Petoskey Real Estate Market Slows - Prices Remain Stable

Sales in the Petoskey Real Estate Market slowed considerably in 2005. Despite the slowdown in sales, prices remained remarkably stable. Sales volume measured by residential units sold sank to 260 units in 2005 from 326 units in 2004, a decline of over 20%. This number compares with 294 units in 2003 and 291 units in 2002. Sales measured by total dollar volume shrank from $95.5 million in 2004 to $77 million in 2005, a similar decline of almost 20%.

Despite the depressing sales figures, prices remained stable. The median home price actually rose from $180,000 in 2004 to $195,000 in 2005, a gain of over 8%. This continues an upward trend which saw a median home price of $176,000 in 2003 and $170,000 in 2002. The average price of a home also increased, from $292,882 in 2004 to $296,245 in 2005. In another sign of price stability, the sales price to list price ratio remained stable at 92.78%, compared to 93.37% in 2004, 92.7% in 2003 and 92.4% in 2002.

Interestingly, only 31.82% of the number of homes listed in 2005 sold, a huge drop from 2004, when 57.8% of the number of homes listed sold. In 2003 73.5% of the number of homes listed sold and in 2002 an incredible 92.09% of the number of homes listed sold. These percentages are reflective of both a weakening in demand and a large increase in inventory. The number of residential units listed in 2005 shot up almost 45%, from 564 in 2004 to 817 in 2005. This compares to 400 listings in 2003 and 316 listings in 2002.

NOTE: Based on information from the Northern Michigan MLS for the period from January 1, 2002 through December 31, 2005.