by Luke Bouman
on Wednesday, February 5th, 2014 at 6:04pm.
The # of luxury homes available in Southwest Michigan is up 6% this year compared to the same time last year. In the graph above a luxury home is classified as any home listed above $500,000. In July of 2013 West Michigan topped off at 150 luxury homes currently on the market and based on last years results after February we will see a gradual incline of new Luxury Home Listings. Over the last year there have been nearly 75 luxury home sale. Many of these luxury homes are located on or near Lake Michigan. Where we see the most activity is in the months of July, August and September and that likely will continue into 2014.
The chart below shows some interesting information about the Luxury home Market. The Bar graphs show the average days on the market for the sold properties. For example in December the average Luxury home that sold was on the market for 237 days and the month previous was 179 days. Since August of 2013 the average days on the market for these sold homes has been relatively low compared to the previous year proving that these homes are starting to move quicker. The other number on the graph below shows that average list price to sale price for these luxury homes. Due to the large inventory numbers to sell a luxury home in the area you may have to take a hit on your list price. The last 3 months of the year had List price to sale price ratios of 87%, 83% & 85% which means in December if you had your home listed at $1,000,000 on average it sold for $850,000. Does that mean that you aren't going to get what you want for your home, no? It may just mean you need to price it more aggresively and be realistic about what you can sell your luxury home for. The benefit of selling now and also purchasing is that there is a large selection of luxury homes making it easier to find just the one you would like at a great price. For All West Michigan Luxury Homes questions please contact our team at #616-502-8897.