Pace of metro Detroit home sales slows in October

Winter is generally the slowest time of year for home sales. But the latest data suggests a modest slowdown may already be taking place across metro Detroit.

A Crain’s Detroit Business analysis of MLS data from Realcomp Ltd. II showed that home sales decreased across the region year-over-year in October from 5,344 to 5,244, or about 2 percent. Perhaps more worrisome for sellers is that homes stayed on the market 13 percent longer than last year, going from an average of 29 to 34 days.

Home prices, however, continued their yearly increase, up 8 percent from $180,000 to $194,550.

Frank Tarala, president of Realcomp’s board of governors, told Crain’s that the slowdown is likely related to a lack of inventory, particularly for more affordable starter homes. The number of homes in the region that sold for less than $100,000 decreased 15.2 percent year-over-year.

Tarala added that in recent years, “We didn’t typically see the number of units sold decline.”

In October in Detroit, the median home sale price went up 2.5 percent year-over-year to $40,950, but total homes sold decreased nearly 9 percent to 362.