Report Shows Increase in Detroit Home Sales

By Veronica Grecu, Associate Editor Detroit region’s home sales rose 4.3 percent in May 2011 according to recent data released by MLS Realcomp II Ltd., a real estate information company based in Farmington Hills. The report quoted by Crain’s Detroit Business [...]

Detroit region’s home sales rose 4.3 percent in May 2011 according to recent data released by MLS Realcomp II Ltd., a real estate information company based in Farmington Hills. The report quoted by Crain’s Detroit Business shows that the median sale price in May was $65,000 for a house in Metro Detroit, a significant increase over $60,000, the median price for January. The number of home sales shows an increase as well, from 3,265 units sold in January to 4,528 sales in May.

However, these figures show an overall decrease as compared to May 2010. For example, the number of units sold in May 2011 represents a 4.3 percent decline from the same month last year. Also, the median price of $65,000 in May 2011 is a 13.3 percent drop from the median price in May 2010, which was $75,000. Dan Elsea, president of brokerage services firm Real Estate One, told Crain’s Detroit Business that year-over-year numbers will most probably decrease in September this year.

According to Realcomp data, the number of foreclosures in the region was 2,012 in May 2011, a 2.5 percent increase from the 1,963 foreclosures recorded in May 2010. The median price for non-foreclosed sales in Detroit rose from $12,500 in May 2010 to $13,000 in May 2011.

In other real estate news, during a Construction Outreach event the Detroit Medical Center (DMC) announced its expansion plan and a new construction project at three of its campuses—Central Detroit, Northwest Detroit and Commerce Township—with budgets ranging from $3 million to $170 million. According to www.myfoxdetroit.com, the joint venture with Vanguard Health is the largest private investment to date in Detroit’s history. The DMC project is expected to create thousands of construction jobs that would boost the city’s economy.