Market Report

UP! Sale prices have seen nice growth! The law of supply and demand was clearly evident in our market. Midland County saw a 2.4% decline in number of homes available for purchase in 2018. Corresponding sales numbers resulted in unit sales for homes and condos of 1208 in 2018 vs. 1316 in 2017. This lack of inventory and continued high demand lead to an increase in the average sale price for Midland County homes from $160,546 in 2017 to $177,655 in 2018 – an increase of more than 9%. Median sales price was also on the rise from $134,000 in 2017 to $149,000 in 2018. Days on market have continued to decline from 78 in 2017 to 58 in 2018. Days on the market for just single-family homes was even less at just 55 days. Sellers on average sold for 97.48% of listing price vs 96.86% in 2017 and the price per square foot has increased on average from $90 to $97. Properties that were unsuccessful in securing buyers and left the market dropped from 21.36% in 2017 to 14.48% in 2018.

Home sales below $200,000 represented 85.6% of the entire Midland County market. These properties were in great demand and saw the highest appreciation. It was not uncommon to see multiple offers in our peak season. In 2017, 400 properties sold at or below $100,000 while only 284 sold in this category in 2018. The demand remains high as buyers recognize the value of home ownership. Entry level buyers are finding terrific financing opportunities. The rental market remains tight, with investors purchasing properties that are also attractive to first time buyers.

Why is housing inventory so low? According to Marci Rosell, former Chief Economist for Leading Real Estate Companies of the World, demographics tell the tale. She says to think of America's population as a "barbell" with Baby Boomers on one side and Millennials on the other (with GenX the tiny handle in-between). Millennials and Boomers are, in many cases, pursuing the same type of housing (albeit for different reasons) which is extending the unprecedented housing inventory shortage.

Properties in higher price ranges sometimes experienced longer days on market and higher discounts. The lifestyle demands of many buyers today has these house-hunters looking for move-in ready properties. They are willing to sacrifice size or location preferences for a more updated property. Busy couples with an active family are not prepared to spend the time and energy necessary to create the home of their dreams.

2019 has started with more activity than we would usually see at this time. The holiday season and cold weather did not stop buyers from looking for their new home. If a move is in your future – now is a great time to buy or sell! Give us a call, we are happy to help! Ayre Rhinehart Realtors, 989-631-7000.