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.