May '24 Market Report
The pace of the arrival of new listings continues to be the throttle that drives our markets. The best listings continue to sell fast with competing offers and over-asking prices.
Southeast Michigan: In our SEMI markets, 64% of April closed sales were “at or over” full asking price— 16% even with list price and a whopping 48% over. YTD prices are up 9% and closed sales are now even. New listings are starting to drop below last year’s pace. Expect market activity (new pendings and rising prices) to level off. Closed sales and prices will again peak in June (as they have over the last 3 years). The slowing of activity will be caused by a dip in new listings and fading inventory quality. A higher percentage of available listings will be “seconds”— less-than-prime properties that sit longer on the market due to lack of detailing or over-pricing. We’ll continue to see high demand and quick sales for new listings that are well maintained and competitively priced through the balance of the year.
Washtenaw: Driven by tight inventory, Washtenaw YTD sales are down 9%, but average sale price is up 11%. As with the Southeast market, half of April closed sales were above asking with 19% even with asking price. Closed sales and average sale price will likely peak in June (as it has the past few years) before slowly fading for the balance of the year. Any easing of prices will be due to quality of available inventory rather than lack of demand. The best listings will continue to sell fast and for over-asking prices throughout the year.
Northwest Michigan: Three distinct property types (waterfront, non-waterfront and condos) make up our Northwest market. Overall sales and prices are up—8% and 11%. At $1.2 million, the average YTD waterfront sale price is up 33%. While market activity is beginning to level off in our southern markets, the NW market runs on a later seasonal cycle. Activity and prices will continue to rise for a few more months. Closed sales won’t peak until August or September. There’s no shortage of demand and the arrival of quality new listings will continue to drive the NW market.
