September ’23 Market Report

As we transition from summer to fall, the Southeast Michigan real estate market shows signs of both resilience and evolution. August’s data brings a mixed bag of trends that indicate slight adjustments in the market, but overall, demand remains strong and enduring. Here is the comprehensive update on the current market landscape.

New Listings: A Slight Uptick Shows Promise

In August, Southeast Michigan saw 5,590 new listings, a 1% increase from last month. This slight uptick might appear marginal, but when considering the past trend of dwindling listings—down by 21% YTD as reported in June—it’s a refreshing departure. More new listings mean buyers waiting for move-in-ready homes in affordable price ranges have slightly more options, and sellers get a broader pool of potential buyers.

New Pendings: A Small but Significant Jump

New pending sales increased by 6% from last month, totaling 4,326. Even though the market had been suffering from declining new pendings—down 12% in June compared to last year—this new data marks a positive shift. This slight increase in new pending sales suggests that buyers are indeed capitalizing on the new listings, even if only slightly more than before.

Closed Sales: Outpacing Other Metrics

Interestingly, closed sales saw a 12% increase from last month, bringing the total to 3,954. Despite being a seller’s market due to the chronic low supply, this significant monthly increase indicates strong transaction activity. Even if it doesn’t offset the 20% YTD decline in sales, it does illuminate a sense of vigor in the market.

Values: Slight Dips but No Cause for Alarm

The price per square foot was $190, marking a 1% decline from last month, and the average sale price was $322k, a 2% decrease from last month. Although any decline in prices can raise eyebrows, these are marginal when contextualized against the backdrop of historical highs. These small fluctuations reflect the dynamic tension between supply and demand that has been a defining characteristic of this year’s market, and they don’t necessarily herald a downward trend.

Conclusions and Forward-Looking Statements

What does this all mean?

• Sellers: It’s still your market. But with new listings gradually coming up, ensure your property stands out in terms of quality and pricing to be competitive.

• Buyers: Demand is still high, but small increases in new listings and pendings may offer a glimmer of hope. Patience and persistence remain key.

• Investors: The market shows resilience but is sensitive to inventory changes. While demand remains high, it’s a good time to explore options.

August’s data illustrates a market experiencing subtle shifts. While new listings and pending sales saw marginal growth, closed sales significantly outpaced both. Prices have slightly declined, but they continue to stand strong in a historical context.

In the face of unceasing demand and perpetual inventory shortages, these small yet meaningful changes in the Southeast Michigan real estate market could be the first signs of a new equilibrium. As we move into the fall, it will be intriguing to watch how these trends evolve. Expect any market shifts to be gradual rather than abrupt, offering both challenges and opportunities for all parties involved.