Michigan Housing Market Analysis - July 2024
Michigan Housing Market Analysis - July 2024The Michigan housing market in July 2024 presents a nuanced picture with various indicators showing both positive and negative trends. This analysis delves into the key metrics to provide a comprehensive overview of the current state of the market.
Median Sales Price
The median sales price for homes in Michigan stands at $277,200, reflecting a modest year-over-year (YoY) increase of 1.5%. This uptick suggests a steady appreciation in home values, albeit at a slower pace compared to previous years. The increase in median sales price indicates sustained demand in the market, which is a positive sign for sellers.
Median List Price
Conversely, the median list price has decreased by 2.3% YoY, now at $274,100. This decline could be indicative of sellers adjusting their expectations to align with market conditions, possibly to attract more buyers. The reduction in list prices may also be a strategy to counterbalance the slight increase in sales prices, aiming to maintain market competitiveness.
Price Per Square Foot
The median price per square foot has risen to $184, marking a significant YoY increase of 6.2%. Similarly, the median list price per square foot has also increased by 7.5% YoY, reaching $184. These increases suggest that buyers are willing to pay more per unit area, which could be due to a higher demand for quality or well-located properties.
Homes Sold and Pending Sales
The number of homes sold in July 2024 is 11,034, showing a 3.0% YoY increase. This rise in sales volume indicates a healthy market with active buyer participation. However, pending sales have decreased by 1.8% YoY, totaling 12,416. The decline in pending sales might suggest a slight cooling in buyer activity or longer transaction times.
New Listings and Inventory
New listings have seen a 5.3% YoY increase, reaching 14,129. This influx of new properties on the market provides more options for buyers and could help balance supply and demand dynamics. Inventory levels have also risen by 8.8% YoY, now at 22,170. The increase in inventory is a positive development, indicating that the market is becoming more balanced and less competitive for buyers.
Months of Supply
The months of supply metric has increased by 10.0% YoY, now standing at 2.0 months. This measure indicates how long it would take to sell all the current inventory at the current sales pace. An increase in months of supply suggests that the market is shifting slightly towards a buyer's market, providing more leverage to buyers in negotiations.
Median Days on Market
The median days on market have increased by 4.0% YoY, now at 22 days. This slight increase indicates that homes are taking a bit longer to sell compared to the previous year, which could be a result of the increased inventory and more cautious buyer behavior.
Sale to List Ratio
The average sale to list ratio has decreased by 0.6% YoY, now at 99.7%. This ratio measures how close the final sale price is to the list price. A slight decrease suggests that buyers are negotiating more effectively, possibly due to the increased inventory and longer days on market.
Sold Above List Ratio
The percentage of homes sold above list price has decreased by 4.2% YoY, now at 40.9%. This decline indicates that fewer homes are selling for more than their list price, which could be a sign of a cooling market or more realistic pricing by sellers.
Price Drops
The percentage of price drops has increased by 7.4% YoY, now at 33.1%. This increase suggests that more sellers are reducing their asking prices to attract buyers, which could be a response to the increased inventory and longer days on market.
Off Market in Two Weeks
The percentage of homes going off market within two weeks has decreased by 4.4% YoY, now at 50.9%. This decline indicates that homes are taking longer to sell, which could be due to the increased inventory and more cautious buyer behavior.
In summary, the Michigan housing market in July 2024 shows a mix of positive and negative trends. While the median sales price and price per square foot have increased, indicating sustained demand, the decline in median list price and pending sales suggests a slight cooling in the market. The increase in new listings and inventory, along with longer days on market and more price drops, indicates a shift towards a more balanced market, providing more opportunities for buyers. Overall, the market remains active, but with signs of moderation compared to the previous year.
