Michigan Housing Market Forecast
Michigan home prices continue to rise as more buyers compete for the same properties. Since the last decade (Sept 2012), the typical home value in Michigan (statewide) has appreciated by nearly 137% (Zillow Home Value Index). Currently, the typical value of homes in Michigan is $237,156. Michigan home values have gone up by 13% over the last twelve months and 32% over the last two years.
Beginning in 2020, Michigan housing prices increased by double digits, and a few years of inventory losses resulted in record lows in home availability during the pandemic. 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.
Here's Zillow's forecast for some of the metro areas in Michigan. None of the MSAs of Michigan is predicted to see a home price decline in 2023.
- The Detroit, MI home values are forecasted to rise 2.1% between July 2022 to July 2023.
- The Grand Rapids, MI home values are forecasted to rise 3.3% between July 2022 to July 2023.
- The Big Rapids, MI home values are forecasted to rise 2.1% between July 2022 to July 2023.
- The Ann Arbor, MI home values are forecasted to rise 0.5% between July 2022 to July 2023.
- The Flint, MI home values are forecasted to rise 3.5% between July 2022 to July 2023.
- The Lansing, MI home values are forecasted to rise 2.2% between July 2022 to July 2023.
- The Muskegon, MI home values are forecasted to rise 5.7% between July 2022 to July 2023.
The statewide data on residential homes from the 42 regional listing boards that comprise the Michigan Association of Realtors show that as more people flock to buy houses, home prices are soaring. The average home is going up more than it was three a year ago. The average sales price in Michigan increased 11.85 percent from a year earlier in July 2022. The average home price in Michigan went up from $244,663 to $273,661.
The total residential sales in the state recorded a decline of -12.67% year-over-year, from 14,694 to 12,833 sales. The rising prices are a reflection of a healthy Michigan housing market. A new high-water mark is being set in the number of sales in many Michigan communities. Emmet County is the most expensive market with a median sales price of $552,945. The median home price in Detroit as reported by the Detroit Board of REALTORS® was $$118,798, up 7.39%.
All-Transactions House Price Index for Michigan (Quarterly)
- Q2 2022: 475.05
- Q1 2022: 446.09
- Q4 2021: 434.09
- Q3 2021: 424.74
- Q2 2021: 404.05
How Competitive is the Michigan Housing Market?
According to Redfin, a real estate company, home prices in Michigan were up 7.7% year-over-year in July. The median price was $256,600. On average, the number of homes sold was down 13.3% year over year and there were 11,395 homes sold in July this year, down from 13,145 homes sold in July last year. The median days on the market was 16 days, up 1 year over year.
In July 2022, 49.9% of homes in Michigan sold below list price, down 5.4 points year over year. A high or increasing percentage of homes selling above the list price suggests that the market is becoming more competitive. There were only 33.8% of homes that had price drops, up from 23.0% of homes in July last year.
There was a 100.9% sale-to-list price, down 1.2 points year over year. There were 34,189 homes for sale in Michigan, up 0.1% year over year. The number of newly listed homes was 14,680 and down 12.4% year over year. The average month of supply is 2 months, with no change from last year.
Top 5 Most Competitive Housing Markets in Michigan
1. Northview, MI: The Northview housing market is extremely competitive. The average sale price of a home in Northview was $296K last month, down 17.0% since last year. The average sale price per square foot in Northview is $199, up 9.3% since last year. Most homes get multiple offers, often with waived contingencies. The average homes sell for about 6% above the list price and go pending in around 6 days.
Hot homes in Northview can sell for about 15% above the list price and go pending in around 4 days.
2. Grandville, MI: The Grandville housing market is also very competitive. The average sale price of a home in Grandville was $280K last month, up 1.8% since last year. The average sale price per square foot in Grandville is $192, up 12.9% since last year. Most homes in Grandville get multiple offers, often with waived contingencies. The average homes sell for about 6% above the list price and go pending in around 6 days. Hot homes in Grandville can sell for about 14% above the list price and go pending in around 5 days.
3. Jenison, MI: The Jenison housing market is also extremely competitive. The average sale price of a home in Jenison was $308K last month, up 9.4% since last year. The average sale price per square foot in Jenison is $180, up 18.8% since last year. Most homes in Jenison get multiple offers, often with waived contingencies. The average homes sell for about 6% above the list price and go pending in around 6 days. Hot homes in Jenison can sell for about 14% above the list price and go pending in around 4 days.
4. Kentwood, MI: The Kentwood housing market is extremely competitive. Homes in Kentwood receive 12 offers on average and sell in around 6 days. The average sale price of a home in Kentwood was $295K last month, up 10.7% since last year. The average sale price per square foot in Kentwood is $182, up 7.7% since last year. Most homes in Kentwood get multiple offers, often with waived contingencies.
The average homes sell for about 5% above the list price and go pending in around 6 days. Hot homes in Kentwood can sell for about 10% above the list price and go pending in around 4 days.
5. Wyoming: WI: The Wyoming housing market is extremely competitive. Homes in Wyoming receive 9 offers on average and sell in around 6 days. The average sale price of a home in Wyoming was $250K last month, up 8.7% since last year. The average sale price per square foot in Wyoming is $185, up 11.8% since last year. Most homes in Wyoming get multiple offers, often with waived contingencies.
The average homes sell for about 7% above the list price and go pending in around 6 days. Hot homes in Wyoming can sell for about 15% above the list price and go pending in around 5 days.
Redfin's Compete Score measures an area's competitiveness on a scale of 0 to 100, with 100 indicating the most competitive area. The Compete Score is determined primarily by four inputs: the number of competing offers, waived contingencies, sale-to-list ratio, and days on market.
Sources:
- https://www.mirealtors.com/
- 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/
