Detroit Property Values Climb to $85,000: Surrounding Cities Showcase Diverse Market Trajectories in April 2024

Detroit’s real estate market has experienced an overall increase in property values and sale prices, despite fluctuations and potential supply constrictions.

authorWritten by Manuel MartinezMay 2, 2024

Summary of Key Real Estate Trends in Detroit

The real estate landscape in Detroit has seen growth in the average value of properties within the span of a year—from an average value of around $80,000 in May 2023 to approximately $85,000 by April 2024.

Real Estate Report Detroit MI May 2024 Price Per Sq Ft
Real Estate Report Detroit MI May 2024 Price Per Sq Ft

Even more remarkable is the upward movement in the average sale price, which experienced an increase from roughly $58,518 in May 2023 to around $77,157 by January 2024, although this momentum saw a slight downturn in the following months.

A parallel trend is observed in the metric of average sale price per square foot, which escalated from around $50 in May 2023 to $65 by January 2024, only to witness a subsequent dip. These figures tell the story of a market that, while experiencing overall growth, is also subject to normal fluctuations.

Additionally, Detroit’s real estate very possibly faces a tightening of supply, hinted by the descending property count, which dropped from May 2023 to April 2024. This is coupled with a decrease in the property sold count from July 2023 onwards, which could signify a lessening in sales velocity.

When considering the trends from nearby cities, we observe diverse trajectories. Hamtramck’s average values soared, peaking at $192,400 by April 2024. In contrast, Highland Park displayed more volatility, with peaks and troughs capping at an average value of $84,825 in March 2024. River Rouge and Melvindale both showed ascending trends in their average values. Dearborn, illustrating a robust market, saw its average values escalate, reaching the highest average of $274,900 by April 2024.

Each of these trends represents significant market movements, reflecting the ever-evolving face of real estate in Detroit and its surrounding areas.

A Snapshot: Real Estate Market in Detroit, April 2024

Housing Market Summary for Detroit, MI

May 2023 April 2024 Change
Median Listing Price $79,998.2 $75,447.082 -5.69%
Median Sold Price $58,517.768 $75,447.082 28.93%
Homes For Sale 1,179 1,488 26.21%
Homes Sold 12,006 6,031 -49.77%

Average property value in Denver sits around of $85k, hinting at a stable market with potential for return on investments. The average sale price stood at $75,447, which, while lower than the average value, illustrates the negotiated gap between listing prices and sale prices. Moreover, the average sale price per square foot of $63 indicates the price density of real estate in Detroit, offering insights into the overall affordability of the area.

The volume of real estate also sheds light on market activity. With a property count of 1,488, the inventory levels seem healthy, although a comparison with previous months suggests a possible constriction. Conversely, the property sold count of 6,031 indicates a significant number of transactions, validating the city’s active market status despite a downward trend from the previous months.

Comparing Real Estate Trends in Nearby Cities

Next, let’s broaden the view to look at Wayne County’s regional trends:

  • Hamtramck stands out with an average property value of $192,400, hinting at a possibly more upscale or rejuvenated market area. This value leap is supported by an average sale price of $155,089 and a substantial average sale price per square foot of $113, indicating a heightened demand for real estate in the city.
  • Highland Park‘s average value by April 2024 sits at $77,700, with an average sale price of $50,657. This more considerable discrepancy might be symptomatic of a buyer’s market wherein property values are subject to more aggressive negotiation, underscored by a lower average sale price per square foot of $36.
  • River Rouge displays an average property value of $90,000, with transactions closing at an average sale price of $70,213 and an average sale price per square foot of $64. These numbers suggest a balanced market, where buyers are finding value without drastic price surges.
  • The small city of Melvindale exhibits a consistent growth with an average value of $145,900, aligning with an average sale price of $125,451 and a remarkable average sale price per square foot of $126 – a testament to the city’s desirability and potentially promising real estate market.
  • Dearborn emerges as a standout locale with an impressive average value of $274,900, coupled with an average sale price of $226,274 and a notably high average sale price per square foot of $170. This presents Dearborn as the premium market in the region, boasting robust property values and a strong market demand.

It is clear from the data that understanding local real estate trends demands a multi-dimensional analysis, factoring in average values, sale prices, per square foot pricing, and property volumes. Each aspect intertwines to paint a comprehensive picture of a region’s real estate health. The Detroit market, along with its neighboring cities, reflects a nuanced blend of opportunities and outcomes for buyers, sellers, and investors alike.

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