DEMAND
Since July nearly 65% of all closed sales have been at or above asking price. Buyers continue to compete for listings—a strong indication that demand for quality listings continues to exceed supply. Expect buyer enthusiasm to carry over
into 2024. Lack of quality inventory created the bottleneck responsible for the 16% drop in Washtenaw County sales this year. Expect buyer enthusiasm to carry over into 2024 with additional boosts as interest rates adjust down.
LISTING SUPPLY
New listings have been slow to arrive throughout 2023. Listings levels were remarkably stable between May and October—they forgot to hit their mid-year peak. The recent months of September and November were down 33% and 29%. Year to date, total new listings are down 25% compared to last year. The market is in a listing gridlock as potential sellers are reluctant to give up their capped property taxes and low interest rates at a time when there aren’t many buy options when they do sell. Low inventory levels will continue to restrict sales in 2024.
VALUES
The combination of sharp demand and limited supply create pressure to drive prices up. YTD average sale price is up 3% compared to last year and 45% compared to 2019. The best listing continue to sell fast and for premium prices. Listings that don’t sell quickly tend to lack the quality detailing buyers want. Expect prices to hold and rise whenever fresh quality inventory is available.
SUMMARY
There is no shortage of demand, but our sales and values have been limited by the limited quantity and quality of listings. Buyers will continue to wait
and compete for the best listings with premium offers.
Source: Real Estate One