From higher-than-normal interest rates to extreme buying competition, record-breaking sales prices, creative financing options, and more, the real estate markets of 2021 and 2022 were chaotic for buyers and sellers alike. 

Welcome, 2023. As the first month of the new year has ended, here’s a performance snapshot of the greater Lansing housing market:

Closed Sales

While home sales are historically slow the first two months of the year before making a natural increase, at 249 closed sales for January 2023, real estate transactions weren’t just low – they sank to their lowest levels in three years. 

Home sale volume has followed a consistent seasonal pattern for the past few years, with sales peaking in the summer months before making about a 40% decline through January. 2022 saw the year’s highest sales numbers in June (565) before sales tumbled about 56% to close out January. 

New Listings

You may have noticed fewer ‘for sale’ signs as less homes have become available over the past few months. While January boasted a 27% rebound from December in total new listings brought to market, 2023 numbers are down around 22% from January 2022. 

Median Sales Price

While the number of new homeowners hit a low in January (as referenced above), the going rate of homes on the market stayed relatively consistent. With a median sales price of $171,000 last month, that price tag reflects just a 2% dip from January 2022.

A notable price decrease came month-over-month from December 2022 to January 2023. The median sales price in December was around 13% higher, at $196,000. 

In addition, after price per square foot peaked in June 2022 at $132, prices have since dropped to their lowest level since February 2021, at $108.

Median Days on Market

After a 90-day span from August to October when the median days on market was 11, time-on-market has been steadily increasing, hitting 26 days in December 2022. In the new year, this timeframe dropped three days, coming in at 23 days on market for January 2023. Prior to December, the greater Lansing area hasn’t experienced median days on market longer than 20 days since February 2020.

This could be good news for buyers who may have been outbid, or who couldn’t compete in multiple offer situations, as longer days on market is one indicator of waning competition.

Active Inventory

Seasonal trends routinely show less inventory during the winter months, and January was no exception. The first month of 2023 saw fewer active listings than each month of Q4 2022, and roughly 2% fewer listings than the same timeframe last year. In addition, 45% of all active homes in the greater Lansing area were in Lansing and East Lansing.

Whether you’re thinking of buying or selling, the Greater Lansing Association of REALTORS is here to help. Visit lansing-realestate.com to connect with a local agent who can help guide you through local market conditions.