Metro Detroit house prices climbed more than 20 percent from this March compared to last March, with increases across the board, according to recently released Realcomp statistics.
Wayne County is no exception to this--showing the biggest jump with prices up 43 percent over March 2012. Additionally, the average days on market dropped by 10 days, indicating that houses are moving faster and higher prices than they were last year, Realcomp states.
Darralyn Bowers, president and CEO, ERA Bowers & Associates in Southfield noted, "the primary reason for the positive trend in home sale prices is consumer confidence. As the economy is perceived as stable, home buyers are no longer fearful.
"Demographics continue to grow new family units, first time home buyers, downsizers, upgraders, relocations, and retirees. These conditions increase demand and demand drives up values," Bowers stated. "In 2012 the amount of housing inventory still exceeded available units. Today the demand far exceeds the number of available properties on the market. This condition results in multiple offers on one property. These conditions unabated will continue to drive up values."
What does this mean for the average home buyer and average home seller? It's becoming a competitive market, she said.
"Sellers can now place their properties on the market with the conviction that there are plenty of qualified and motivated buyers."
It's also expected that more buyers will be entering the marketplace, as banks deem them eligible for financing.
In blue-collar Wayne County, housing values fell at a greater pace than nearby Oakland and Livingston counties, Bowers noted.
"The demographics played a major role in the impact of the automotive meltdown," she stated.