Dearborn, Michigan has gained a reputation as a welcoming community with a strong sense of family, friends, and faith. This has led to a growing real estate market and a limited inventory of homes for sale. Mohamad Fares, who moved from New York to Dearborn three years ago, attests to the appeal of the city. He now works in real estate, helping Middle Eastern clients who want to live close to their relatives and friends in Dearborn.
In June, the inventory of homes for sale in Dearborn decreased by 54% compared to the previous year, while the median price increased by 4% to $254,900. Similarly, Dearborn Heights experienced a 46.8% decrease in homes for sale and a 6% increase in the median sales price.
Real estate professionals attribute the tight inventory in Dearborn to factors such as higher mortgage rates, economic uncertainty, a lack of new home construction, and hesitant sellers. Many homeowners are not looking to move up because they have low interest rates on their current homes. This has resulted in fewer listings, impacting the number of available homes for buyers.
Compared to the first six months of the previous year, the number of home sales in Dearborn has declined by 27.9% in the first half of this year. Dearborn Heights also saw a 13.3% decrease in sales during the same period.
Despite these challenges, Dearborn’s unique qualities continue to attract potential buyers. The city’s affordable housing prices make it particularly appealing for those coming from high-cost markets like New York City. Additionally, the large Middle Eastern population in Dearborn draws buyers with cultural and religious ties to the area.
Dearborn’s population has grown by nearly 10% over the past decade, in contrast to the overall stagnation of Michigan’s population. Mayor Abdullah Hammoud has emphasized the city’s diversity and quality of life as the key to its success and growth. Dearborn offers various family-friendly events and initiatives, which contribute to its small-town charm despite having a population of 110,000.
Real estate agents in Dearborn expect the tight inventory to continue shaping the residential sales market in the coming months. The average days on market from listing to contract signing was 18 days in May and 12 days in June.
As of June, Dearborn has seen a 31.5% decline in new listings compared to the previous year, while Dearborn Heights experienced a 24.4% decrease. The median sales price in Dearborn increased by 1.3% to $230,000, while Dearborn Heights saw a 7.9% increase to $178,000.
Sources:
– Realcomp’s local market update
– Interview with Mohamad Fares and Mayor Abdullah Hammoud