Michigan's population continues to shift from major metro areas to nearby suburbs. The top three growing cities on our list for 2023 are all in west central Michigan in the Grand Rapids area. The rest are spread across the state. Here's a closer look at Michigan real estate trends for 2023.
Fastest Growing Real Estate Markets in Michigan 2023
So, which cities are growing the fastest in Michigan for 2023? Here are the top seven.
1. Grand Rapids
Grand Rapids is one place bucking the trends. In fact, USA Today ranked Grand Rapids as the 7th hottest real estate market in the country for 2023 — one of only two Midwest cities on the hot list. The median price for a home in Grand Rapids at the end of 2022 was $358,000, and home prices are expected to increase by another 10% in 2023.
According to Rocket Homes, 44% of homes selling in Grand Rapids are still selling for more than the asking price.
2. East Grand Rapids
East Grand Rapids is one of the state’s richest cities and is consistently ranked as one of the best U.S. cities to live in. Although home to less than 12,000 people, the typical home price here is $601,000, and prices and activity continue to rise.
Wyoming — the city, not the state — is another fast-growing market. Wyoming, Michigan, borders Grand Rapids and is home to more than 76,500 people. The median listing price for homes is $224,900, up more than 17% year-to-year.
4. Traverse City
Traverse City is in the northern part of the state with access to Traverse Bay and Lake Michigan. The median listing price for homes is $449,000. Although the average home sold for $350,000 in 2022, homes are selling at 97.37% of their asking price. That's great news for realtors, as it looks like Traverse City agents will continue to make the most of anywhere in the state.
5. Dearborn and Dearborn Heights
Despite people moving out of the city of Detroit, two of its suburbs, Dearborn and Dearborn Heights, are seeing significant growth in population. Population growth in the past few years has topped 12%, and home prices are well below state and national averages. Typical home values are $216,000, rising from $153,000 in 2020.
6. Macomb Township
Macomb Township is located 26 miles north of Detroit and has shown considerable growth within the past decade. The population grew by 15% to 91,663. Home prices grew by 7% in the past year to reach a median sales price of $402,000. Homes sell quickly here. The average time on the market for homes was just 25 days.
Home to more than 66,000 residents, Novi has a competitive market. Its population grow by more than 20% since 2010. While home prices dropped by 8% in December 2022 compared to the same time in 2022, median sales prices topped $420,000 and are selling in about 21 days. Redfin reports that well-priced homes are selling about 1% above list price and go to pending status within seven days.
2023 Michigan Real Estate Trends
Overall, the nationwide 2023 housing market is predicted to cool off. But here's how we think Michigan specifically will fare.
Home Prices Will Keep Increasing in Metro Areas
The average sales price in Michigan was $265,911 at the end of Q3 2022, according to the Michigan Realtors residential sales report. That’s an increase of more than 9.6% compared to 2021.
While the Michigan housing market is cooling, none of the metro service areas in Michigan are expected to show declining sales prices in 2023. Even Detroit, which has seen a significant outmigration is forecast to increase home values by 2.1%.
Home Sales Will Slow Down
Sales slowed in the second half of 2022 as interest rates spiked, similar to activity in most states. While home sales have been brisk since 2020, sellers are no longer seeing multiple offers over the listing prices as in years past. Prices are now generally selling below the asking price, and sellers are doing price reductions as well.
More Residents Will Leave Michigan
Michigan is also seeing more people moving out of state than moving in. United Van Lines lists Michigan as number four in the country when it comes to outbound movers. Still, there are plenty of opportunities for real estate agents in Michigan. Compared to national trends, homes are still affordable.
The Bottom Line
Michigan real estate agents are cautious, but optimistic, for 2023. There are still plenty of opportunities to make a good living helping people buy and sell homes. If you’re interested in a lucrative career as a real estate agent in Michigan, learn more about Aceable’s online pre-license real estate courses to prepare you to get your agent license.