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In real estate, it pays to stay up-to-date with the latest trends, news, and education. The market is ever-evolving and highly complex, meaning there’s always something to learn from another agent or transaction.
But with so many news sources to keep up with, it can be hard to keep up with the Michigan real estate market specifically—or news that can affect you specifically, too. In this guide, we’ll make it simple to get up to date with everything real estate as of mid-2024.
So keep reading to get caught up on Michigan real estate market news and more.
The Latest Michigan Real Estate Market News
From relief for home buyers seeking inventory to prices climbing and everything in between, here’s the latest Michigan real estate market news you may have missed.
According to the National Association of Realtors (NAR), the market might be approaching a point where demand is declining and inventory is rising. The group's most recent Pending Home Sales Index, which showed that pending home sales decreased 2.1% in May and were down nearly 7% from 2023, demonstrates this.
“Persistently high mortgage rates in May kept many prospective buyers on the sidelines,” says Carl Harris, chairman of the National Association of Home Builders, in the article, which could continue to plague the market if they continue.
The National Association of Realtors (NAR) is also forecasting a positive shift for the market as a whole in 2024. Mortgage rates, which peaked near 8%, are expected to average around 6.3% to 6.5%, improving housing affordability. Overall, NAR predicts a 13.5% increase in existing home sales and a 19% rise in new home sales.
Of course, the market's recovery will continue to depend on job growth and inflation trends.
Forbes recently reported that prices continue to climb widely across the Michigan real estate market. That being said, the increase in price does vary from region to region across the state. The areas with the highest year-over-year sales price increase include:
On the flip side, some areas are showing a decline in sales prices. Those areas include:
As for The Grand Rapids area and Western Michigan in general continue to be hot spots for new buyers. This year, Grand Rapids took ninth on Realtor Magazine’s Top 10 Real Estate Markets of 2024.
The city itself has forecasted 6.1% home sales growth and home price growth of 7.2%, while other Kent and Ottawa County locales are experiencing just as much interest. However, the market is characterized by a low inventory of available homes, which has driven up prices and created a competitive environment for buyers.
In Kent and Ottawa counties, this scarcity has led to homes selling quickly, often above the asking price. The trend is similar in Northern Michigan, where areas like Traverse City are also facing high demand and limited supply, further pushing up prices.
Overall, while West Michigan's real estate market remains strong, the combination of high demand and low inventory is a double-edged sword, offering opportunities for sellers but challenges for buyers trying to find affordable options
First-time home buyers are having a hard time with affordability across the US, with overall sales down. In 2022, the group hit an all-time low, making up only 26% of all buyers that year. However, a problem specific to Michigan has to do with second-home buyers.
Michigan tends to have higher than normal second home rates due to its large number of lakes and waterways. The National Association of Home Builders reports that Michigan is one of eight states with half the nation’s second homes. Even more, in 6 Michigan counties, half the housing is recorded as second homes.
While there are no exact statistics to point to a slowdown, industry insiders cite less demand for second home purchases, likely due to affordability concerns.
Rising mortgage rates are having a significant impact on the market in Michigan and many other states, too. The average interest rate for a 30-year mortgage has increased, which affects affordability for many buyers.
This increase in borrowing costs, combined with high home prices, is expected to slow down the rapid price gains seen in recent years. Some buyers are now exploring adjustable-rate mortgages as a more affordable option.
According to ATTOM's Q2 2024 U.S. Home Affordability Report, homeownership has become less affordable in nearly all counties with sufficient data. Due to rising median home prices, major homeownership expenses now account for 35% of the average wage, a decade-high percentage.
This trend suggests that affordability challenges will persist, affecting potential buyers' ability to enter the market
NCI: Michigan Real Estate Market Education
Of course, to stay on top of your game, it takes more than just staying in tune with the latest news. You’ve got to stay up-to-date with the latest continuing education, too. At NCI, we make it simple and seamless to be successful by focusing on only Michigan real estate and law courses.
Whether you prefer live webinar courses, in-person courses, or online self-paced courses, we do real estate education your way at NCI. Decide if NCI is right for you by learning more about our school, hearing from fellow real estate agents, or getting in touch with any questions.
But before you go, connect with NCI professionally on LinkedIn to get all of the latest Michigan real estate market news live in your feed.
However, fulfilling the promise of a successful real estate future requires the right choices at the right times. The most important decision to make right now? Where you’ll begin — or continue — your real estate training. NCI Associates, Ltd. remains your intelligent choice for Michigan Real Estate Classes.
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