Michigan Home Prices Highest Since 2003

I have been on the home search for about 4 months. It's rough out there. I realize there has been a pandemic affecting availability and prices but I keep thinking that even with that influence, the prices seem extra high.

According to real estate data company Realcomp, in June, Michigan had the highest median sales prices ever recorded in any month dating back to 2003.

The median home price has jumped by over 18% in the past year. Michigan's average home price is $244,000. Last week marked the 50th straight week of double-digit price growth.

Michigan is not trendsetting as the national median home price has increased by 10.3% in the past year. Typically home sales take a dip in September as school begins. Some buyers have fatigue, but a significant statistic shows how quickly homes are moving from listed to pending. Almost half, 47%, of the houses that went on the market were off the market within the same month. The housing market might take a seasonal dip but it's not long term.

Gay Cororaton, senior economist and director of housing and commercial research for the National Association of Realtors told Mlive,

"Buyers are kind of caught between this low mortgage rate environment, which is leading to lower monthly mortgage payments, but at the same time you see prices rising."

She added some advice,

"If you can buy now — you have the down payment now — then buy now."

About 23% of buyers are making cash offers and more than half of buyers are offering more than 20% of the down payment. Cororaton added it will take about 10 to 20 years to build up the supply needed to meet demand. Research indicates millennial homebuyers will spend more than their parents on their first home.