The Ultimate Guide to Buying a Home in Royal Oak, MI
Thinking about buying a home in Royal Oak? Its walkable downtown, great schools, and lively community make it one of the best places to live in Metro Detroit. In this guide, we’ll cover everything from market trends to the best neighborhoods—so you can find the perfect home in Royal Oak.
Buying a home is always challenging, but in Royal Oak’s hot market, it can feel overwhelming. That’s why Jim Shaffer and Associates is ready to help you find your dream home in Royal Oak while making it an easy process, from finding homes that are on the market all the way through to the final closing thanks to our partnerships with mortgage lenders in Royal Oak, MI.
Why Buying a Home in Royal Oak, MI is a Smart Investment
Royal Oak has been a lively city for years, gaining buzz even before the COVID-19 pandemic for its vibrant downtown and thriving businesses.
Royal Oak offers a high walkability score, easy access to attractions like the Detroit Zoo, and a thriving arts scene—perfect for those who want excitement without living in Downtown Detroit.
Plus, Royal Oak is smack dab in the middle of the Woodward Corridor, allowing plenty of exploration to nearby communities like Ferndale, Madison Heights, Birmingham, and Oak Park to name a few! Discover the area and see if buying a home in Royal Oak, MI is perfect for you!
If you are looking for Royal Oak homes for sale, we have the perfect guide to help you find your dream home in the area!
What Makes Royal Oak a Great Place to Live?
High profile events year round make Royal Oak, MI the perfect place to buy your next home with help from Jim Shaffer and Associates. New residents often explore Royal Oak’s lively food and bar scene, but the city offers much more. From fairs to festivals, it’s a hub of activity during the warmer months.
-Royal Oak Farmers Market: A Saturday market offers fresh produce, while Sundays focus on antiques and flea market finds. Their website lists the special events that happen year-round.
-Outdoor Art Fair: Held in July, this juried art event features paintings, sculptures, and handmade crafts from local artisans. With over 100 booths, it offers everything from drawings and photography to clay and mixed media pieces. If you’re interested in handmade crafts, this is the place to find hidden gems.
-Woodward Dream Cruise: The world's largest one-day automotive event celebrates Michigan's car heritage, drawing nearly 1.5 million people to the Woodward Corridor each year to see classic cars from around the world. Make sure to get a spot alongside the road early to see the cars!
-Arts, Beats, and Eats: Arts, Beats & Eats is Oakland County’s biggest Labor Day festival, featuring music, food, and carnival rides. Downtown Royal Oak closes its streets for the celebration.
Want to see just listed Royal Oak homes for sale? Visit our latest listings in the area!
Royal Oak Housing Market Trends & Home Prices (2025 Update)
If you're looking for homes for sale in Royal Oak, MI, staying informed about current market conditions is essential. As of early 2025, home prices have dipped slightly, but demand is still strong.
Key Market Insights for 2025
The median sale price in Royal Oak is $329,450, reflecting a 3.0% decrease from the previous year. This dip gives buyers slightly more negotiating power. The market is still competitive, with most homes getting three offers and selling in 27 days.
Inventory has slowed, with 56 homes sold last month, an 18.8% decline compared to the same period last year. Fewer homes are selling, but well-priced ones still sell fast, averaging 33 days on the market.
The median price per square foot is $273, a 1.1% decrease from last year. While this suggests a minor price adjustment, Royal Oak remains a desirable area where homes retain strong value.
Is It a Buyer’s or Seller’s Market in Royal Oak?
While home prices have softened slightly, the market is still competitive. Buyers should move fast on desirable homes and get pre-approved for financing. Well-priced homes in popular areas still attract multiple offers.
If you're considering buying a home in Royal Oak, now may be a strategic time to enter the market before conditions shift again. A local real estate expert can help navigate pricing trends, negotiation strategies, and the best available listings.
Best Neighborhoods in Royal Oak for Homebuyers
Downtown Royal Oak – Best for Walkability & Entertainment
Looking to be a part of all the action? Downtown Royal Oak is your perfect spot. Main St. has some of the best food in Oakland County, along with unique shops and music venues, all within walking distance. Some highlights include the Detroit Zoo (which has the Polk Penguin Conservatory!!), Mark Ridley’s Comedy Castle, Jim Brady’s Royal Oak (one of the best steaks you will find), and Lily’s Seafood Grill & Brewery.
Vinsetta Park – Best for Families & Schools
Vinsetta Park, just northwest of Towar Park Subdivision, is a great choice for families moving to Royal Oak, MI. Just last year, the Royal Oak City Commission highlighted four bridges and some green space for historic preservation.
The area is close to top schools like Northwood Elementary, Royal Oak Middle School, and Royal Oak High School. The area is very walkable, with sidewalks and tree-lined streets perfect for a summer stroll.
Northwood – Best for Historic Charm & Quiet Streets
Northwood is home to some of the most structurally significant houses in Royal Oak, with many dating back to the 1920s and 1930s. If you want a historic home in Royal Oak, you'll find Tudors, Colonial-style houses, and Craftsman bungalows with porches and well-kept yards.
The area has larger lots, mature trees, and quiet, walkable streets—great for those who want a break from downtown Royal Oak's energy.
Normandy Oaks – Best for New Construction Homes
Most of Royal Oak has older homes, but Normandy Oaks offers many new builds near Downtown Royal Oak.
Many new homes in Normandy Oaks have open layouts, high ceilings, modern kitchens, and attached garages. Buyers who want Royal Oak’s city feel with modern conveniences will love Normandy Oaks.
Understanding the Costs of Buying a Home in Royal Oak
Average Home Prices & Property Taxes
As of early 2025, the Royal Oak housing market has experienced notable trends:
What Is The Average Home Price In Royal Oak, MI: Approximately $329,450, reflecting a 3.0% decrease compared to the previous year.
Median List Price: Around $351,057 as of January 31, 2025.
Median Price per Square Foot: Approximately $218, marking a 1.3% increase from the previous year.
These figures indicate a slight cooling in the market, offering potential buyers more favorable conditions.
Property Taxes in Royal Oak, MI
Property taxes in Royal Oak are influenced by both local millage rates and property values. Key details include:
Effective Property Tax Rate: Approximately 2.04%, higher than both the Michigan state median of 1.07% and the national median of 0.99%.
Calculation Method: Property taxes are determined by multiplying the property's taxable value by the local millage rate. The taxable value typically increases annually by the rate of inflation or 5%, whichever is lower. However, significant improvements or ownership transfers can lead to higher increases.
Tax Estimation: Prospective buyers can estimate their property taxes using the Royal Oak Tax Estimator, which utilizes 2024 tax rates.
Final Thoughts: Is Now the Right Time to Buy in Royal Oak?
Royal Oak has seen a massive population increase over the past decade, but right now you would still see plenty of Royal Oak for Sale signs popping up all over the city. With continued development of the area and it’s proximity to other developing areas, Royal Oak will continue to be one of the premiere destinations for movers in Oakland County.
Whether you want a lively downtown, great schools, or historic charm, Royal Oak has a neighborhood for you. Acting now could provide more negotiating power before market conditions shift again. Thinking about making Royal Oak your home? If you're buying in Royal Oak, connect with the best real estate agents in Royal Oak to find your perfect home!
Frequently Asked Questions About Buying a Home in Royal Oak, MI
1. Is Royal Oak a good place to buy a home?
Yes! Royal Oak, MI, is one of Metro Detroit’s most desirable cities due to its walkable downtown, top-rated schools, and thriving local businesses. The city offers a mix of historic homes, modern new builds, and family-friendly neighborhoods, making it a great place for both first-time buyers and seasoned homeowners.
2. What is the average home price in Royal Oak, MI?
As of 2025, the median home price in Royal Oak is $329,450, with an average price per square foot of $273. While prices have dipped slightly, the market remains competitive, with homes selling in about 27 days on average.
3. Is now a good time to buy a home in Royal Oak?
Now is a strategic time to buy in Royal Oak, as home prices have slightly cooled, giving buyers more negotiating power. However, the market remains competitive, and desirable homes still receive multiple offers. Buyers should act quickly and secure pre-approval to strengthen their offers.
4. What are the best neighborhoods in Royal Oak for homebuyers?
Some of the top neighborhoods in Royal Oak, MI, include:
Downtown Royal Oak – Best for walkability and entertainment.
Vinsetta Park – Ideal for families and top-rated schools.
Northwood – Known for historic charm and quiet streets.
Normandy Oaks – Best for new construction homes.
5. How competitive is the housing market in Royal Oak?
The Royal Oak housing market remains competitive, with homes receiving an average of three offers and going under contract in 27 days. Buyers should be prepared with a strong offer and mortgage pre-approval to secure their ideal home.
6. What are the property taxes like in Royal Oak?
The effective property tax rate in Royal Oak is approximately 2.04%, higher than the Michigan state median of 1.07%. Property taxes are based on the home’s taxable value, which can increase yearly based on inflation or ownership changes. Buyers can use the Royal Oak Tax Estimator to get an estimate for specific properties.
7. How do I start the home-buying process in Royal Oak?
To start buying a home in Royal Oak, MI, follow these steps:
Get pre-approved for a mortgage to understand your budget.
Work with a local real estate agent who knows the Royal Oak market.
Make a competitive offer and negotiate if needed.
Complete inspections and finalize financing.
Close on your new home and move in!
🔎 Want expert guidance on buying in Royal Oak? Contact Jim Shaffer & Associates today to get started!