This analysis aims to evaluate the impact of the shut-down on the Detroit real estate market and more generally assess trends in the market. To accomplish this, we’ve analyzed sales data for the City of Detroit at $250K and up, looking at residential (single-family) and condominium data separately.

We intend to incorporate new data each month to continue to track trends in the market as they happen. With property showings prohibited from March 23 – May 7, the data for June and July will be very telling!

If you have a market that you’d like us to dig into for you, please send us a message.

MARKET ACTIVITY

Closed sales appear to be leveling out in May after declining during the shut-down in March and April.

While sales decreases month-over-month for 2020 are slight, the year-over-year comparison shows a more significant drop over what we would expect seasonally.

However, with increases in pending sales (11) and new listings (38) in May for the condo market, we expect to see closed condo sales follow suit and begin to bounce back in June.

Single-family residential sales in Detroit ($250K+) appear to be lagging somewhat compared to the condo market.

On the residential side, new listings have increased significantly in May; from a four-year low in April to match a four-year high in May.

And while closed sales appear to have bottomed out, a continued decrease in pending residential sales through March (11), April (9), and May (7) seems to indicate a slower recovery for the residential market compared to the condo market.

This outpaced recovery, coupled with a historically significant increase in new sales could signal an impending saturation on the supply-side of Detroit’s single-family market. While it’s too early to say for certain, we’ll definitely be looking for more clarity here next month.

Year-over-year comparison of values seems to indicate that both the property values in both the residential and condo markets are in line with where they’ve been over the last few years.