Northwest, Michigan Inventory Woes and Pricing Gains
Blog Search
Subscribe
Get the latest Michigan Housing Reports delivered straight to your inbox!
Sales Trends:
The pandemic created a boom in Northwest Michigan. In 2020 and 2021, year-to-date sales (through October 31st) peaked at around 3,200. While NW markets continue to be hot and condo markets have been expanding, sales in August, September and October have cooled off faster than they have in previous years. Through October 31, the 2,400 combined waterfront, non-waterfront and condo sales are down 3% YTD from last year and down about 25% from 2020 and 2021.
Values: Average Sale Price and Price Per Square Foot
In the past four years, the 2020 average sale price of $321k has jumped 59% to $509k and price per square foot is up 62%. The rate of increase has slowed but it’s still up 9% from last year. The average waterfront price is up 13% YTD, non-waterfront is up 8% and condo is up 5%. Since 2020 the average waterfront price has jumped 84% from $561k to $1.035m.
Listings Taken:
Aside from a slight dip last year, the number of listings taken has stayed relatively consistent over the past few years, hovering between 3,800 and 4,000 units. A growing portion of these new listings comes from condo developments, which have become the fastest and most efficient way to meet the region’s rising demand
Looking Ahead:
While second half sales fell off quicker this year than in the past, single family waterfront and non-waterfront values have been holding. Condo prices have dropped off in both September and October compared to previous months and compared to the same months last year. The NW markets received a huge jolt of energy from the pandemic. It will continue to carry on, but with a little less intensity. Market cycles will continue to create opportunities for those who understand and embrace them.
