Posted on October 16, 2017
As we move through 2017, a fabulous year for real estate in West Michigan, the trend of increased sale prices and lower inventory continues to be the theme.
As you can see in the chart above, prices overall in the region along the Lake Michigan shoreline for residential real estate increased 9% compared to the same time period last year. Not the 20-30% some of the potential “bubble” markets are seeing, but a nice moderate, healthy increase in property values.
The Holland / Saugatuck markets saw the biggest increase in sale price at 11%, with an average home sold price of $251,970. Number of sales were up compared to the previous year as well by 1%, while the real estate inventory lagged behind by 3%.
Making a very strong showing is Muskegon County which showed a gain of 9% year over, and increased the average sale price to $140,230. Number of home sales there were also up 5%, and sales volume up 15%.
North Ottawa County real estate region, which encompasses the cities of Grand Haven, Spring Lake, Ferrysburg, to name a few, is also having a strong year so far in real estate. Average sale price is up 6%, and has the highest average sale price of $260,925.
Mason Oceana Manistee counties, which include the coastal towns of Ludington, Pentwater, and Shelby was collectively up 7%, but has the biggest drop in inventory of 12%.
Southwestern Michigan includes communities such as South Haven, New Buffalo, Lakeside, Harbert, Union Pier. The towns included in that region saw an increase in average sale price of 8%, and active listings down 7% year over compared to 2016.
One item of note within all of the sales is the average sale price compared to list price, where sellers are getting 97% of their asking price; a strong number, and a 1% increase compared to last year. Many more competing offers and escalation clauses are pushing these percentages higher, which is great news for sellers.