Housing Market Update May 2022 - Royal Oak Michigan

This is the Housing Market Update for Royal Oak Michigan presented by Mitch Peterek. This report is a comparison of the zip codes 48067 and 48073.

Inventory

The number of homes for sale in Royal Oak Michigan has reached all time lows when calculating on a 12 month rolling total. We expect inventory levels to start to rise as we enter peak home sales activity season this summer.

Days on Market

Market Times continue to be at record pace. Expect this number to stay low through the coming months as spring pending sales start to close. Market times should begin to rise later in the summer if listing inventory starts to buildup.

Months Supply of Inventory

Months supply of inventory is the number of months it would take to sell all of the homes i n the market if we were to receive no new inventory. Right now our market place is sitting just above 1 month supply.

Most experts expect to see home price appreciation when below 6 months of supply. If you look at the chart below we have been in that range for the past 10 years.

Values

Average sales price has rose consistently over the past ten years. The most recent spike in values can be seen in the past two years which is due to the shortage of inventory. Expect values to continue to rise but the pace should slow.

Currently the average sale price is selling for 104% above the last list price.

Showing Activity

Showing activity is currently at peak levels last comparable to 2018.

76% of showings in this market are between $200k-$400k

Market Summary

Expect activity to slow as rising cost begin to creep up on buyers. The combination of rising rates and high inflation rates on other everyday items will impact buyers ability to qualify to purchase homes at todays elevated levels. Values will continue to rise so long as inventory remains tight.