‘22 Recap and ‘23 Predictions

Waterfront

• 2022 waterfront values were up 17% overall—7% for under-$500k, 15% for $500k-$1m, and 12% for over-$1m properties.
• Although sales were down in all price ranges, the decline had more to do with lack of quality listings as opposed to lack of demand. Buyers continue to wait for and the jump on prime listings as quickly as they arrive on the market. As shown in the Waterfront table, the frequency of price reductions is declining while under-10-days sales and over-asking offers is rising—even through year-end and January.
• Expect inventory (quality and quantity) to control the throttle for 2023 sales. Demand is not as extreme and buyers are pickier than they have been.

Non-Waterfront

• 2022 non-waterfront values were up 13% overall—9% for under-$300k, 6% for $300k-$600k and 3% for over-$600k properties.
• Overall sales were down 18% with 24% fewer under $300k sales, but 16% more $300k-$600k and 52% more over-$600k sales.
• Although the frequency of under-10-day sales has been declining and price reductions rising, buyers are still waiting for and jumping on the best listings as soon as they hit the market. More than half of January 2023’s closed sales sold at or above asking price.
• Despite the negative press, buyer demand is higher than most think, but they crave sharp move-in ready properties. Expect quick sales and strong prices on above-average listings, while average and below average properties sit and sell for less.

Condo

• 2022 condo values were up 26% overall—16% for under-$250k, 18% for $250k-$500k and 10% for over-$600k properties.
• Overall sales were down 17%, with 48% fewer under-$250k sales, but 21% more $250k-$500k and 9% more over-$500k sales.
• Although the frequency of year-end price reductions has been rising, the condo market is coming off the blocks strong in 2023 with 40% of the new January pendings under contract in 10 days or less and 40% of January closed sales selling at or above asking price.
• As demonstrated by rising prices and rapid sales, demand remains strong and continues to be restricted by depleted and picked-over inventory. Buyers want and continue to wait for quality listings. Sales and prices will rise as fresh inventory arrives.

‘23 Statewide Showings Off to Strong Start

January overall (all price ranges combined) showings are off to a respectable start across Michigan—
• down 11% compared to ‘22
• just slightly behind ‘21 and ahead of both pre-pandemic ‘19 and ‘20.
• Over-$750k showings are outpacing all but last year’s historic-high numbers.