Page 3 - Housing Report - January 2025

JAN 2025
SEMI HOUSING REPORT

Tight Supply Continues to Limit Sales

While inventory is
expected to slowly SEMI 5-County Inventory Jan 1 '25 vs:
rise in 2025, January 7,696 Broker Metrics '24 -4%
'23 -14%
begins with fewer 9,000 6,947 6,657
listings than last year. 8,000
7,000
Shortages of quality 6,000
listings will continue to 5,000
restrict sales. 4,000
3,000
2,000
1,000
-
Inventory continues to impact sales Jan-23 Mar-23 May-23 Jul-23 Sep-23 Nov-23 Jan-24 Mar-24 May-24 Jul-24 Sep-24 Nov-24 Jan-25
and prices in Southeast Michigan.
Historically, supply levels were low
in 2019, even before the pandemic
created a surge in buyer demand. Impact on Buyers and Sellers
Although the intensity of that demand has eased over For buyers, the challenge is clear: the pool of desirable,
time, the lack of new listings continues to challenge move-in-ready homes is limited. Many buyers continue
buyers and constrain sales. to wait patiently for their prize, but when that must-
Buyers continue to compete for the best homes—move- have listing arrives, it’s probably going to ring the bell
in-ready properties that stand out due to their condition for other buyers who have also been waiting. Those
and pricing. Prime listings sell quickly and at premium ready to act fast and pay a premium will win.
prices. In December, half of Southeast Michigan’s closed For sellers, presentation and pricing are critical.
sales sold at or above their asking price and 40% of new Homes that are staged, priced competitively, and
pending sales went under contract in 10 days or less. move-in-ready will continue to attract strong offers,
Homes in average or below-average condition, or those while others may need adjustments to stand out in
priced outside market expectations, struggle to attract this competitive environment.
buyer interest. These “tired listings” sit on the market Inventory has been slow to rise in Southeast
and face price reductions. Today’s unsold active listings Michigan markets. While we expect some supply
in Southeast Michigan have been on the market for an relief in 2025, the shortage of prime listings that sell
average of 63 days, and 35% of them have experienced quickly will continue. We’ll see inventory and market
one or more price reductions. times slowly rise for properties in average or below-
average condition.

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