Northwest, MI Looking Ahead to 2024
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DEMAND
As late as November, nearly half of all closed
sales have been at or above asking price.
Buyers continue to compete for listings—a
strong indication that demand for quality
listings continues to exceed supply. Expect
buyer enthusiasm to carry over into 2024. The
bottleneck responsible for the 11% drop in NW
Michigan sales this year was primariy caused by
limited inventory (quantity and quality). Expect
buyer enthusiasm to carry over into 2024 with
additional boosts as interest rates adjust down.
LISTING SUPPLY
Compared to prior years, listings were slow to
arrive in the early months of 2023. That flipped
in the second half. By November new listings
were running even with prior years since 2019.
Inventory will continue to normalize in 2024.
Some of the buyers who bought vacation
homes during the pandemic may soon be
ready to sell as they return to the rat race and
struggle to find time to drive north for relaxing
weekends.
VALUES
The combination of sharp demand and limited
supply caused priced to jump in April and they
have been holding steady since. Despite a
slow start, YTD average sale price is up 10%.
Prices typically fade off in the second half of
the year as the quality of inventory gets picked
over. This year, average price is holding steady.
November’s average sale price of $497k was up
21% compared to last year.
SUMMARY
Expect inventory levels to loosen up a little in
2024. The extra inventory will help feed hungry
buyers. Sales, which were down 11% this year,
will pick up slightly and prices, which rose 10% in
2023 may rise about half that much again in 2024.
