Four local real estate experts share what they’re seeing in housing markets across Northern Michigan right now.
This article first appeared in Traverse Northern Michigan. Find this story and more when you explore our digital issue library. Want Traverse delivered to your door or inbox monthly? View our print subscription and digital subscription options.
Realtor & Lead Agent Jon Zickert
The Jon Zickert Group | Beulah/Frankfort
Mortgage rates expected to ease. “Recently, mortgage rates have started to come back down. This has offered hope to buyers dealing with affordability challenges. According to The New York Times, ‘Federal Reserve officials left interest rates unchanged in their final policy decision of 2023 and forecast that they will cut borrowing costs three times in the coming year, a sign that the central bank is shifting toward the next phase in its fight against rapid inflation.’ This indicates the Fed thinks the economy and inflation are improving. Why does that matter to you and your plans to buy a home? It could end up leading to lower mortgage rates and improved affordability. Although mortgage rates may remain volatile, their recent trend combined with expert forecasts indicate they could continue to go down in 2024.”
The supply of homes for sale may grow. “As mortgage rates ease, activity in the housing market should pick up because more buyers and sellers who had been holding off will jump back into action. If more sellers list, the supply of homes for sale will grow, a trend we’ve already started to see in 2023.”
Home price growth should moderate. “Mortgage rates pulling back isn’t the only positive sign for affordability. Home-price growth is expected to moderate too, as inventory improves but is still low overall. To wrap it up, experts project 2024 will be a better year for the housing market. So, if you’re thinking about making a move, know that early signs show we’re turning a corner.”
Realtor & Associate Broker Ann Porter
Real Estate One | Randolph Street, Traverse City
Hope for first-time buyers. “A lot of first- and second-time home buyers are intimidated because they don’t have experience with the required work to update a home. However, improving paint, flooring, trim work and modern decor is one of the fastest ways a buyer can gain equity in a home. Quite often, homes that need some updating take longer to sell and usually get sold at a lower than asking price. Having some vision and a strong work ethic can go a long way when buying real estate.”
Waterfront will always be popular. “With so many beautiful waterfronts to choose from, buyers continue to buy up homes on the water—inland lakes, the bays or Lake Michigan. The area has been blessed with quality waterfronts that have been preserved from overbuilding, so those homes continue to be attractive to local and out-of-area buyers, no matter what the economy is doing.”
Broker & Owner Nikki Darrow
Big Lake Real Estate | Grand Marais
It’s still a seller’s market. “To my sellers, I let them know we are still in a seller’s market. Values are high and stability in pricing is a good thing—we still have a lot of buyers looking for their U.P. dream. To buyers, I say don’t give up and be patient and ready—the right property will come up for sale.”
New projects in Marquette. “Renovare Development [based in Detroit] specializes in homes for middle-income families. In Marquette, Phase 1 environmental assessments began in the fall for a new development,” Darrow says. It will feature 47 units of cottages, duplexes and townhomes in Marquette Township, geared toward providing housing for the “missing middle” workforce, such as teachers, nurses and police. Darrow also has her eyes on the Forestville residential project that has a targeted opening in 2024 with single-family homes and townhomes. Interested buyers can sign up for updates online: liveforestville.com.
Realtor Raquel Rae
Lighthouse Realty | Ludington
The cost of single-family homes. “In the market, single-family homes in central locations remain on the top of the priority list for those who want to move. Most of the homes that are still highest in demand are three-bedroom, two-bath homes that are in move in–ready shape. A large majority of buyers who are serious about their search and pre-qualified are those with federally subsidized loans like FHA, RD or VA. For these loans to finance, the big-ticket items within a home need to be in good working order, such as the roof, furnace, water heater, foundation, flooring, windows and electrical. Though this may not sound like a hard list to fulfill, due to demand, many of these homes have increased in price between $275,000–$425,000. With 3.5% down, this lands monthly payments between $2,400–$3,600 per month, demanding an income of roughly $85,000–$140,000 per year.”
… and how state-funded grants can help. “I would highlight that a lot of local municipalities, Ludington included, are applying for state-funded grants and working with community development partners to update single-family homes. The intention of these grants is to help maintain roofing, furnaces, energy-efficient windows and supplement additions if need be. If successful, this will help to create more quality living situations for current residents and increase value and finance-ability for future sales.”
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