October '24 Market Report
BUYER COMPETITION EASING
This chart highlights seasonal and yearly shifts in the relationship between list price and closed sale price in Southeast Michigan since 2022. The red line represents the monthly percentage of homes selling below, blue line at, and green line above list price. The over and under peaks and valleys have been shrinking as the market becomes more balanced.
Over the past few years, the real estate market has had buyers on an emotional roller coaster. Since 2019, demand has consistently outpaced supply, leading to fierce competition. The best homes were often snapped up with offers well above asking price as soon as they hit the market, creating a feeding frenzied rush for buyers.
As each year progresses, the market pace tends to slow, but not due to a lack of buyers. By mid-year, many prime listings have been picked over, leaving fewer quality options, which leads to market slowdowns and lower year-end prices. The drop in year-end average price reflects inventory quality rather than fading demand or home values.
The good news is that while shortages persist, especially in entry and mid-price ranges, the supply- demand imbalance is easing. There’s still a shortage of quality listings, but not as intense as in recent years. The “Under-At-Over” chart highlights this shift, showing slightly lower green mid-season peaks each year. It’s still remarkable that 58% of September closed sales were at or above full price.
Looking ahead, buyers might have a little more breathing room, but they’ll still need to act quickly when the right home appears. The market is balancing, but the best homes will still attract strong interest—so stay ready!
