After a few years of supply shortages, inventory began to return to more normal levels in the second half of 2023. Demand remains strong and buyers continue to wait for an opportunity to pounce on the best new listings. Nearly half of all fourth quarter sales closed at or above full asking price—in pre-pandemic years, roughly 25 to 30% of sales were at or above full price. Interest rates are expected to ease in 2024 and may drop below 6% by the second half. Continued strong demand combined with increased supply and lower interest rates should all contribute to additional 2024 sales. Buyers will continue to pay premium prices for the best listings.

NW Prices Continue to Rise

While price increases varied by property type, the average sale price increase was 9% for NW Michigan properties. Waterfront was up 10%, Non-Water 8% and Condos 7%. Those are big jumps considering how much property values had already risen in recent prior years. The average waterfront property has increased 80% since 2019—63% for non-waterfront single family homes and 50% for condos. Last year’s prices started slow but finished strong. We’re expecting prices to continue to rise at close-to last year’s rates.