It’s still a hot residential real estate market, but it’s not as hot as it was. That’s the overview in our exclusive MoodyOnTheMarket.com monthly review of residential real estate sales and listings, in cooperation the Southwestern Michigan Association of Realtors.
Fewer houses sold in September than last year, because there were fewer on the market, as has been the case for much of 2021. However, prices continued to inch upward and sale prices remain at record levels.
Here are key excerpts from the Realtors’ analysis:
The SWMI housing market sales dropped 23 percent in September. This makes three consecutive months that sales have fallen more than 19 percent below sales from last year. Selling prices made moderate increases in September and year-to-date. Selling prices in September set records when compared to previous years. The overall market continued to do well even with the inventory of houses for sale dropping over 20 percent per month since June.
In September, 398 houses were sold, compared to 518 houses sold in September 2020, for a 23 percent decrease. Sales in September were slightly higher than in August (398 vs. 388).
Year-to-date, the number of houses sold at the end of September was 2895, up 6 percent over September 2020 (2895 vs.2721). At 2895house, September set a new sales record in the year-over-year sales records since 2006. For the last nine months, the year-to-date sales have set records over previous years.
After selling prices in August declined slightly for the first time in 2021, selling prices in September were up slightly. Selling prices for the month and year-to-date surpass prices in 2021.
The median selling price in September 2021 rose 5 percent to $230,000 from $220,000 in September 2020. Year-to-date, the median selling price climbed 7 percent ($225,000 vs. $210,000). The year-to-date median selling price also set a new record price in the month of September in the year-over-year comparison.
The median price is the price at which 50% of the homes sold were above that price, and 50% were below.
The inventory of houses for sale fell 20 percent from a year ago (922 vs. 1156), bringing the inventory of houses for sale to a 3.4-months supply of inventory available for buyers. The inventory level in August was also at 3.4-months supply. For comparison, back in September 2009 during the Great Recession, there were 3757 houses for sale and a 17.3-months supply of inventory.
There were three bank-owned or foreclosed homes as a percentage of all transactions in September. In January, the rate was 4 percent, the highest rate for the year. The previous lowest percentage in September was 1 percent in 2020. The highest percentage in September was 37 percent in 2009.
Nationally, the Freddie Mac mortgage rate in September was 3.01, up slightly from 2.87 in August for a 30-year conventional mortgage.
This data reflects home sales across Allegan, Berrien, Cass, and the westerly 2/3 of Van Buren Counties and should not be used to determine the market value of any individual property.
To view properties that are for sale in your local area, go to www.swmar.com, and click on “Search”. The Southwestern Michigan Association of REALTORS®, Inc. is a professional trade association for real estate professionals who are members of the National Association of REALTORS®, and ancillary service providers for the real estate industry in Allegan, Berrien, Cass, and Van Buren Counties. The Association can be contacted at 269-983-6375 or through their website at www.swmar.com.
