The Latest on Housing Market
Over the past two years, the substantial imbalance of low housing supply and high buyer demand pushed home sales and buyer competition to new heights. But this year, things are shifting as supply and demand reach an inflection point.
The graph below helps tell the story of just how different things are today.
This year, buyer demand has eased as higher mortgage rates and mounting economic uncertainty moderated the market. This slowdown in demand is clear when you look at the red bar on the graph. It uses the latest data from ShowingTime to illustrate how showings (an indicator of buyer demand) have softened by just over 12% compared to the same time last year.
Now for a look at how housing supply has changed, turn to the green bar. It uses data from realtor.com to show active listings are up nearly 27% compared to last year. That’s because the moderation of demand allowed housing inventory to increase in 2022.
What Does This Inflection Point Mean for Buyers?
If you’re thinking of buying a home, you’ll have less competition and more options than you would have had last year. Enjoy having more homes to choose from in your home search and lean on a trusted real estate professional to understand how the increase in supply has also increased your negotiation power.
That professional can talk you through the opportunities and challenges buyers face in today’s shifting market. You may be surprised to find they’re different than they were a year ago.
What Does This Inflection Point Mean for Sellers?
If you’re looking to sell your house, know that inventory is still low overall. That means, if you work with an agent to price your house based on current market value, it will still sell despite the inventory gains and moderating buyer demand this year. That’s because there are still buyers out there who want to move, and your house may be exactly what they’re looking for.
Michigan Housing Supply
Is the market for houses adequate to correspond with demand?
In September 2022, there were 34,244 homes and real estate properties for sale in Michigan, 4.1 % lower than in September of the previous year. The number of new listings was 11,922, down 16.3 % year over year. The average listing supply is 2 months, which is 0% higher than the previous year.
Michigan Housing Demand
The count of listings in Kalamazoo, MI rose 12.7 percent between September 2022 and October 2022. The median list price for all listings was $157,095 that October. Listings spent 13 days on the market that month.
How competitive is the market?
In the State of Michigan in September 2022, 34.7 homes sold below list price, down 11.4 points from a year earlier. There were only 35.2 homes that had a price drop, up from 27.0 the previous year. The sale price-to-list price ratio was 99.0, down 1.4 points from a year ago.
Kalamazoo Housing in 2030
Kalamazoo County will require nearly 8,000 additional residences and real estate properties by the year 2030.
7,750 additional houses will need to be constructed in Kalamazoo County by 2030 based on population growth projections.
Where to Go From Here
If you’re thinking of buying or selling a home, the best place to turn to for information on today’s supply and demand is a trusted real estate professional. Let’s connect so you know what’s happening in our local market and what that means for you.