The pandemic-induced gold rush for Northwest Michigan properties is fading but continues to pack a kick for prime properties with the best locations, condition and amenities. While YTD closed sales are down 16% from the amazing numbers posted last year, average sale price across all property types is up 14%. Days on market for new pending properties are rising. They jumped from 40 in August to 54 through the first half of September. As of mid-September, DOM was 74 days and rising. The frequency of price reductions is also increasing—jumping from under 10% in April and May to 28% in September. While still below pre-pandemic averages, it’s catching up.
Across all property types, there’s still a pool of buyers waiting for their “something special”—specific locations and amenities in pristine condition. While these prime properties continue to sell quickly with competing offers, the frequency of “under-10-day” and “over-asking” sales are fading. As the post-pandemic market normalizes, expect market times and the frequency of price reductions to rise to more typical levels. Through the balance of the year, prices will settle due to picked-over inventory quality, higher interest rates and the fading intensity of the pandemic boom.
