Michigan Real Estate Stats and Trends for 2023 | Philadelphia Caller - The Philly Caller

MICHIGAN – According to Redfin, home prices in Michigan raised 7.7% yearly. The median price of homes sold in the state is now $256,600. However, the number of homes sold in the state is down 13.3% year-over-year. This year there were 11,395 home sales, compared to 13,145 last year. On average, homes spent 16 days on the market.
According to a recent report from Redfin, home prices in Michigan were up 7.7% year-to-year in July. The median home price in the state was $256,600. However, the number of homes sold was down by 13.3% year-over-year. Only 11,395 homes were sold in July this year, compared to 13,145 last year. The median days on the market were 16 days.
Home sales decreased for the seventh consecutive month in August. This was primarily the result of higher mortgage rates and stubbornly high home prices driving prospective buyers out of the market. August’s sales figures were down by 0.4% compared to July and were the lowest since November 2015. The inventory of unsold existing homes fell to 1.28 million in August, which is the weakest since November 2015.
In July, mortgage rates fell for the first time since June, which may have motivated more home buyers to take advantage of lower interest rates. The 10-year Treasury yield influences home loan rates. On Tuesday, the 10-year yield hit its highest level since 2011, reflecting expectations that the Federal Reserve will raise interest rates even further.
As a pre-election year, 2023 could be fraught with uncertainty. One of the most significant risks for the housing market in 2023 is inflation. According to Doug Duncan, Fannie Mae’s Senior VP and Chief Economist, inflation will rise late in the year, pushing down prices. This is never good for the economy and certainly not for the housing market.
Inventory shortages will begin to ease in the second half of the year. New housing construction is expected to pick up, but supply chain issues hamper it. New construction will reduce the shortage and free up existing homes for buyers later in the year. Ultimately, inventory shortages in Michigan real estate will decrease.
The housing market will continue to grow, but it may not be as rapidly as investors had hoped. While Fannie Mae expects prices to remain high through 2023, it believes that inventory will be close to the market again. When supply levels return to normal, new builds could flood the market. The rising demand could cause a housing market lag despite the low inventory levels. As a result, potential sellers may jump on the bandwagon to sell their homes.
As mortgage rates continue to rise, the demand for homes will be limited. Higher housing prices and rising interest rates will drive the cost of monthly payments beyond many people’s means. Rising interest rates also increase the cost of borrowing and will impact businesses with high leverage levels. Rising interest rates also increase the risk of a recession in 2023.
The housing market has seen historically low mortgage rates for the past two years. As a result, homebuyers have struggled to find available houses on the market. However, these conditions are likely to change in 2023. A new housing boom could spur demand for housing.
In addition to increasing interest rates, rising inflation has affected the housing market. The Fed is no longer acting as a significant bond buyer, and rates will likely continue to grow to attract investors. Higher interest rates are also likely to make it more expensive for consumers to purchase goods from the United States. However, this effect will depend on whether inflation slows down as predicted.
The boomer generation continues to build up their wealth through the stock market and home appreciation. Many are ready for the right size and pull out some of that equity for retirement or to buy a second home. Many also want to help their kids with housing and education. After all, they are the largest generation of homeowners in the country.
Because of this, baby boomers are retiring a little earlier than they originally planned. As a result, new construction is expected to slow, but existing homes will remain on the market. Some are buying second homes or funding their children’s college education, while others are cashing out to avoid capital gains taxes. Some are moving to senior housing, and that trend is expected to continue.
The boomers’ wealth is massive, with their parents enjoying significant economic growth, stock market gains, and substantial home value gains. As a result, baby boomer home values have increased exponentially in recent years. As a result, the boomers are now considered to be the wealthiest generation in history.