The first month in which a milliondollar home sale in Leelanau County is considered “average” may be a ho-hum moment in the statistical world, but it nonetheless shows a continuation of high demand for high-end homes.
“We’re still in a very bullish time here, especially on the upper end of the market,” said Rob Serbin, owner of Serbin Real Estate in Glen Arbor. “Inventory levels are pathetically low.”
As of last week only four homes were listed for sale on Glen Lake. “Back in the day we would have 15 to 20, and people would be closing deals in September as the season wound down. Now there is squat to buy,” Serbin continued.
Which helps explain the million-dollar average home sale figure for August. It was an anomaly, the result of having 13 home sales at or above $1.1 million out of 42 total sales in the county.
But it’s more than the sheer number of very high-end sales skewing the numbers. It’s the enormity of a handful — five, in fact, that sold for $2.5 to $4.2 million. The highest-valued sale was made on Dalton Shores Road fronting on north Lake Leelanau; a $3.9 million sale was made off West Day Forest Road on little Glen Lake.
Shortly after the sales figure for August was released by Aspire, the multi-listing agency for the five-county area that includes Leelanau, communications director Michael Kent responded to media inquiries about a “dramatic increase in the average sale price of homes in Leelanau.”
Per Kent, “While we have always provided both average and median sales prices in our monthly statistics, we — along with the housing industry at large — use the median sales price as a more accurate indicator of market conditions. The average sales price is easily skewed by extreme outliers, particularly in small data sets like the 42 homes sold in Leelanau last month.”
For its coverage the Leelanau Enterprise relies on the median average, which lies in the middle of the dataset and represents the actual price of a home that sold.
The median price, in fact, slipped a bit over the past year, hitting a record for August in 2023 at $675,000 and falling to $639,500 last month. That’s good but somewhat subdued news for most home buyers — subdued because home prices remain well above historical averages, and because the sales number is the smallest since 2013. That’s a reflection of having so few homes listed rather than a lack of demand.
The Glen Lake sale stood out to Serbin.
“The second highest sale on that list was $3.9 million, and that was on the north shore of little Glen. We have never had a home on little Glen sell for that amount. I call it the national park effect. There is so little private land that it brings the value up — the scarcity of supply versus demand,” he said.
Leelanau County home sales through August are their second- highest ever and within striking distance of setting a new record. Some $42.5 million in transactions were recorded, up nearly 25 % from the $31.7 million in sales during the same period in 2023.
During the first eight months of 2024, real estate agents have notched $191 million in sales over 230 transactions — well ahead of the 2023 pace of 229 sales for $168.8 million. The record pace was established in 2021 with 359 homes selling for $203.1 million.
Nationally,, home sales slipped 2.5% in August despite falling mortgage rates, according to statistics kept by the National Association of Realtors.
Former construction worker Serbin traded hammer for real estate contracts 27 years ago. He earned a broker’s license in the early 2000s, and established Serbin Real Estate in February 2008.
His enthusiasm for the business hasn’t waned.
“Oh, heck ya,” he said about enjoying his work. “I’ve never wanted to be the biggest, baddest and busiest person who has all the listings. I want to have some fun with it. When you walk out of a closing and people are smiling, you’re done your job,” he said.
