Temporary problems in the mortgage market are expected to free some pent-up demand, but disrupted existing-home sales and distorted prices on sales closed in September, according to the National Association of Realtors®.  Even so, prices continued to rise in some area.  Because of this and other factors, total existing home sales fell 8% and are 19% below the level that they were in September 2006.

Lawrence Yun, NAR senior economist, said the decline is understandable.  “Mortgage problems were peaking back in August when many of the September closings were being negotiated . . . the good news is that mortgage availability has markedly improved in recent weeks . . .”

Let’s take a look at the Metro Detroit October sales statistics to see if this trend held true:

Wayne County continues to see a downward spiral in sale prices.  The average sales price and median sales price dropped dramatically this October when compared with October 2006 - 27% and 50%, respectivel.  Meanwhile, however the market times remained about the same as last year.

Oakland County market activity continued to follow the same trend as Wayne county in October.  Although the highest sales price was $2.25M more than it was last October, the average sale price decreased 21% in October 2007 from October 2006 while the median price dropped 15%.  Market times were also similar, with only a 4 day increase.