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Northwest Michigan Year-End 2021

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5-County Summary

635

2021 Closed Sales
+18% from last year

301k

2021 Avg Sale Price
+14% from last year

$220

2021 Price/SQ FT
+21% from last year

$191m

2021 Dollar Volume
+35% from last year

Monthly Activity

All

Q1Q2Q3Q4Total
Units148188151148635
Change47%114%-22%-4%18%
$/SF193207227259220
Change3%13%29%40%21%
Avg Sale Price$247k$293k$340k$327k$301k
Change-2%18%26%18%14%

$10k – $150k

Q1Q2Q3Q4Total
Units65754640226
Change33%97%-47%-40%-6%
$/SF121115119138121
Change-10%-7%7%35%6%

$150k – $250k

Q1Q2Q3Q4Total
Units64756367269
Change60%88%-16%20%27%
$/SF215205207265221
Change17%8%24%31%21%

$250k – $500k

Q1Q2Q3Q4Total
Units1217273086
Change50%143%50%30%54%
$/SF258260238275257
Change8%-17%-5%10%1%

$500k+

Q1Q2Q3Q4Total
Units721151154
Change75%600%15%38%93%
$/SF303365410438382
Change-10%33%15%27%12%

Although inventory levels were low all year, closed condo sales were up 18% compared to 2020. Average sale price jumped 14%, and looking at the chart above and the table to the left, recent fourth quarter prices and price per square foot held strong and did not take the year-end dip typically seen. 2022 began with half of last year’s inventory but demand remains intense—especially for higher-end units. Over-$500k sales nearly doubled last year and 56% of this year’s January new pendings were on the market for 10 days or less. Expect low inventory and frequent bidding wars to continue driving up prices through the first half of 2022.

5-County Waterfront Summary

653

2021 Closed Sales
-16% from last year

$792k

2021 Avg Sales Price
+30% from last year

$338

2021 Price Per SQ FT
+27% from last year

$517M

2021 Dollar Volume
+9% from last year

Monthly Activity

All

Q1Q2Q3Q4Total
Units103185201164653
Change18%75%-39%-37%-16%
$/SF286326370348338
Change30%50%31%25%27%
Avg Sale Price$724k$765k$839k$809k$792k
Change46%60%37%17%30%

$10-$350k

Q1Q2Q3Q4Total
Units26473634143
Change-28%-6%-61%-60%-46%
$/SF150174185202178
Change10%22%22%29%19%

$350k-$600k

Q1Q2Q3Q4Total
Units28465748179
Change0%64%-45%-24%-20%
$/SF224222230213222
Change14%8%-7%-2%-2%

$600-$1m

Q1Q2Q3Q4Total
Units30515644181
Change114%143%-34%-29%-1%
$/SF278323373347334
Change-3%41%28%22%19%

$1m+

Q1Q2Q3Q4Total
Units19415238150
Change111%486%13%-25%33%
$/SF403459507503477
Change28%0%19%33%21%

Through most of last year, inventory levels were about one-third of what they were the previous year. The listing shortages combined with extreme buyer demand created bidding wars that drove the average sale price up 30% from $607k in 2020 to $792k in 2021. Prices skyrocketed in the spring before falling back off in June. The drop had nothing to do with declining values, but rather, the drop in inventory quality as most of the best 2021 listings sold immediately when listed—nearly half of last spring’s sales were on the market for 10 days or less. Current inventory levels are even lower and demand just as high as last year. Expect similar activity and price patterns this spring.

 

5-County Non-Waterfront Summary

2,066

2021 Closed Sales
-4% from last year

$335k

2021 Avg Sale Price
+19% from last year

$181

2021 Price Per SQ SF
+23% from last year

$693M

2021 Dollar Volume
+15% from last year

Monthly Activity

All

Q1Q2Q3Q4Total
Units3425006265982,066
Change-14%43%-14%-10%-4%
$/SF161180188188181
Change21%29%24%21%23%
Avg Sale Price$300k$332k$346k$347k$335k
Change26%22%19%14%19%

$10-$200k

Q1Q2Q3Q4Total
Units10589115115424
Change-35%-28%-48%-40%-39%
$/SF109116118119115
Change4%6%12%19%10%

$200-$350k

Q1Q2Q3Q4Total
Units137238276247898
Change-20%52%-14%-12%-4%
$/SF162171171170169
Change19%25%19%12%18%

$350-500k

Q1Q2Q3Q4Total
Units59104132142437
Change18%126%6%26%31%
$/SF172194196195192
Change18%42%19%17%21%

$500k+

Q1Q2Q3Q4Total
Units416910394307
Change193%200%66%19%72%
$/SF196215237238226
Change-5%0%13%20%10%

Extreme buyer demand continues to outpace supply. 2020 supply levels were half of what they were the previous year and current levels are just two-thirds of what they were last year. Last year’s average sale price was up 19% compared to 2020 and price per square foot was up 23%. As seen in the chart above, multiple-offer buyer competition drove price per square foot up 26% between January and July. Prices leveled and competition faded slightly as many of the year’s best listings were sold off. 58% of June sales were on the market less than 10 days and average market time was just 24 days. Expect similar sales and price patterns through the first half of 2022.

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