Second quarter 2024 sales statistics, ending June 30th, showed that the average sales price of Lansing area homes increased 10.9% from $235,475 at the end of the second quarter of 2023 to $261,087. This represents an average home value improvement of $25,612.

The fact that there were 131 fewer sales so far in 2024 (-4.8%) represents a lower number of homes being offered for sale with established homeowners reluctance to give up a 3.5% mortgage in order to enter into a now 6.78% mortgage on a different home.

The increase in home value indicates strong buyer enthusiasm by those moving into the Lansing area and those able to adjust to higher mortgage rates. First time home buyers have been hit hard with the increased interest rates and home insurance that require budgeting changes and higher down payments. Local lenders and the State of Michigan’s MSHDA program have offered relief with mortgage incentives that accommodate lower income buyers.

First Quarter 2024 Sales Statistics

Snapshot of current Lansing area sales entering into the Spring selling season:
Lansing Area Market View –August 1, 2024
634 – currently listed homes for sale in the five county greater Lansing area.
 285 – homes with accepted offers. (Awaiting inspections and/or appraisal.)
 345 – homes listed as Pending. (Have completed inspections and will soon close.)
 3012 – homes that have closed since January 1, 2024. 

Current Mortgage interest rates 
  30-year fixed – 6.77% ($6.49 per $1000)
  15-year fixed – 6.44% ($8.47 per $1000)

First quarter 2024 sales statistics showed that the average sales price of Lansing area homes increased 13.8% from $217,376 at the end of the first quarter of 2023 to $247,308. This represents an average home value improvement of $29,927.

The fact that there were 121 fewer sales so far in 2024 (-11.1%) represents a lower number of homes being offered for sale with established homeowners reluctance to give up a 3.5% mortgage in order to enter into a now 7.17% mortgage on a different home.

The 13.9% increase in home value indicates strong buyer enthusiasm by those moving into the Lansing area and those able to adjust to higher mortgage rates. First time home buyers have been hit hard with the increased interest rates that require budgeting changes and higher down payments. Local lenders and the State of Michigan’s MSHDA program have offered relief with mortgage incentives that accommodate lower income buyers.

First Quarter 2024 Sales Statistics

Snapshot of current Lansing area sales entering into the Spring selling season:
Lansing Area Market View –May 1, 2024
 436 – currently listed homes for sale in the five county greater Lansing area.
 258 – homes with accepted offers. (Awaiting inspections and/or appraisal.)
 381 – homes listed as Pending. (Have completed inspections and will soon close.)
 1454 – homes that have closed since January 1, 2024. 

Current Mortgage interest rates 
  30-year fixed – 7.17% ($677 per $1000)
  15-year fixed – 6.44% ($868 per $1000)

The spring home-buying season has begun, and it’s business as usual. The combination of high mortgage rates, and home prices, along with low housing inventory means that home buyers will have to adjust to the reality of elevated home prices and mortgage rates if they want to buy a home in the near future.

Will there be a significant change in the 2024 housing market?
There has been discussion about rates dropping a percentage or two, but a 6% loan isn’t going to push current home owners into giving up a home with a 3.5% mortgage. Perhaps 5% will look attractive to first time home buyers…but would you give up your 3.5% mortgage to move in this competitive market?

Of course, lower mortgage rates would stimulate sales…but also drive up property values as it did during the years of 3% and 3.5% loans. Armed with affordable loans, buyers will need to make  competitively high offers to land a home in a market with low inventory.

Snapshot of current Lansing area sales entering into the Spring selling season:
Lansing Area Market View – April 1, 2024
 418 – currently listed homes for sale in the five county greater Lansing area.
 249 – homes with accepted offers. (Awaiting inspections and/or appraisal.)
 325 – homes listed as Pending. (Have completed inspections and will soon close.)
 982 – homes that have closed since January 1, 2024. 

Current Mortgage interest rates 
  30-year fixed – 6.79% ($651 per $1000)
  15-year fixed – 6.11% ($849 per $1000)

Fourth quarter sales statistics (October – December) shows that the average sales price of Lansing area homes increased from $214,161 to $229,554 during the twelve months ending on December 31, 2022. This 7.2% growth represents an average home value increase of $15,393.  (These figures include all sales throughout the Greater Lansing Association of Realtors.)

 Check out our Fourth Quarter 2022 Sales Statistics Link (below) for an update of sales activity by community. (Please note that pending sales, properties under contract that have not yet closed, are not factored into these statistics.)

Fourth Quarter 2022 Sales Statistics

Interest Rates
The overall number of home sales is 864 units lower than at the close of 2021. This 11.5% drop was due to a sudden change in buyer purchasing power when mortgage rates suddenly escalated from below 3.5% to 5.8% in June. Rates went as high as 7.3%, finally finishing at 6.42% by year’s end. Many buyers, suddenly unable to purchase the home they had been shopping for, just walked away.

Financially, borrowing $200,000 in April 2022 at 3.5% would have produced a monthly mortgage of $898. The same $200,000 mortgage at 5.81% (end of June) cost a buyer $1175, an increase of $277 in the monthly payment.  A mortgage loan at 6.42% results in an increase of $368.

As we enter 2023
Owning is still less expensive, and more satisfying, than renting. Recent sales, and January open house activity has demonstrated that buyers are adjusting to the cost of home ownership at mortgage rates similar to what they were twenty years ago, when the market was booming.

There’s evidence of another strong seller’s market as we move into February 2022 with not nearly enough listed homes to satisfy buyer demand.

This is typically what happens when a fairly priced home is offered for sale through the real estate Multiple Listing Service.  Photos and details about the property are immediately made available on every listing service (Zillow, Realtor.com, BHHS, etc.) across the country. Buyers who have asked to be notified, are automatically alerted, and real estate agents arrange immediate showings.  Within a few days, the seller selects one from the multiple offers that have been presented, leaving the remaining buyers to wait for another home to become available.  This has become a way of life in a market with low housing inventory.

Market  View – January 30, 2022
• 440 currently listed homes for sale in the five county greater Lansing area.
• 271 homes have accepted offers. Awaiting inspections and/or appraisal.
• 351 homes are listed as Pending. Have completed inspections and will soon close.
• 7479 homes have closed in the past 12 months.

Mortgage interest rates
30 year fixed – 3.55%
15 year fixed – 2.8%

The number of available homes for sale typically decreases in the months of November and December, but this year’s current inventory is lower than what has been considered normal.  According to sources that keep track of housing statistics, the number of active listings on November 28th showed a 23% decrease compared to the same time period in 2020 and a 42% drop compared to 2019.

Even with the weather getting colder, the demand for homes will remain strong. New listings added through the months of January and February won’t increase the inventory significantly as these will likely sell quickly to buyers hoping to avoid competition during the annual spring surge which in early spring.

Those expecting a market crash that will soon end the current seller’s market should decide if they want to be homeowners or renters. Low housing inventory and mortgage rates at less than half of what they were fifteen years ago will continue to drive the annual multiple-offer frenzy we’ve witnessed each spring for the past eight years.

The Lansing area real estate remains an active seller’s market with enthusiastic buyers jumping on new listings in spite of the traditional holiday slowdown. With limited choices, newly listed homes continued to receive acceptable offers within a few days.

Sales and Inventory of Residential Homes as of December 28^th
496 currently active listings. (Entire Lansing area market area)
273 homes with accepted offers.
392 homes pending a closing date.
7452 homes have closed in the past twelve months.

Mortgage Rates at 3.05%
3.05% is the current 30 year interest rate closing out December.  This monthly mortgage payment will cost a buyer $4.24 per each thousand of borrowed money.
($100,000 mortgage = $424 monthly payment)