Following Market Trends

Workable tools describe the M-72/US-31 Corridor.

Starting along M-72, a westbound road off I-75 headed to Traverse City, and continuing up the Lake Michigan shore along US-31, this area includes both new and established communities near popular seasonal attractions. With examination of key trends and listing data, a discerning observer can assess the local markets. The following chart, containing data from the two multiple listing services used in the region (Northern Michigan MLS and Northern Great Lakes MLS), compiles such statistics for the counties within this corridor.

• The number of closed sales, when compared to current listings, provides a measure of supply and demand. 
• Calculation of sales prices to a dollar per square foot gives an indication of whether prices are stable, rising or falling; agents tell me they break this down into price ranges, as a $500,000 home has more detail and custom finish than a $200,000 home. 
• The ratio of sales price to list price measures the difference in market expectations between buyer and seller. 

• Changes in Days on Market captures both the inventory status (buyers move quickly when they have few homes to choose from) and pricing expectation (ambitious asking prices may result in a longer sales period, with  eventual price reductions to entice buyers).

These guidelines serve as useful analytical tools to ferret out market trends. The county-wide data above produces substantially differing scenarios for the various regions of this corridor, and analysis of neighborhoods within each county will discover pockets of strength and weakness. "Better prep" means getting to know these tools and applying them to the real world meaningful to you.