Last year was another solid year for luxury and waterfront home values in Northern Michigan. Median sold prices continued to climb on our lakes and non-waterfront homes valued over $1MM. Somewhat surprisingly, many of our Inland lakes, like Walloon, appreciated at the double-digit levels on top of already astronomical growth these last few years. We continued to see the number of home sales decline as interest rates caused some would-be sellers and buyers to put the brakes on. Median days of the market were relatively flat, with the average moving up, which tells us homes that are properly priced and marketed are still selling at a lightning pace while the market is normalizing.
What should we expect for 2024?
More sold price increases with continued stabilization. Interest rate declines predicted for this year should offset economic pressure and keep prices in line with last year, but not as far off the charts as in years past. Lower interest rates are also likely to increase the supply of potential new homes as sellers start to take a teensy bit of pressure off those brakes. We anticipate the offset will lead to more normal or flat appreciation and possibly a slight uptick in the number of homes hitting the market. Inventory will remain tight, especially in luxury and waterfront, which is more apt to be passed on to heirs generationally. We expect homes to take just a little longer to sell on average, but still at record speeds relative to historical numbers. Sellers who have been on the fence about selling have not missed their opportunity to take advantage of this market.
Buyer demand for Northern Michigan luxury and waterfront is still strong. We have seen an increase across all lakes and luxury segments we serve, and clients have shown incredible resolve and willingness to wait for “the one”. Rising temperatures in the south have increased the interest we see from snowbirds who are seeking an instant community like ours to escape the dog days of summer back home in Florida, Georgia, and Texas ( a few areas where we saw an increase in the number of buyers we serve). While the initial post-COVID boom experienced in markets like ours has tempered as remote employees migrate back to more office time, our niche market remains attractive to affluent buyers who have unprecedented flexibility and resources.
As a team, we expect 2024 to be our best on record after finishing ’23 among the top luxury realtors across all key measures. Why? One metric we are most proud of is our sold-to-list price ratio, which was just over 100%, a full 4.1% better than the average in the MLS and higher than the top-producing realtors in the space, which means we put more money in your pocket than our competition. But it’s not only about money in the luxury space, is it?
You need and deserve the process to be easy, and we are at the ready to bring the best luxury selling experience in Northern Michigan to you this year. Our five-star Google rating makes it clear we care for our clients and make the process of selling a home seamless and easy. We are constantly investing in our team and making improvements to perfect our client experience. This year, we are adding complimentary home staging and handyman services for all our luxury clients.*
If you are considering selling this year or are curious about your market value, we would be honored to set up a confidential and complimentary consultation to talk about how we would go to work for you.
