A handful of downstream communities bucked a trend of slowing home sales in April, punctuated by increases in Allen Park, Grosse Ile, Taylor and – notably – Melvindale.
The “small town with a big heart” and some 10,300 residents posted eye-catching results – outperforming the Downstream region in terms of percentage growth in closures and median price.
For the second time in three months, the Melvindale market saw double-digit percentage gains in closes and prices. Compared to April 2021, Melvindale:
• Showed a 12.5% increase in closings (9), according to Realcomp II Ltd., Michigan’s largest multiple listings service. Sales closed at 12 Melvindale homes in February, down from five the previous month.
• Realcomp said the median price of a home in Melvindale in April was $129,000, a 15.2% increase from the previous month. In February, the median price reached $130,000.
In the final days of an ever-changing spring selling season, the real estate market is adjusting to tight inventory, rising interest rates, competitive buyers and an unstable economy.
“With the traditional summer selling season approaching, we continue to monitor, in particular, how inventory levels are affected,” said Karen Kage, Managing Director of Realcomp II Ltd. “More listings available would be a positive thing for people looking to buy a new home amid fierce competition.
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The entire Downriver area in April saw a 13.9% drop in total sales (334 from 388 in April a year earlier), Realcomp said. The median price of a downstream home rose 7.6% to $170,000.
Southeast Michigan’s Re-Max said downstream closures fell by 50 in April, to 276, from the previous April.
Realcomp said the Downriver area ended April with 325 homes listed for sale, up from 339 a year earlier.
Jeanette Schneider, president of Re/Max of Southeast Michigan, said rising interest rates are “affecting some buyers, especially first-time buyers who may have to adjust the purchase price of the location to consider their budget.
Real estate professionals have attributed Melvindale’s momentum to growing awareness of the city’s affordable housing for first-time rent-weary buyers and its convenient access to Detroit and Downriver at a time of rising housing prices. ‘essence.
“For some first-time home buyers, Melvindale is a tipping point that makes buying a better decision than renting – for affordability and appreciation,” said Tracey Solomon, realtor at Re-Max. Masters at Flat Rock.
Rae Guajardo of Re-Max Masters said Melvindale’s easy access to I-75 and I-94 is appealing to home shoppers looking for a convenient route to jobs in Detroit as l gasoline continue to rise.
Guajardo, a five-year real estate veteran, said proven emergency services and significant street improvements in Melvindale add to the town’s growing appeal.
Most months, less than 10 homes are sold in Melvindale’s 2.75 square miles. Among the highest in the past two years, according to Re-Max: 14 in September 2020 and 12 in December 2021.
The Allen Park market in April showed a 19.4% increase in April – to 43 – from the month a year earlier. The median price jumped 9.2% to $190,000, Realcomp said.
Other April winners reported by Realcomp:
• Grosse Île posted a 31.3% increase in closings, to 21, and a median price increase of 10.9%, to $390,000.
• Taylor’s closes rose 12.5%, to 63, and a 16.3% jump in median price, to $146,000.
Dan Berry of Four Seasons Realty in Trenton said the downstream area “remains pretty consistent” and reported 345 pending sales at the end of April, compared to 339 a year ago.
• The median price for a Downriver condo in April was $170,000, up from $158,000 a year earlier, Realcomp said. During the first four months of the year, the median price of a condo was $143,000, a 1.4% increase over the prior year period.
• The inventory of homes available for sale fell in April compared to the previous month. Realcomp said the month ended with 325 homes for sale, up from 339 a year earlier.