A new year is like a rebirth; brimming with optimistic potential for fresh beginnings. At times it seems like we just rang in 2021, and at other times, with the pandemic still loitering near America’s doorsteps, it can feel as though we have been in the longest 24-month year of our lives.
Anyone working in real estate can attest that the same can be said for their industry. While 2020 brought forth a year of unexpected twists and turns, with staggeringly-low interest rates and an ever-shrinking inventory of houses for sale; 2021 certainly continued building upon that heightened momentum, creating unprecedented conditions for sellers.
This year saw a smaller inventory of homes on the market than the previous year, and buyer demand became increasingly competitive. This type of ultra-high demand from buyers oftentimes ignites bidding wars, which can result in homes spending fewer days on the market, as well as creating more opportunities for sellers to walk away from the closing table with higher profits from the sale of their homes.
We wanted to see how our four-county backyard of Northern Michigan fared during 2021’s market conditions, compared to recent years, and the numbers are (mostly) in:
Grand Traverse // Leelanau // Antrim // Benzie County (Combined performance)
|YEAR||TOTAL # OF SALES||TOTAL VOLUME SOLD||MEDIAN DAYS ON MARKET (DOM)||AVERAGE SALE PRICE|
•Based on December 23, 2021 projections.
This chart shows that Grand Traverse, Leelanau, Antrim, and Benzie counties combined, listed 175 fewer homes in 2021, while still yielding a staggering increase of $133,244,231 in total volume sold. Homes sold for an average of $66,748 more than they did in 2020; all doing so within a median days on market (or DOM) timeframe that was 14 days shorter than the previous year.
The four-county area saw home sales featuring deeded waterfront increase with $525,399,234 in total sales, an average sales price of $763,661 and 47 DOM. That’s an increase of $31,731,298 in total sales from 2020.
The total sales price for condos also increased with $186,894,977 in total sales, an average sales price of $299,991 and 43 DOM. That’s an increase of $44,884,428 in total sales from 2020.
Vacant land sales increased in 2021, with $201,241, 612 in total sales, an average sales price of $148,957, and a median DOM of 97. This is an increase of $86,583,907 in total volume sold, plus vacant land spent a median 74 fewer days on the market.
Grand Traverse County
Breaking these 2021 numbers down even further by county, projections show Grand Traverse County claimed $674,487,242 of the total volume sold this year, with a median DOM of 47 (2020 was 57), and an average sales price of $400,526.
This is a 1-year increase of $64,009 in the GT County’s average sale price, and a $97,023,949 increase in the total volume sold.
Leelanau County claimed $303,020,335 of the total volume sold, with a median DOM of 44 (2020 was 72), and an average sales price of $567,453.
This is a 1-year increase of $62,387 in the average sales price in Leelanau County, and an increase of $17,657,723 in the total volume sold.
Antrim County claimed $203,402,745 of the total volume sold, with a median DOM of 54 (2020 was 79), and an average sales price of $488,948.
This a 1-year increase of $113,527 in Antrim County’s average sales price, and an increase of $23,575,968 in the total volume sold.
Benzie County claimed $112,580,928 of the total volume sold, with a median DOM of 53 (2020 was 68), and an average sales price of $340,123.
This is an increase of $30,666 in Benzie County’s average sales price, whereas they saw a decrease of $5,013,109 in the total volume sold.
A recent National survey from NAR (National Association of Realtors) shows the US median home price in 2021 was $465,000 (projected when year closes Dec. 31). In 2020 the median home price in the US was $378,250. That’s a year-over-year growth of $86,750.
Additionally, Realtor.com revealed that only 7% of recent home sales in the US were FSBO (For Sale By Owner) sales this year. Nationwide, FSBO homes sold at a median price of $260,000 last year, which was signiﬁcantly lower than the median of agent-assisted home sale price of $318,000.
What Are Experts Predicting For 2022?
According to Danielle Hale, Chief Economist at Realtor.com:
“We expect a whirlwind 2022 for the housing market. Home sales are expected to increase another 6.6% and home prices to rise another 2.9% on top of 2021 highs. A gradual uptick in mortgage rates will make affordability a top consideration for home buyers, especially the 45 million Millennials aged 26 to 35 who are at prime first-time home buyer age. Demand from these young households will keep the market competitive and fast-paced despite a small uptick in housing inventory as builders continue to ramp up production, increasing single-family starts by 5% in 2022.”
The Chief Economist at Redfin, Daryl Fairweather, seems to agree, adding:
“After two years of unprecedented uncertainty in the housing market, we’re expecting 2022 to be just as unpredictable. We expect 30-year-fixed mortgage rates to slowly rise from around 3% to around 3.6 by the end of the year, mostly attributed to the pandemic subsiding and inflation continuing to linger. “
What About Brick & Corbett’s Numbers?
Our average sales price was $465,455 and our median DOM was 40.
Our team saw an incredible increase of $133,955 in our average sales price.
In addition to those stats, we dug a little deeper and found 2 data points that we feel even more fortunate to be able to report. Thanks to the support of our incredible clients, we feel humbled and blessed to reveal that The Brick & Corbett Team has received SEVENTY-THREE, 5-star Google reviews, which is 2-5 times higher than our top local competitors.
This brings us to the number from this year we are most excited to share: As of today’s date we’ve helped 195 families in 2021! That’s 33 more families than 2020.
The growing imbalance between buyer-demand and the shrinking inventory of homes created another record-breaking year in the real estate market. Coupling these factors with ultra-low interest rates, 2021 emphasized the highly-favorable seller conditions that were established in 2020, and experts are predicting more of the same in the coming year.
At Brick & Corbett we reflect fondly upon the last year with pride and gratitude, and are looking toward the new year with positivity and determination to help even more families obtain their homeownership dreams. If you are considering taking that step in 2022, we’d love to help. Contact us today to develop a plan that makes this your best year yet.