Michigan Housing Market Analysis - August 2024
The Michigan housing market in August 2024 has given us several key indicators showing both positive and negative trends. This analysis delves into the various metrics to provide a comprehensive overview of the current state of the market.
Price Metrics
The Median Sales Price for homes in Michigan stands at $271,300, reflecting a slight decrease of 1.9% year-over-year (YoY). Similarly, the Median List Price has also seen a decline, albeit a smaller one, at $269,400, down by 0.9% YoY. Despite these declines, the median Price Per Square Foot has increased by 5.2% YoY to $183, indicating a rise in the value of smaller properties. The Median List Price per square foot has also seen a significant increase of 6.8% YoY, now at $182.
Sales and Inventory
The number of Homes Sold in August 2024 is 11,250, which is a notable decrease of 7.6% YoY. Pending Sales have also dropped by 6.6% YoY, totaling 12,412. New Listings have seen a smaller decline of 2.2% YoY, with 13,931 new properties entering the market. On the other hand, inventory has increased by 9.0% YoY, reaching 23,344 homes. This rise in inventory has contributed to an increase in the Months of Supply, which is now at 2.10 months, up by a substantial 30.0% YoY.
Market Dynamics
The Median Days on Market for homes in Michigan is currently 25 days, showing a slight increase of 5.0% YoY. The average sale to list ratio has decreased by 0.9% YoY, now at 99.1%, indicating that homes are selling slightly below their list prices. The percentage of Homes Sold above list price has also dropped by 6.3% YoY, now at 36.1%. Additionally, the percentage of Price Drops has increased by 5.0% YoY, with 34.6% of listings experiencing a reduction in price. The percentage of homes going off the market within two weeks has decreased by 5.0% YoY, now at 47.6%.
Conclusion
In summary, the Michigan housing market in August 2024 is characterized by a mix of declining sales prices and increased inventory. While the value per square foot has risen, indicating a demand for smaller properties, overall sales and Pending Sales have decreased. The market is also experiencing longer times to sell and a higher frequency of Price Drops. These trends suggest a cooling market, with buyers potentially gaining more leverage as inventory increases and prices stabilize.
