$400,000 Isn't What it Used To Be: How Short Supply and Inflation Impacted Michigan Home Prices
- Kevin Peake
- Jul 27, 2023
- 3 min read
Have you felt like the home next door has sold high above your expectation. There is no doubt prices have gone up and up and up in Michigan. In this post we will go back in time to compare the value of $400,000 in Michigan's housing market. We'll analyze 2 different years, 2020 and 2023, to gain a view into how much you can get in some markets today and what you could have bought previously. Join me as we uncover the changes and trends that have shaped the housing landscape over the years, and how they have influenced the houses you can get for $400,000.
How I am going to present this to you today is by showing Zillow listings for homes that sold in 2020 and then homes that sold in 2023 at as close to $400,000 as I could find in the Zillow data. Then we will see the differences in the amenities, size, and location of these homes.
*One disclaimer I am going to add here is that this was difficult to find exact comps for the homes shown here. So I understand these will not be perfect but I think it is a good exercise to go through to show the pricing expansion.*
The Data: Grand Rapids and other MI metros have seen significant growth in price year over year since 2020. Grand Rapids specifically has seen a 40% increase in median sale price since 2020.
Grand Rapids Listings:
2020
Sale Price $400,000
Current Zestimate $686,900
Address: 300 Hodenpyl Rd SE, East Grand Rapids, MI 49506
Quietly tucked away in one of East Grand Rapids' most coveted pockets, just 300 ft away from the Reeds Lake Trail, sits this spacious 5 bed, 4 full bath, meticulously-maintained home.
2023
Sale Price $400,000
Address: 50 Baltimore Drive NE, Grand Rapids, MI
Beautiful home in the desirable Marywood area and Maryland Estates. Walking distance to East Grand Rapids, Gaslight Village, and Reeds Lake. Complete with 3 bedrooms and 2 bathrooms. New Roof in 2021.
Analysis: We can see the differences here are pretty significant. 1 less bedroom, smaller space, further away from Reeds Lake.
Traverse City Listings:
2020
Sale Price $400,000
Current Zestimate $571,800
Address: 4810 Wyatt Rd, Traverse City, MI 49684
Beautiful private setting at this 5 bed, 2.5 bath exquisite west-side home in Woodland Hills subdivision. 2,600 square feet and amazing location- minutes from The Commons, downtown, and shopping district, and essentially next door to the YMCA.
2023
Sale Price $400,000
Address: 146 E 15th St, Traverse City, MI 49684
Central Neighborhood classic, live the walkable lifestyle to all of TC's restaurants, stores & events. 4 bedrooms and 2 bathrooms with 1500 sqft.
Analysis: Our 2020 home in this example is significantly larger, has a big yard, an extra bedroom, an extra bathroom. No doubt here that 400,000 doesn't go as far.
Rochester Hills Listings:
2020
Sale Price 400,000
Zestimate 503,800
Address: 1026 Covington Place Dr, Rochester Hills, MI 48309
Well maintained and freshly painted 4 bed 2.5 bath home in Rochester Hills Covington Place Subdivision. Located in Rochester School District. 2,740 square feet.
2023
Sale Price 400,000
Address: 141 Sandalwood Dr, Rochester Hills, MI 48307
Welcome to this beautiful open concept Ranch home in Rochester hills, featuring 3 spacious bedrooms, 2 1/2 baths, vaulted ceiling with a fan in the great room, a kitchen with breakfast area plus dining area. 1,732 Square feet.
Analysis: The first house is basically a mansion in a great neighborhood and has great curb appeal while with 400,000 in 2023 you would have to settle for the smaller home in Sandalwood.
Well there you see it home prices have increased significantly due to the short supply, high demand from buyers, and high inflation rates. Whether you are looking to buy a home for an investment to hopefully catch more of this appreciation or a first time home buyer just hoping to get your first home I hope this post helped demonstrate the real price changes in the last 3 years.
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