sell your home. This especially applies to investment properties too! Home buyers need to visualize themselves living in the home and the yard is the first thing they see. Not every project you embark on will return the full value of the renovation when you go to sell your home. It is important for agents and clients to understand the difference between the cost of the improvement against the value actually added. On the other end of the spectrum we have a new pool or water feature. For example, the average cost to install an inground pool at $57,5 would only recover about $25,. That s only a 43% value recovered from that project that you thought was an improvement. Think of it as driving a new car off the lot at the dealership you lose value almost immediately. We believe you recover even less of that cost in regions where you can t use a pool year round, such as Michigan. Not every exterior addition is completed with the intention to add value when it comes time to sell. Some exterior features are added simply for the enjoyment of having the feature in your home. If we go back to our pool example, 92% of people who took on the project said they had a greater desire to be home since they installed their new pool. You may love some of these extra exterior features of your home more once you add them. Just don t expect the next owner to pay the price for every addition. This information was taken from a study conducted by the National Association of Realtors from March to April 218. Copyright 218, Johnstone and Johnstone
Southeast Michigan 1,412 +11% from last month 5,738 +3% from last month 22,685-7% from last year $225K +6% from last year $132 +7% from last year Closed Single Family Home Sales 6, $16 5, $14 4, 3, $12 2, $1 1, $8 YTD Closed Volume: 5.1 Billion (-1%) Available 1,412 1,699-3% Closed 13,372 14,451-7% All Months Supply 2.3 2.2 5% Avg. Sale Price $235K $224K 5% $ Vol (million) 3,136 3,232-3% Available 4,1 4,318-7% Closed 6,753 7,739-13% $1-2k Months Supply 1.8 1.7 6% Available 3,129 3262-4% Closed 4,96 5,146-4% $2-4k Months Supply 1.9 1.9. Available 2,453 2,332 5% Closed 1,487 1,382 8% $4-8k Months Supply 4.9 5.1-2% Value Change 3% Available 829 787 5% Closed 172 184-7% $8k+ Months Supply 14.5 12.8 13% Value Change 4% Lack of available inventory continues to challenge buyers, especially in the entrylevel price ranges. Both 2nd quarter and year-to-date closed sales have been down by 7%, while average price with its 6% increase has nearly balanced closed sales volume with last year. Through the first half of the year, closed volume for the 5-county Southeast Michigan market was $5.1 billion compared to $5.18 billion last year. The best move-in-ready listings continue to sell fast with multiple offers. Fifty-three percent of all closed sales were pending (under contract) within 1 days of listing. Forty-five percent of sales sold at or above full asking price. Copyright 218, Johnstone and Johnstone
Oakland County 3,97 +1% from last month 1,919 +6% from last month 7,445-9% from last year $31K +6% from last year $158 +6% from last year 2, 1,6 1,2 8 4 $17 $16 $15 $14 $13 $12 Available 3,97 3,94-1% Closed 4,499 4,988-1% All Months Supply 2.6 2.4 1% Avg. Sale Price $318K $31K 6% $ Vol (million) 1,435 1,56-5% Available 547 64-15% Closed 1,324 1,672-21% $1-2k Months Supply 1.2 1.1 8% Available 1,323 139 1% Closed 2,116 2,39-8% $2-4k Months Supply 1.9 1.7.1 Available 1,432 1,411 1% Closed 928 866 7% $4-8k Months Supply 4.6 4.9-5% Value Change 3% Available 65 58 4% Closed 131 141-7% $8k+ Months Supply 13.9 12.3 12% Heading into July, inventory levels were nearly even with both last month and last year. June new pending sales were up 6%. Those new contracts will help ensure a rise in July closings. Year-to-date, closed sales have been down 9%, but both average sale price and price per square foot were up 6%. With $2.3 billion in closed sales, volume was down 3%. As prices continue to rise, first-time buyers are challenged with finding affordable entrylevel homes. At the same time, the number of sales in the upper-middle price ranges have been rising. Buyers continue to pounce on the best new listings as soon as they hit the market. This year, nearly half of Oakland County sales have sold within 1 days and at or above asking price 48% within 1 days and 45% at or above asking.
Birmingham 181 no change from last month 51 +16% from last month 217-1% from last year $76K +8% from last year $284 +9% from last year Available 181 167 8% Closed 135 143-6% All Months Supply 4. 3.5 15% Avg. Sale Price $693K $654K 6% $ Vol (million) 94 94 % Available 17 19-11% Closed 42 38 11% $1-2k Months Supply 1.2 1.5-19% Value Change 4% Available 66 58 14% Closed 56 7-2% $2-4k Months Supply 3.5 2.5 42% Value Change 8% Available 42 49-14% Closed 23 26-12% $4-8k Months Supply 5.5 5.7-3% Value Change 3% Available 56 41 37% Closed 14 9 56% $8k+ Months Supply 12. 13.7-12% Heading into July, inventory levels were even with last month and down slightly from last year. Sales dropped from 55 in May to 46 in June. Year-to-date sales are down 1%. Values however, have been rising. The $76k average Birmingham sale price is up 8% from $655k last year at this time. With 24 sales in excess of $1.4m, compared to 13 last year, Birmingham s luxury market has been strong both in the 2nd quarter and year-to-date. Average market times for those sales also dropped by 46 days down to 14 days, and one out of five sold at or above asking price.
Macomb County 1,75 +14% from last month 1,171-2% from last month 4,963-7% from last year $195K +5% from last year 1,6 1,2 8 4 $14 $12 $1 $8 $12 +6% from last year $6 Available 1,75 1,779-4% Closed 2,91 3,137-7% All Months Supply 1.8 1.7 3% Avg. Sale Price $21K $193K 4% $ Vol (million) 585 67-4% Available 266 341-22% Closed 713 862-17% $1-125k Months Supply 1.1 1.2-6% Value Change 9% Available 413 473-13% Closed 1,213 1,296-6% $125-225k Months Supply 1. 1.1-7% Available 64 65 % Closed 827 826 % $225-4k Months Supply 2.2 2.2 % Available 422 36 17% Closed 157 153 3% $4k+ Months Supply 8.1 7.1 14% Value Change -3% Inventory levels have been rising, but are still 7% lower than last year. While the market had been gaining momentum, June was off a little in both closed sales and new pendings. Year-to-date sales have been down 7% but values have been up average sale price was up 5% and price per square foot 6%. The line in the chart above shows a steady increase in value through the first half of the year. Buyers continue to jump on the best listings the minute they hit the market. More than half (57%) of Macomb County sales have been pending within 1 days. Forty-five percent of the sales have been at or above list price. Sales in the upper-end markets have been even with last year. The decline in sales has been primarily toward the entry level where available listings are scarce.
Wayne County 3,655 +8% from last month 2,96 +4% from last month 8,94-4% from last year $161K +7% from last year $18 +8% from last year 2, 1,6 1,2 8 4 $12 $11 $1 $9 $8 Available 3,655 3,75-1% Closed 4,617 4,854-5% All Months Supply 2.4 2.3 4% Avg. Sale Price $168K $159K 6% $ Vol (million) 78 775 1% Available 1,81 1,725 4% Closed 1,567 1,844-15% $1-1k Months Supply 3.4 2.8 23% Value Change 3% Available 762 853-11% Closed 1,659 1,665 % $1-2k Months Supply 1.4 1.5-1% Value Change 4% Available 585 669-13% Closed 1,99 1,8 2% $2-4k Months Supply 1.6 1.9-14% Value Change 3% Available 57 458 11% Closed 292 265 1% $4k+ Months Supply 5.2 5.2 % Value Change 4% Available listing inventory has been rising, but remains 8% lower than it was at this time last year. The tight inventory levels continue to make it difficult for buyers to find the move-in-ready homes they are looking for. The problem is more acute with the entry-level homes that first-time buyers are looking for. This issue creates frequent intense buyer competition. More than half of this year s Wayne County sales have been pending in 1 days or less. Forty-five percent of the closed sales have sold at or above full asking price. As the year progresses, the upper-end market continues to grow while the entrylevel market shrinks.
Detroit 1,558-1% from last month 519 +15% from last month 1,88-1% from last year $57K +26% from last year $43 +26% from last year 4 35 3 25 2 15 1 5 $6 $5 $4 $3 $2 $1 Available 1,558 1,366 14% Closed 964 995-3% All Months Supply 4.8 4.1 18% Avg. Sale Price $55K $46K 19% $ Vol (million) 54 46 15% Available 655 659-1% Closed 455 586-22% $5-3k Months Supply 4.3 3.4 28% Value Change 2% Available 757 619 22% Closed 377 312 21% $3-1k Months Supply 6. 6. 1% Available 72 31 132% Closed 81 6 35% $1-2k Months Supply 2.7 1.6 72% Available 74 57 3% Closed 51 37 38% $2k+ Months Supply 4.4 4.6-6% Value Change 15% While most markets continue to have shrinking inventory levels compared to prior years, the Detroit market have been growing. It was up 14% compared to July 1st of last year. Sales have been about level with last year, but Detroit single family home values have jumped 26%. The average sale price moved from $45k to $57k and price per square foot skipped from $34 to $43. There continues to be a shortage of quality available homes. When nice new listings hit the market, buyers jump on them. Half of this year s closed sales were pending within 1 days of the list date. Forty percent of the single family homes sold at or above asking price. Detroit s entry level market has been shrinking with sales down 22%, while the upper-end market continues to expand, yet a staggering 47% of Detroit sales were priced under $3k.
Detroit Condos/Lofts 166 +8% from last month 55 +34% from last month 187 +25% from last year $255K +24% from last year $213 +49% from last year 5 4 3 2 1 $26 $22 $18 $14 $1 $6 Available 166 124 34% Closed 11 77 31% All Months Supply 4.9 4.8 2% Avg. Sale Price $252K $215K 17% $ Vol (million) 25 17 54% Available 29 19 53% Closed 12 22-45% $1-1k Months Supply 7.3 2.6 18% Value Change 333% Available 13 11 18% Closed 27 2 35% $1-2k Months Supply 1.4 1.7-12% Value Change 19% Available 55 55 % Closed 47 3 57% $2-4k Months Supply 3.5 5.5-36% Value Change 1% Available 69 39 77% Closed 15 5 2% $4k+ Months Supply 13.8 23.4-41% Value Change -21% Both the number of sales and average price for Detroit condos and lofts were up 25% year-to-date. Despite developers working to get more new high-end units online, buyers continue to line up and look for inside info so that they can be the first to have a shot at scoring a great deal. Forty-seven percent of this year s over- $4k closed sales were pending within 1 days of listing. Fifteen of the 3 condos sold for at least asking price or above. Finally, the average price per square foot for these luxury units was $335.
Grosse Pointe 191 +1% from last month 81-15% from last month 394-7% from last year $352K +1% from last year $16 +5% from last year Available 191 19 1% Closed 236 259-9% All Months Supply 2.4 2.2 1% Avg. Sale Price $372K $361K 3% $ Vol (million) 88 94-6% Available 12 22-45% Closed 27 52-48% $1-2k Months Supply 1.3 1.3 5% Value Change 1% Available 53 48 1% Closed 18 16 2% $2-35k Months Supply 1.5 1.4 8% Value Change % Available 77 73 5% Closed 9 86 5% $35-7k Months Supply 2.6 2.5 1% Value Change 11% Available 49 47 4% Closed 11 15-27% $7k+ Months Supply 13.4 9.4 42% Value Change 8% Available inventory rose through the 2nd quarter and continues to be about level with last year. Sales were climbing from March through May, but fell off a bit in June. June new pendings were also down. That lack of pendings will negatively impact closed sales in subsequent months. Year-to-date, closed sales were down 7%, and average sale price was up 5% compared to last year. The rise in average sale price was mostly due to a change in the mix of what sold. Sales in the entry price range (under $2k) were down 48% and price per square foot was only up 1%. While last year s Grosse Pointe values rose twice as much as other Southeast Michigan markets (12% vs. 6%), this year GP values have been relatively flat while surrounding markets continue their steady 6% climb.
Downriver 539 no change from last month 463-3% from last month 1,856-6% from last year $134K +11% from last year $1 +12% from last year Available 539 712-24% Closed 1,57 1,19-5% All Months Supply 1.5 1.9-21% Avg. Sale Price $138K $127K 9% $ Vol (million) 147 141 4% Available 15 13-19% Closed 194 245-21% $1-75k Months Supply 1.6 1.6 2% Value Change 7% Available 159 169-6% Closed 331 383-14% $75-125k Months Supply 1.4 1.3 9% Value Change 4% Available 188 246-24% Closed 44 413 7% $125-25k Months Supply 1.3 1.8-28% Available 87 168-48% Closed 92 68 35% $25k+ Months Supply 2.8 7.4-62% Value Change 3% Available listings have been leveling off from previous months and have been down about 5% from last year. Closed sales have been rising through the spring season, but have been down 6% from last year. Downriver values have been doing well. The $134k average sale price was up $13k from last year and average price per square foot was up 12%. Buyers continue to be hungry and are jumping on new listings with multiple offers. Forty-seven percent of this year s closed sales were pending within 1 days. 46% of closed sales have been at or above asking price. The entry level market continues to dry up due to a lack of lower-priced listings while the upper-end markets continue to expand.
Livingston County 634 +14% from last month 311-1% from last month 1,25-12% from last year $29K +6% from last year $149 +7% from last year 35 3 25 2 15 1 5 $18 $16 $14 $12 $1 $8 Available 634 729-13% Closed 779 871-11% All Months Supply 2.4 2.5-3% Avg. Sale Price 299k 284k 5% $ Vol (million) 233 248-6% Available 67 94-29% Closed 138 187-26% $1-2k Months Supply 1.5 1.5-3% Available 187 221-15% Closed 332 393-16% $2-3k Months Supply 1.7 1.7 % Available 236 269-12% Closed 262 242 8% $3-5k Months Supply 2.7 3.3-19% Available 144 145-1% Closed 47 49-4% $5k+ Months Supply 9.2 8.9 4% Value Change 4% Available listings continue to rise. They were up 14% from the previous month, though still down 1% compared to the same time last year. Closed sales had been climbing through the spring months but flattened out in June. New pendings (an indicator of future closed business) also flattened out. Year-to-date, closed sales were down 8%. Most of that drop in took place in the entry and lower mid-level markets. There where 45 fewer sales under $2k and 57 fewer between $2k and $3k. The $3-$5k price range was the only one to expand its sales. Buyers continue to pounce on and compete for the best new move-in-ready listings. Forty-six percent of this year s closed sales were pending within 1 days. Forty-eight percent of closed sales have sold at or above full asking price.
St. Clair County 511 +19% from last month 241-4% from last month 99-4% from last year $175K +12% from last year $17 +11% from last year 3 25 2 15 1 5 $12 $11 $1 $9 $8 Available 511 546-6% Closed 577 618-7% All Months Supply 2.7 2.7 % Avg. Sale Price $185K $163K 14% $ Vol (million) 17 11 6% Available 86 17-2% Closed 122 186-34% $1-1k Months Supply 2.1 1.7 23% Available 13 182-29% Closed 255 254 % $1-2k Months Supply 1.5 2.1-29% Available 221 179 23% Closed 174 158 1% $2-4k Months Supply 3.8 3.4 12% Value Change 7% Available 74 78-5% Closed 26 2 3% $4k+ Months Supply 8.5 11.7-27% Value Change -2% While available inventory has been climbing from previous months, heading into July it was still down 7% compared to last year. Most of the shortage has been in the entry and lower-mid price ranges. In the 2nd quarter, the number of entry-level (under $1k) homes dropped by 2 units and the $1k to $2k price range dropped by 52 sales. These shortages have been challenging many first time buyers who have been looking for affordable housing. The upperend markets have been expanding. Year-to-date, sales were down 4% but the $175k average sale price was up 12% compared to last year s $156k average. Sixty-eight percent of St. Clair County s closed sales this year were pending (under contract) within 1 days of listing. Forty-one percent of this year s sales have sold at or above full asking price. In all price ranges, buyers have been jumping on the best move-in-ready listings as soon as they hit the market.