Q2 2024 Market Report: Northern Michigan Real Estate Market Update

We are hot off of Q2, and here is an update on what's going on in the Northern Michigan real estate market. The headline is that the general real estate market is still very healthy. We're in front of a lot of buyers and sellers, and one of the most common things we hear these days is, "Well, I'm seeing a lot of price drops. Does that mean the market has turned?" And we do see those price drops as well. In fact, we've dropped a couple of those prices when we've needed to for a property. And we think that is a continued normalization and stabilization in the market.

Bottomline: The overall market in Emmet and Charlevoix Counties this year, from January to the end of June, is very healthy. Almost all of the key metrics that we look at are solid and not causing any concern.

Home Price Appreciation

The first and most important metric is home price appreciation, which has continued to rise. We've seen a 7% increase this year. While this is down from the 18-20% we saw during the peak of the market, it is still a very healthy, perhaps even high, rate of appreciation. This suggests that the market is normalizing.

Unit Sales

Another trend to note is in unit sales. Across all price ranges, unit sales are down just a little bit but not meaningfully. Homes are still selling at about 97% of the asking price. What we think is happening is that some sellers are setting their prices a bit high initially, then adjusting them to more market-driven prices. This is supported by the sales results we've seen.

Days on the Market

Days on the market is another crucial metric. It's one of the most important factors we look at for our sellers because it indicates what's happening in terms of pricing within the market and for individual homes. The median days on the market has increased to 51 days, up from 42. This increase tells us that most homes, when priced properly, are selling in about 51 days. The higher average days on the market indicate that some homes are taking longer to sell, likely due to initial overpricing.

Market Health

Overall, it's a healthy market. If you're a buyer, now is a good time to act, especially before interest rates come down and more people enter the market. Higher interest rates are still a factor, but relief may be on the horizon with the latest news. Whether you're a buyer or a seller, we have a strategy to support your unique needs.

Give us a call today to discuss how we can help you navigate your Northern Michigan real estate dreams.