July '24 Market Report

RISING HOME VALUES HOLD

The Southeast Michigan housing market continues to demonstrate significant trends that are essential for both REALTORS and consumers to understand. As of July 2024, the market is characterized by rising property values, stable pricing, and mixed sales activity. These dynamics are crucial for making informed decisions in the current real estate landscape.

Key Trends and Insights

1. Rising Property Values: The price per square foot (Price/SF) across the SEMI region has shown a consistent year-over-year increase. June 2024 saw a 6% rise in Price/SF compared to the same period last year, indicating strong demand and limited supply. This trend underscores the importance of pricing strategies for both sellers and buyers, as property values continue to appreciate.

2. Stability in Average Sale Price: Despite the fluctuations in sales volume, the average sale price has remained stable, around $349,912 in June 2024. This marks a 7% increase year-over-year, reflecting
a resilient market where prices are holding steady despite broader economic uncertainties. For sellers, this stability offers confidence in the market’s ability to sustain property values.

3. Decreasing Inventory and New Listings: The market is experiencing a notable reduction in new listings, with a 6% drop from the previous month. This trend of decreasing inventory, down 4% year-to-date compared to 2023, continues to challenge both buyers and sellers. The scarcity of available homes exacerbates competitive conditions, often leading to multiple offers and quick sales.

4. Strength in the High-End Market: The market for properties priced over $500,000 remains robust, with stable listings and relatively high Price/SF. This segment shows resilience against broader market challenges, likely due to different economic factors influencing higher-income buyers.

$500k+ Market Remains Robust

Demand for homes in the upper-end market continues to show strength. Closed sales in this price bracket increased 16% while inventory only increased 8%. As prices rise more buyers are entering the price range than we have a supply of listings for.

Market Outlook

The SEMI housing market is at a pivotal point, with rising prices and limited inventory shaping a competitive environment. Realtors and consumers should be prepared for ongoing challenges in finding available properties and navigating competitive offers. Understanding these market dynamics is crucial for setting realistic expectations and making informed decisions.