The Southeast Michigan real estate market continues to see historic trends as we move through the summer of 2023. While inventory has dropped significantly, down 32% compared to June of 2022, strong demand remains unabated. Despite depleted inventory quantity and quality, prices are at historic highs, just above former records from last year.
Despite the shortage of new listings, down by 33%, buyers are tenaciously active, with June and July showings down by just 2% from last year—a testament to strong and stable demand.
The supply shortage is, however, creating friction in transaction activity. June new pendings and closed sales were down 12% and 17% compared to last year. That drop in sales activity is primarily due to the lack of quality inventory. The best listings continue to sell immediately leaving shelves half-full with tired seconds.
In a nutshell, while the Southeast Michigan real estate market grapples with supply shortages, buyer interest remains strong, keeping prices at historic highs— slightly above last year. The dynamic tension between supply and demand continues to shape the market, making it a seller’s market. For buyers, it’s a matter of patience and persistence in this challenging environment.