December Was Proof The Real Estate Slowdown Has (Finally) Hit Northern Michigan
Jan. 11, 2023
Sales of residential real estate continue to slow at a record pace, as evidenced by December sales figures. There were 175 homes sold in the five-county area last month. It’s a decline of 47 percent from the 333 sold in December 2021. In fact, it is the lowest number of homes sold for the month dating back to 2010, when the industry was just recovering from the Great Recession. The total dollar volume this year was $71,223,205, far below last year’s $138,058,618 and the lowest total since 2018. The year’s average price of $406,989 was higher than any year other than last year’s $414,590.
All five counties showed a decrease in the number of homes sold, with the greatest drops in Grand Traverse County and Leelanau County. The former came in at 102 sales last month vs. 171 in December 2021. Leelanau was down to 16 from 59 the year prior. However, both Leelanau and Benzie saw an increase in the average price of a home. The former escalated to $550,737 in December 2022 compared to $474,559 for 2021, while Benzie’s went to $380,225 from $330,659.
Sales for the year showed a similar pattern. Overall, the number of residential sales was down, while the average price was up. There were 2,771 homes sold in 2022, compared with 3,373 in 2021 and a record 3,455 in 2020. The total dollar volume was $1,293,892,900, over $100 million shy of the $1,404,785,385. The average price was $466,940, topping last year’s high-water mark of $416,479. The same was largely true for sales of vacant land as well: There were 1,176 such sales for the year, compared with 1,600 for 2021. The total sales of $147,045,006 lagged behind the $213,859,124 for 2021, as did its average of $125,038 compared to $133,661.