A Year of Ups and Downs
The 2024 Southeast Michigan housing market had its share of surprises. The year started strong, with more homes on the market and declining mortgage rates. However, optimism faded as rates surpassed 7% in April. Activity slowed during the spring but picked up again in the fall when rates fell to 6.08% by September, encouraging buyers.
Highlights from 2024
Key Counties at a Glance
- Oakland County: Oakland County saw steady growth, with the median home price increasing by 6.1% to $350,000. It remains one of the most sought-after areas for families and professionals due to its excellent schools and proximity to Detroit.
- Macomb County: Macomb County faced a slight decline in sales (-4.3%), but home prices grew to a median of $255,000, up 6.3% from the previous year. The county’s affordability continues to attract first-time buyers.
- Wayne County: Wayne County, including the City of Detroit, saw significant activity. Median home prices rose by 7.3% to $192,000, and the City of Detroit itself saw a 9.4% price jump to $87,500, reflecting increased buyer interest.
Other Notable Counties
- Kent County: Kent County, home to Grand Rapids, remained stable with modest price growth. This region is increasingly popular among young professionals and remote workers.
- Ingham County: With Lansing as its centerpiece, Ingham County continued to see steady demand, especially for properties under $300,000.
- Saint Clair County and Port Huron: Saint Clair County experienced a slight uptick in activity, and Port Huron saw increasing interest due to its scenic waterfront properties and affordability.
Sales Trends
- Pending Sales: Slight growth of 0.3% to 106,605.
- Closed Sales: Stable at 105,862 despite market fluctuations.
Inventory and Listings
- Active Listings: Up by 8.3%, reaching 18,292 homes.
- New Listings: Increased by 4.3%, totaling 140,874.
Home Prices
- Median Sales Price: Rose by 6.6% to $265,000.
- List Price Received: Sellers received an average of 99.2% of their list price, slightly lower than last year (-0.3%).
Challenges and Opportunities
Mortgage Rates
The Federal Reserve’s rate adjustments had a significant impact. Rates peaked above 7% in spring but fell by a full percentage point later in the year, stimulating market activity.
Increased Inventory
An 8.3% rise in available homes provided buyers with more options, especially in higher price ranges where inventory grew by 17.1%.
Shifting Preferences
Demand for homes priced under $150,000 declined, while interest in properties over $450,000 grew, reflecting changing buyer priorities.
What to Expect in 2025
Economists predict a more active housing market in 2025:
- Price Growth: Moderate increases in home prices are expected.
- Mortgage Rates: Fluctuations will persist but likely stay within the 6-7% range.
- Improved Inventory: Both single-family and multifamily construction are expected to rise.
A Resilient Market
The Southeast Michigan housing market demonstrated remarkable adaptability in 2024. Whether you’re planning to sell, buy, or refinance, staying informed about these trends is essential.
Staff Writer