Most commonly known for delicious cherries, a beautiful experience of all four seasons, and some of the best real estate in Michigan, Traverse City
is not a new player in the luxury real estate market
. This northern Michigan city is a hub for family vacations, summer outings, and full-time residency. Locals love the variety of things to do in the varied weather climates. Over the last year, the real estate market in Traverse City has been full of prosperous real estate opportunities. People from not only other parts of the state but other states as well have flocked to the city to get a piece of the expanding Traverse City real estate market.
The interest in Traverse City homes has grown thus far in 2020 and continues to do so. Michigan is well known for a wealth of mid-1900s homes that have been renovated in cities like Detroit. The Traverse City housing market expansion in Traverse City has been beneficial to the state's economy. It has been ideal to see so many opportunities open up thanks to successful real estate sales in the past year. Although 2022 has been amazing for the city's real estate market, the year is coming to a close quickly. As we wrap up the fourth quarter of this year, real estate agents, experts, and their clients are all wondering; what will 2023 have in store for Traverse City real estate?
2022 In review
Generating a possible forecast for the upcoming year requires insight into what this year has brought so far. It is no secret that the real estate market in Traverse City this year has been one that has heavily favored local sellers. Buyers have had a persistent interest in Traverse City real estate
, and sellers have delivered by listing their amazing local properties. This is a driving factor when it comes to analyzing quantitative data in the market. Seeing a high demand with an average to low supply in the real estate market will usually equate to homes selling at higher prices than what would have previously been considered standard.
Over time these increases change from being spikes in the market to the new industry standard in the city if the trend continues to rise. An increased average sale price for one month may denote particularly beneficial sales in that month only. However, when that month develops into a year where cells are higher month over month, the overall average sale and listing price will inevitably rise. This has been much of the experience in the Traverse City real estate market over the last year. Prices began to rise slowly, initially looking like a few deals were just higher-price sales.
But over time, these trends continued, and the market experienced consistently rising prices for both total sale price and initial listing price throughout 2022. Homes have been selling for higher prices, and the length of time homes are listed has seen incremental decreases. Both of these factors hint at there being quite a high demand in Traverse City. Seeing this demand continue so strongly throughout the entire year makes it evident that the success in the Traverse City real estate market has been genuine in not a fluke prompted by inconsistent outside factors.
These trends make it clear; Traverse City is an area people are eager to live in.
Single homes in the area go so quickly to create a sense of urgency with buyers. Buyers are not only willing to close their sales quicker, but those that are able to are also willing to pay higher sale prices. This has been wonderful for sellers, especially those that have been waiting for market conditions to be ideal so they can sell their property. Knowing that a home can sell for more due to market conditions is great ammunition when it comes to deciding to take the plunge and sell.
What could 2023 bring?
Being aware of this consistent market success can strongly influence the way sales will go for the upcoming year. Buyers that are set on purchasing a Traverse City home will not be swayed by the higher prices if they are set on taking up residents in the area. If this is the case for the majority of buyers, the market will likely see no change negatively and, instead, only continue to increase as 2023 goes on. However, it is uncertain if the persistent desire to buy at higher prices will continue throughout the upcoming year.
It is possible that economic factors will impact the financial quality for at least a small percentage of home buyers. Factors like the down payment amount, mortgage rate, or a change in plans to buy in cash could be deterrence for buyers that were previously interested in purchasing at the higher prices that have been common this year. Depending on the financial and economic climate of the majority of buyers, market trends could begin to slow, and demand could quite possibly decrease at some point in 2023. Should this decrease happen, this will also impact the buyers that are still interested in purchasing because the lower demand would likely mean using market conditions as a way to negotiate a lower asking price than the seller originally listed.
With the acceleration the market has seen this year, it is highly likely that either scenario could play out due to the constantly changing cause-and-effect nature. However, the market has strengthened enough in 2022 to allow for either of these scenarios to take place without causing a severe market crash. A slow in the market would take place but not at a rate so jarring that buying a home in the area becomes unwise.
This is wonderful for both buyers and sellers as it offers a certain amount of ease. Knowing that regardless of which way the market
begins to lean in the upcoming year, things will maintain a positive outlook helps to keep buyers and sellers participating in Traverse City real estate. Whichever way the market swings in 2023, you will benefit from the support of an industry-leading realtor. Contact Robin Vilter
today to discuss your 2023 real estate future.