What You Can Expect From Michigan’s Real Estate Market in 2023
January 18, 2023
January 16th, 2023
As most home buyers know, the real estate market is constantly changing. Are home prices increasing? How many homes are selling per year? When selling, how long can you expect your home to stay on the market? It all can be overwhelming. We’re here to break it down for you.
Will Michigan Be a Buyer’s or Seller's Market in 2023?
During the last two years, Michigan has been a seller’s market. The question is, will this change in 2023? Well, according to the chief financial analyst for Bankrate, “affordability issues and economic worries will depress home buyer demand, and the inventory of homes available for sale will remain limited.”
Therefore, it’s predicted that 2023 will be more of a balanced market rather than leaning toward one way or the other.
Michigan Real Estate Market Stats:
In 2022, the current average home value in Michigan was $237,156. Over the last 12 months, home values have increased by 13% and 32% during the previous two years. Rising prices are a sign of a healthy housing market in the state.
The total amount of residential sales year-over-year dropped from 14,694 to 12,833. This was a decline of 12.67%.
According to Zillow, these are the forecasted price raises for homes in the metro areas of Michigan in 2023:
Detroit - 2.1% increase
Grand Rapids - 3.3% increase
Big Rapids - 2.1% increase
Ann Arbor - 0.5%
Flint - 3.5%
Lansing - 2.2%
Muskegon - 5.7%
The year 2023 is expected to see a rise in inflation. It’s predicted that inflation will increase late in the year, which isn’t ideal for the housing market.
Inventory shortages will begin to decrease throughout the latter half of 2023. It’s predicted that new housing construction will pick up and reduce the housing shortage. This is excellent news for both buyers and sellers.
Home prices are expected to remain higher in 2023 than in 2022, but it’s also likely that the inventory will be close to the market again. Supply levels could return to normal, but then new builds could flood the market, and as a result, sellers may be more inclined to sell their homes.
The market has seen historically low mortgage rates for the last two years. This caused trouble for many home buyers trying to secure a new home. These conditions are expected to change in the new year, and a housing boom could cause an increase in demand for housing.
The baby boomer generation is expected to continue building up their wealth through home appreciation and the stock market. Many boomers are ready to retire, sell their homes, and downsize.