Macomb County housing prices spike by 46.2 percent
By Molly Tippen, The Macomb Daily
POSTED: 11/18/13, 10:42 AM EST | UPDATED: 1 DAY AGO
Sellers in Macomb County continued to enjoy the upper hand in Southeast Michigan’s real estate market in October, with median home prices increasing by 46.2 percent over the same period in 2012.
The prices – which have been driven upward by dwindling inventory levels, still-low interest rates and a recovering local economy – increased from $82,000 in October 2012 to $119,900 this year, according to a report released by Farmington Hills-based Realcomp, which measures real estate activity in Southeast Michigan.
The increase is indicative of a sustained trend in Macomb’s real estate market, which has been growing steadily since early 2012, said Karen Kage, president of Realcomp.
“In Macomb, median prices are back up to 2008 levels, so from that perspective, things are better than they have been for five years,” she said. “It’s exciting news for people that are interested in placing their home on the market.”
Macomb’s prices, however, have not increased at the same rate as those in Oakland County, where median prices have reached 2007 levels, Kage said.
Although sales prices increased, the number of sales in the county was virtually flat. According to the report, sales increased by only .9 percent; 1,078 homes were sold in October 2013 versus 1,068 the previous year.
David Tuscany, a realtor with Re/Max Suburban in Sterling Heights, said there’s a natural drop off in sales in the fall that was punctuated by the government shutdown.
“It seems that our call volume is steady, but the shutdown slowed things down a little bit,” he said. “We didn’t have some of the things like down payment assistance and in some cases FHA mortgages, so financing was an issue for some buyers.
Inventory levels are still a big issue for buyers, said Tuscany.
“I think that right now, that’s the biggest challenge,” he said.
Sales by the numbers
Last month, sales activity in Macomb outpaced those recorded in Wayne County, which saw a 4.6 percent decrease in the number of homes that changed ownership. However, Oakland County homes sales increased by a brisk 10.8 percent.
But median sales in prices in Macomb County outpaced increases in Wayne and Oakland. In Wayne, sale prices increased 43.6 percent, from $52,225 in October 2012 to $75,000 in this year. Oakland County’s median prices increased from $147,000 to $174,500 – an increase of 18.7 percent.
Foreclosure sales in Macomb decreased by 32.3 percent, from 345 in October 2013 to 234 in October 2012, according to the Realcomp report.
The county’s inventory have decreased as well, meaning that a combination of limited availability and still-low interest rates are encouraging people buy and sell, said Tuscany.
“We are seeing people that are getting out-bid on properties,” he said. “The best advice I can give to sellers at this time is to make sure their home is priced right.”
According to Realcomp, listing levels have decreased by 10.9 percent in October, with 2,929 listings in October 2012 versus 3,287 in October 2013.
A badly-needed move
Although the fact that sellers stand a chance of getting a decent price for a home in today’s environment than they did three of four years ago, and interest rates are still low, practical matters are still driving sellers and buyers into the market.
Paul Hornung, who recently sold his home in Sterling Heights in favor of a colonial in Shelby Township, said his growing family spurred he and wife, Kimberly, to look for a new home.
“We were living in a house that was 920 square feet with three daughters,” he said. “Obviously, we need a little more space.”
To meet that end, the Hornungs looked at four houses in Macomb County before settling on a 2.5 bath, four-bedroom home near the Van Dyke-24 Mile Road corridor.
“When we walked into this house, we knew it was the one,” he said. “We weren’t in a rush to buy a home, but it turned out to be a good time to buy.”
Another big selling point for the Hornungs was the fact that the new home is close to Paul Hornung’s family.
“My daughters will go to the same elementary school and middle school that I went to, which is nice,” he said. “We’re really happy with our decision.”
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