February 2024 Upper Michigan Newsletter

Author

Adam Taivalkoski
February 29, 2024

This month, I conducted a comprehensive analysis of all single-family homes sold in Houghton County throughout 2023 to assess appreciation trends.

A total of 277 sales, as reported by local agents utilizing the database, were considered in this study. It is important to note that 81 sales were omitted due to the unavailability of accurate purchase prices or instances where the property was acquired at no cost.

It's crucial to highlight that this analysis does not incorporate the various costs associated with property ownership, such as maintenance, remodels, utilities, property taxes, insurance, and mortgage interest. Additionally, the study does not exclude data from property flips. Examining median statistics helps mitigate the impact of outliers.

For those who sold their homes last year, the average rate of return was an impressive 52%. The median appreciation rate remained noteworthy at 16%.

Homes constructed by owners or built as spec homes were also excluded from the analysis. For homes with a single owner or no owner (spec homes), the median sales price was $405,000, and the median construction year was 2012. Here is a breakdown of these homes.

Here's a snapshot of sellers who made their purchase between 2013 and 2022: most sellers experienced very favorable outcomes.

Year Purchased

Avg % Appreciation/Year

Med % Apprecation/Year

Avg $ Gain/Year

Med $ Gain/Year

2022

149.47%

30.83%

$65,214.22

$44,500.00

2021

173.99%

16.60%

$27,401.32

$17,000.00

2020

44.41%

20.08%

$35,072.02

$27,666.67

2019

21.56%

15.49%

$21,484.38

$18,000.00

2018

17.07%

16.55%

$13,543.33

$11,010.00

2017

22.99%

18.59%

$17,421.60

$14,647.50

2016

19.58%

18.59%

$21,298.70

$14,214.29

2015

17.77%

17.08%

$15,239.58

$14,125.00

2014

19.58%

5.46%

$6,234.78

$3,173.89

2013

17.72%

10.84%

$9,228.75

$8,770.00

Interestingly, the median duration of homeownership for the properties analyzed was only 6 years. This data paints a compelling picture of the real estate landscape, indicating positive returns and substantial appreciation for homeowners in Houghton County.

Here is a more in depth review of the data