Condo prices rise 0.8% as 30-year rates hit 7.4%

The national average interest rate for a 30-year fixed-rate mortgage rose to 7.4% this month, the highest level in three years. This increase coincides with a slight uptick in condominium prices in the Downriver area. According to Realcomp data, the median selling price for condos in the region reached $186,500 through September. That figure is 0.8% higher than the same period last year.

Kent McCroskey and his wife, Renee, recently navigated this shifting market. After a four-year search, they purchased a brick ranch condominium in New Boston. The couple worked with agents Doris LaBeau and Tom Hines of ReMax Masters in Flat Rock. They submitted a final and best offer of $266,000 to secure the home in the Hawthorne Woods subdivision. That price exceeded the $255,000 asking price.

Tom Hines noted that the couple had to compete with other bidders to close the deal. He described the buyers as smart and patient. The new home features a backyard leading to a wooded area, a fireplace, and a large deck. The McCroskeys prioritized a finished basement with a bathroom and kitchenette to accommodate visiting grandchildren. McCroskey reported that the grandchildren ran around the house and rolled on the floor, indicating their approval of the space.

The condo market in the Downriver remained active despite the high interest rates. Realcomp reported 285 closed condo sales through September, a decrease of five units compared to the year-earlier period. The average time on market until sale was 31 days, down slightly from 32 days a year ago. However, sales accelerated in September, with an average of 25 days on market compared to 41 days in September of last year.

The broader real estate market in the Downriver showed mixed results. The ReMax Housing Report indicated that September home sales totaled 300, an 18.9% drop from the 370 sales recorded in the same month last year. The median sales price for all homes declined 0.4% to $225,500. Jeanette Schneider of ReMax of Southeastern Michigan stated that affordability remains a primary driver for buyers. She noted that rising mortgage rates may force buyers with tighter budgets to adjust their price ranges and become more selective.

Inventory levels in Metro Detroit increased in September. Realcomp data shows that housing stock grew 3.1% from August to reach 30,295 homes. Karen Kage, CEO of Realcomp II Ltd, said more than 14,000 new listings entered the market in September. She observed that buyers benefited from a larger selection of homes while median sale prices stayed strong. The data also shows that total closed sales for all homes in the Downriver through September reached 2,564, a 2.4% decrease from the previous year.

Brownstown Township recorded the largest year-to-date increase in sales volume among Downriver communities. Sales there rose 27.9% to 188 units. Median home prices in the Downriver area rose 4.6% in September to $215,000. Ecorse saw the largest percentage increase in median prices, jumping 12.6% to $94,000. Gibraltar followed with a 10.2% increase to $270,000.