HOUSING AND DEVELOPMENT: Area home sales mixed
Like U.S., Detroit rose but Wayne, Oakland didn't
BY MARGARITA BAUZA
FREE PRESS BUSINESS WRITER
December 29, 2006
As U.S. sales of existing homes showed an uptick in figures released Thursday, local sales in October increased in Detroit but fell in Dearborn and western Wayne and Oakland counties when compared to the same period a year ago. Specifically:
• 628 homes sold in Detroit in October compared with 594 in October 2005.
• 175 homes sold in Dearborn in October compared with 190 in October 2005.
• 716 homes sold in western Wayne and Oakland counties in October compared with 877 in October 2005.
National figures for existing home sales released Thursday showed that sales rose unexpectedly in November, as prices fell for the fourth month in a row, adding to evidence that the housing slowdown is ending.
U.S. purchases increased 0.6% last month, to an annual rate of 6.28 million, after they rose 0.5% in October. That marked the first back-to-back gains in monthly sales since March 2005, the National Association of Realtors said Thursday in Washington.
The report, coming on top of a bigger-than-expected jump in new-home sales reported Wednesday, suggests housing might be less of a drag on economic growth in 2007. That's in line with the Federal Reserve's forecast for growth at a moderate pace in the new year.
"It appears we've hit bottom," David Lereah, chief economist of the Realtors' group, said Thursday at a briefing in Washington.
Sales of existing homes, which account for about 85% of the U.S. housing market, are recorded when a contract is closed. New home sales, recorded when a contract is signed, are considered a more timely barometer of the housing market.
The number of previously owned homes for sale decreased 1% last month, to 3.82 million. That represented a 7.3 month supply at the current sales pace, down from 7.4 months in October.
The median price of an existing home in November fell 3.1% from a year ago, to $218,000, the fourth consecutive monthly decline.
State sales decrease
By October of this year -- the latest figures available from the Michigan Association of Realtors -- 16,482 fewer houses had sold in the state compared with October 2005.
In Western Wayne and Oakland counties 10-month sales fell from 9,495 in October of 2005 to 7,582 in October 2006, a drop of 20%. November figures are not available for Detroit-area markets because the statistics are reported quarterly.
Sam Baki, president of the Western Wayne Oakland Association of Realtors, says he expects the local sales numbers for November and December to be up. "There's a lot of activity right now," said Baki, a Realtor at Keller Williams in Northville.
He said buyers appear more comfortable with housing prices than they did a year ago, when both buyers and sellers were adjusting their expectations about pricing and sales.
"After the election especially, it picked up a little," Baki said. "People understand the market a little more, and anecdotally, there's been more activity in November and December. People are looking, making offers and showing houses."
David Elya, president elect of the Metropolitan Consolidated Association of Realtors and an agent with Realty Executives Group in Shelby Township, said he believes the Detroit-area market will see a lot of activity this spring.
"There are plenty of buyers that are waiting for good news," he said. "There's ample supply and good value out there. My Web activity is up, my phone calls have been up."
Like U.S., Detroit rose but Wayne, Oakland didn't
BY MARGARITA BAUZA
FREE PRESS BUSINESS WRITER
December 29, 2006
As U.S. sales of existing homes showed an uptick in figures released Thursday, local sales in October increased in Detroit but fell in Dearborn and western Wayne and Oakland counties when compared to the same period a year ago. Specifically:
• 628 homes sold in Detroit in October compared with 594 in October 2005.
• 175 homes sold in Dearborn in October compared with 190 in October 2005.
• 716 homes sold in western Wayne and Oakland counties in October compared with 877 in October 2005.
National figures for existing home sales released Thursday showed that sales rose unexpectedly in November, as prices fell for the fourth month in a row, adding to evidence that the housing slowdown is ending.
U.S. purchases increased 0.6% last month, to an annual rate of 6.28 million, after they rose 0.5% in October. That marked the first back-to-back gains in monthly sales since March 2005, the National Association of Realtors said Thursday in Washington.
The report, coming on top of a bigger-than-expected jump in new-home sales reported Wednesday, suggests housing might be less of a drag on economic growth in 2007. That's in line with the Federal Reserve's forecast for growth at a moderate pace in the new year.
"It appears we've hit bottom," David Lereah, chief economist of the Realtors' group, said Thursday at a briefing in Washington.
Sales of existing homes, which account for about 85% of the U.S. housing market, are recorded when a contract is closed. New home sales, recorded when a contract is signed, are considered a more timely barometer of the housing market.
The number of previously owned homes for sale decreased 1% last month, to 3.82 million. That represented a 7.3 month supply at the current sales pace, down from 7.4 months in October.
The median price of an existing home in November fell 3.1% from a year ago, to $218,000, the fourth consecutive monthly decline.
State sales decrease
By October of this year -- the latest figures available from the Michigan Association of Realtors -- 16,482 fewer houses had sold in the state compared with October 2005.
In Western Wayne and Oakland counties 10-month sales fell from 9,495 in October of 2005 to 7,582 in October 2006, a drop of 20%. November figures are not available for Detroit-area markets because the statistics are reported quarterly.
Sam Baki, president of the Western Wayne Oakland Association of Realtors, says he expects the local sales numbers for November and December to be up. "There's a lot of activity right now," said Baki, a Realtor at Keller Williams in Northville.
He said buyers appear more comfortable with housing prices than they did a year ago, when both buyers and sellers were adjusting their expectations about pricing and sales.
"After the election especially, it picked up a little," Baki said. "People understand the market a little more, and anecdotally, there's been more activity in November and December. People are looking, making offers and showing houses."
David Elya, president elect of the Metropolitan Consolidated Association of Realtors and an agent with Realty Executives Group in Shelby Township, said he believes the Detroit-area market will see a lot of activity this spring.
"There are plenty of buyers that are waiting for good news," he said. "There's ample supply and good value out there. My Web activity is up, my phone calls have been up."
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