Metro home sales still lag 2006
Metro Detroit figures up 15% from April, but fall from a year ago.
Nathan Hurst / The Detroit News
Home sales in Metro Detroit bounced up from April to May but still lagged sales of a year ago, when the local housing market started feeling the effects of the state's prolonged auto industry slump.
With the start of the summer home-selling season, sales rose by more than 15 percent from April to May in the region encompassing Wayne, Oakland, Macomb, Livingston and St. Clair counties, according to data released Wednesday by Realcomp, the Farmington Hills-based multiple listing service.
Wayne County was a bright spot for the month, showing increases in sales month-over-month and year-over-year.
But experts say the market is still very soft, down 8.6 percent from May 2006, and there's still plenty of discounted homes for buyers to choose from, many with incentives such as cash offers toward closing costs.
"We're fighting some headwinds," said Bob Walters, chief economist at Livonia-based Rock Financial mortgage firm. "This is definitely the buying season, and we're seeing some decent signs, but we still have struggles ahead."
Walters said a number of factors are keeping the ball in the home buyer's court, including continued jitters about job losses at major area employers and strains caused by subprime mortgage deals gone bad, a nationwide problem that came to a head earlier this year.
Macomb County saw the largest April-to-May increase in home sales with a 28.7 percent jump, while Livingston County showed a 7.3 percent drop.
Livingston also took the bottom spot for year-over-year sales, with 23.5 percent less homes selling this May than in May last year.
For agents like Tyrone Bennett of ERA Country Ridge Realty in Livonia, this time of year represents a typical pick up in sales, in large part due to improved weather.
But Bennett said he's seeing a notably marked increase in buyer interest that isn't just due to warmer temperatures.
"People are looking for a good deal, and sellers are bringing money to the table," he said. "Some sellers are bringing $10,000 to $20,000 to the table to get a sale closed."
Interest has picked up enough, he said, that he's considering hiring an additional assistant in his office to handle the increased traffic of buyers searching for a bargain.
And in large part, he said, they're finding them.
Walters said the best deals will continue to be found in areas hardest hit by recent layoffs, while homes near prime waterfronts will see quicker sales at not-so-reduced prices.
"We still have to contend with the job losses," he said. "I don't see a rosy future. It's more like we're grinding sideways than anything."
Metro Detroit figures up 15% from April, but fall from a year ago.
Nathan Hurst / The Detroit News
Home sales in Metro Detroit bounced up from April to May but still lagged sales of a year ago, when the local housing market started feeling the effects of the state's prolonged auto industry slump.
With the start of the summer home-selling season, sales rose by more than 15 percent from April to May in the region encompassing Wayne, Oakland, Macomb, Livingston and St. Clair counties, according to data released Wednesday by Realcomp, the Farmington Hills-based multiple listing service.
Wayne County was a bright spot for the month, showing increases in sales month-over-month and year-over-year.
But experts say the market is still very soft, down 8.6 percent from May 2006, and there's still plenty of discounted homes for buyers to choose from, many with incentives such as cash offers toward closing costs.
"We're fighting some headwinds," said Bob Walters, chief economist at Livonia-based Rock Financial mortgage firm. "This is definitely the buying season, and we're seeing some decent signs, but we still have struggles ahead."
Walters said a number of factors are keeping the ball in the home buyer's court, including continued jitters about job losses at major area employers and strains caused by subprime mortgage deals gone bad, a nationwide problem that came to a head earlier this year.
Macomb County saw the largest April-to-May increase in home sales with a 28.7 percent jump, while Livingston County showed a 7.3 percent drop.
Livingston also took the bottom spot for year-over-year sales, with 23.5 percent less homes selling this May than in May last year.
For agents like Tyrone Bennett of ERA Country Ridge Realty in Livonia, this time of year represents a typical pick up in sales, in large part due to improved weather.
But Bennett said he's seeing a notably marked increase in buyer interest that isn't just due to warmer temperatures.
"People are looking for a good deal, and sellers are bringing money to the table," he said. "Some sellers are bringing $10,000 to $20,000 to the table to get a sale closed."
Interest has picked up enough, he said, that he's considering hiring an additional assistant in his office to handle the increased traffic of buyers searching for a bargain.
And in large part, he said, they're finding them.
Walters said the best deals will continue to be found in areas hardest hit by recent layoffs, while homes near prime waterfronts will see quicker sales at not-so-reduced prices.
"We still have to contend with the job losses," he said. "I don't see a rosy future. It's more like we're grinding sideways than anything."
No comments:
Post a Comment