Real Estate Market Watch

Supply & Demand

 by Gerald Frendt       

The Port Huron Residential Real Estate Market is comprised of approximately 22,500 households in the Cities of Port Huron and Marysville, along with Port Huron, Fort Gratiot, Burtchville, Kimball and Clyde Townships. 

The National Association of Realtors defines a "Buyers Market" as a market where the supply of homes currently on the market exceeds the historical demand for homes by more than six months.  For example, if a market normally has 100 homes a month selling and there is more than 600 homes on the market, it would meet this definition.

By this definition the Port Huron Market for homes has been in a severe Buyers Market for more than two years, with an overall supply climbing from 6.3 months to twelve months, before receding to the current 11.1 months supply.  The current favorable trend is caused by having supply diminish by more than 100 homes during the last four months. This happened in spite of a decline in demand compared to the same time period last year.  Sellers took their homes off the market, letting the listings expire, without renewing or re-listing with another broker.  It is quite possible that these homes will come back to market in the spring, reversing the market again.

There is great variation, within the market, depending on price range, location, and various other factors. Evidence indicates that those homes priced over $200,000, are competing in a 15.9 months supply, while those priced under $200,000 have a 10.1 months supply. Our study breaks the market into twelve price ranges, and while there is great variation, nearly all would be classified as "Buyers Markets".

If selling, it is helpful to know how many buyers will likely "surface" during your time on the market, and how many homes you will be competing with for those buyers.  Your market strategy should take into account a price range of $10,000 to $25,000, with homes of similar location, age, size, and amenities.  Homes are still selling and the sellers who "know the market" have an advantage in attracting a buyer to their home.