Northwest, Michigan – Supply Down, Demand Strong, Prices at Historic Highs

The Northwest Michigan real estate market continues to see historic trends as we move through the summer of 2023. While inventory has dropped 4% compared to June of 2022 and the inventory is picked over, demand remains strong and prices are at historic highs, just above  former records from last year. Despite the shortage of new listings, down by 11%, buyers are tenaciously active, with state-wide June and July showings down by just 2% from last year—a testament to strong and stable demand. The supply shortage is creating friction in transaction activity. June new pendings and closed sales were down 38% and 20% compared to last year. That drop in new pendings will lead to fewer July and August closings. That decline in sales activity is due in large part to the lack of quality inventory. The best listings continue to sell immediately leaving shelves half-full with tired seconds.

June ‘23 v ‘22

• Inventory -4%

• Showings -2%

• Listings -11%

• Pendings -38%

• Closed Sales -20%

• Avg $/SF +3%

In a nutshell, while the Northwest Michigan market grapples with supply shortages, buyer interest remains strong, keeping prices at historic highs. The dynamic tension between supply and demand continues to shape the market, Although there’s some shifting, it remains a sellers’ market. For buyers, it’s a matter of patience and persistence in this challenging environment.