What we saw in May 2023

May 2023 presented an opportune moment for both buyers and sellers in the real estate market. While existing-home sales experienced a slight decline for the second consecutive month, down 3.4% nationwide, this presents an advantageous situation for buyers looking to make a purchase. With the impact of higher interest rates on buyer affordability, sales are down 23% compared to the same period last year, creating a buyer's market.

For those seeking to sell their homes, there is relief in declining sales prices, which have decreased by 1.7% nationally when compared to the previous year. However, it's important to note that more affordable markets continue to see price gains, indicating potential for sellers to make a profitable sale. In Washtenaw County, for example, new listings have decreased, creating a sense of exclusivity for buyers who can take advantage of this limited supply.

Moreover, pending sales have increased significantly for both single-family homes and townhouse/condo properties, demonstrating a strong demand in the market. This surge in pending sales, coupled with a decrease in inventory, creates an environment where homes are selling faster than ever before. In Washtenaw County, single-family homes have experienced a substantial decrease in inventory by 40.5%, while townhouse/condo homes have seen a 26.7% decrease.

Additionally, the median sales price in Washtenaw County has seen positive growth for single-family homes, with an increase of 4.3% to $438,250. Although townhouse/condo homes have experienced a decrease of 8.1% to $287,000, this presents an opportunity for buyers looking for more affordable options.

While interest rates may have fluctuated, they have influenced some buyers to step back temporarily. However, another factor affecting the lower-than-average home sales is the shortage of inventory. Current homeowners, who secured mortgages at lower interest rates, are choosing to delay their selling decisions until market conditions improve. This shortage in supply, combined with the low inventory levels heading into May, results in homes being snatched up quickly. In fact, the typical home spends just over three weeks on the market, indicating a swift and dynamic buying and selling process.

Overall, the current real estate landscape in May 2023 offered buyers the opportunity to acquire properties at more affordable prices and sellers the chance to make profitable transactions. With declining sales prices, increased pending sales, and limited inventory, now is an ideal time to enter the real estate market and take advantage of these favorable conditions.

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Meet the DMA Real Estate Team

DMA Real Estate is a team of experienced, licensed real estate agents serving the Washtenaw County, MI metro area. With a proven track record of getting results quickly and a direct line of communication at all times.