August '24 Market Report
IS A FULL PRICE OFFER ENOUGH?
Although the availability of listings is slowly rising, buyer demand remains extraordinarily high in relation to supply. Buyers continue to wait for the best listings and pounce on them when they arrive.
Last month, 66% of closed sales in Southeast Michigan were at or above asking price. Of those, 50% were above asking, 16% were full price and only a third were below asking price. When making an offer, pay attention to closed comps to see how much above asking price successful buyers had to go to land the deal. If you’re thinking this is a home I’ve got to have, other buyers are probably thinking that too.
As we move through the second half of the year, expect the frequency of over asking offers to fade. It’s not so much an indication that demand is dropping, but rather a reflection of inventory quality. The best listings go quickly with more over-asking offers early in the season. Later in the year, the proportion of fresh prime listings drops off and the remaining inventory becomes picked over. Expect to see market times (days on market) and the frequency of price reductions to rise through the balance of the year.
