Michigan home prices continue to rise as more buyers compete for the same properties. Currently, the typical value of homes in Michigan is $237,918 (Zillow Home Value Index). Michigan home values have gone up by 1.5% over the last twelve months. In Michigan, the lack of available housing inventory will prevent prices from falling. There has been considerable conjecture connecting the current situation to the 2008 housing market crash.
In 2008, however, there were inflated prices on numerous available properties. Now, actual demand is driving price increases. However, rising interest rates may reduce a buyer's ability to finance the price of a home. This is because the interest rates will affect their monthly payment, perhaps removing some properties from their budget. Those who cannot compete on pricing will be compelled to continue renting or remain in their current residence.
Michigan Housing Market Forecast
The housing market in Michigan has been experiencing some notable trends, and analyzing the current data can provide us with valuable insights into what the future might hold. As of recent reports by Zillow, the Michigan housing market is showing resilience and growth, with the average home value at $237,918, marking a 1.5% increase over the past year. The time taken for a home to go from listing to pending is approximately 8 days, emphasizing the demand in the market (data through August 31, 2023).
Key Metrics:
- Median Sale to List Ratio (July 31, 2023): 1.000
- Percent of Sales Over List Price (July 31, 2023): 51.3%
- Percent of Sales Under List Price (July 31, 2023): 34.5%
- Median Days to Pending (August 31, 2023): 8
Considering the current scenario, a common concern is whether home prices are dropping in Michigan and if the housing market is cooling off.
Top 10 MSAs in Michigan for Home Price Growth by August 2024
Zillow's projections for the Michigan housing market indicate substantial growth in various Metropolitan Statistical Areas (MSAs) by August 2024. Here are the top 10 MSAs in Michigan and their anticipated growth rates:
- Cadillac, MI (MSA): Projected growth rates – 1.4% (30-09-2023), 3.3% (30-11-2023), 8.1% (31-08-2024)
- Traverse City, MI (MSA): Projected growth rates – 0.7% (30-09-2023), 2.0% (30-11-2023), 6.8% (31-08-2024)
- Saginaw, MI (MSA): Projected growth rates – 0.3% (30-09-2023), 1.4% (30-11-2023), 6.4% (31-08-2024)
- Muskegon, MI (MSA): Projected growth rates – 0.5% (30-09-2023), 1.7% (30-11-2023), 6.4% (31-08-2024)
- Battle Creek, MI (MSA): Projected growth rates – 0.5% (30-09-2023), 1.2% (30-11-2023), 6.1% (31-08-2024)
- Flint, MI (MSA): Projected growth rates – 0.9% (30-09-2023), 1.9% (30-11-2023), 5.7% (31-08-2024)
- Escanaba, MI (MSA): Projected growth rates – 0.6% (30-09-2023), 2.1% (30-11-2023), 5.6% (31-08-2024)
- Niles, MI (MSA): Projected growth rates – 0.6% (30-09-2023), 2.0% (30-11-2023), 5.5% (31-08-2024)
- Bay City, MI (MSA): Projected growth rates – 0.7% (30-09-2023), 1.7% (30-11-2023), 5.5% (31-08-2024)
- Ludington, MI (MSA): Projected growth rates – 0.0% (30-09-2023), 1.2% (30-11-2023), 5.5% (31-08-2024)
These growth rates suggest a positive trajectory for the real estate market in these Michigan regions, providing potential opportunities for homeowners and investors. Overall, the Michigan housing market is currently witnessing an increase in home values, emphasizing a robust market. Despite concerns, Zillow's projections indicate a positive trend in home price growth in several Michigan regions, indicating a promising future for both buyers and sellers in the state.
Michigan Housing Market Report: Residential Sales Statistics
The Michigan housing market, like any other, is a dynamic entity influenced by economic shifts, consumer sentiment, and a myriad of factors. Residential sales statistics provide a comprehensive snapshot of how the market has performed over time.
In this report released by Michigan Realtors®, the Michigan housing market reveals crucial residential sales statistics for the month of July 2023, drawing comparisons between the years 2023 and 2022. Additionally, it provides a glimpse of year-to-date (YTD) figures, offering insights into market trends and performances.
In the year-to-date (YTD) comparison, the data indicates an 18.72% decrease in the number of home sales for 2023, with 63,694 sales recorded, in contrast to 78,365 sales in 2022. Conversely, the average price has seen a 2.20% increase, with the average price standing at $270,129 in 2023 compared to $264,308 in 2022.
Breaking down the statistics for the month of July, 2023 witnessed 9,150 residential sales, representing a 22.68% decline from the 11,834 sales recorded in July 2022. On the other hand, the average price experienced a 2.21% growth, reaching $284,042 in 2023, up from $277,888 in the same month of 2022.
These figures offer valuable insights into the dynamics of the Michigan housing market, presenting trends in both sales and prices. This comprehensive analysis equips individuals and entities in the real estate sector to make informed decisions and navigate the market effectively.
How Competitive is the Michigan Housing Market?
The Michigan housing market displays a competitive landscape, witnessing significant shifts in home prices, sales, housing supply, and demand. These factors collectively reflect the level of competitiveness within the state's real estate sector.
Home Prices and Sales
According to Redfin's data, in August 2023, home prices in Michigan surged by 5.2% compared to the previous year, reaching a median price of $258,100. However, there was a 15.4% decline in the number of homes sold year over year, totaling 11,658 homes sold in August 2023. The median days on the market also decreased by 2 days year over year, demonstrating the market's competitive pace.
Michigan Housing Supply
The housing supply in Michigan saw a decrease, with 34,320 homes for sale in August 2023, representing an 18.2% decrease from the previous year. Additionally, the number of newly listed homes dropped by 7.9% year over year, contributing to a reduced average months of supply, standing at 2 months.
Michigan Housing Demand
The demand in Michigan's housing market showcased its competitiveness, with 42.6% of homes sold above list price in August 2023, marking a 2.7 points increase from the previous year. Conversely, the percentage of homes with price drops decreased to 30.7%, down from 31.0% in August last year. The sale-to-list price ratio also improved, reaching 100.0%, an increase of 0.4 points year over year.
Top 10 Metros with Fastest Growing Sales Price
Michigan showcases several metros with a notable increase in sales prices, further underlining the market's competitiveness. The top 10 metros with the fastest-growing sales prices include:
- Tecumseh, MI: 40.3%
- Berkley, MI: 34.0%
- Niles, MI: 30.2%
- Holland, MI: 29.4%
- Auburn Hills, MI: 26.7%
- Inkster, MI: 26.5%
- Escanaba, MI: 25.6%
- Burton, MI: 24.1%
- East Lansing, MI: 21.8%
- Dearborn Heights, MI: 21.2%
These figures collectively highlight the competitive nature of the Michigan housing market, with notable shifts in prices, sales, and market dynamics. Buyers and sellers need to stay informed and agile in navigating this dynamic real estate landscape.
Sources:
- https://www.mirealtors.com/housing-statistics
- https://www.zillow.com/mi/home-values/
- https://www.redfin.com/state/Michigan/housing-market
- https://fred.stlouisfed.org/series/MISTHPI#
- https://www.zillow.com/research/data/
