DEMAND

Since July nearly 65% of all closed sales have
been at or above asking price. Buyers continue
to compete for listings—a strong indication that
demand for quality listings continues to exceed
supply. Expect buyer enthusiasm to carry over
into 2024. Lack of quality inventory created
the bottleneck responsible for the 16% drop
in Washtenaw County sales this year. Expect
buyer enthusiasm to carry over into 2024 with
additional boosts as interest rates adjust down.

LISTING SUPPLY

New listings have been slow to arrive throughout
2023. Listings levels were remarkably stable
between May and October—they forgot to
hit their mid-year peak. The recent months of
September and November were down 33% and
29%. Year to date, total new listings are down
25% compared to last year. The market is in a
listing gridlock as potential sellers are reluctant
to give up their capped property taxes and low
interest rates at a time when there aren’t many
buy options when they do sell. Low inventory
levels will continue to restrict sales in 2024.

VALUES

The combination of sharp demand and limited
supply create pressure to drive prices up. YTD
average sale price is up 3% compared to last
year and 45% compared to 2019. The best
listing continue to sell fast and for premium
prices. Listings that don’t sell quickly tend to
lack the quality detailing buyers want. Expect
prices to hold and rise whenever fresh quality
inventory is available.

SUMMARY

There is no shortage of demand, but our sales and
values have been limited by the limited quantity
and quality of listings. Buyers will continue to wait
and compete for the best listings with premium
offers.