For a period of months, residential real estate sales in SW Michigan have beenlagging behind last year, and prices have been lower as well. However, in May’s analysis, there may be signs of a modest recovery taking shape. Both the average and median selling prices of homes increased in May, suggesting some optimism on the part of buyers.
Here is our exclusive MoodyOnTheMarket.com ‘ early look’ at those numbers, tracked by the Southwestern Michigan Association of Realtors:
Sales began to bloom in May, helping to start the peak selling season in a more robust direction than the first quarter of 2023. Sales were down for the fifth consecutive month when compared to 2022. However, the average and median selling prices in May set records in the year-over-year comparison, increasing by double digits over last year.
In May 2023, the number of houses sold still lagged behind May 2022 (256 vs. 313), for an 18 percent decrease. Year-to-date, 995 houses were sold, compared to 1198 houses in May 2022, for a 17 percent decline in sales.
The inventory of houses for sale was also behind the level available a year ago (703 vs. 721). However, with lower sales volume, the months supply level increased slightly to 3.9 from 3.1-months supply from a year ago for buyers. For comparison, during a recession in May 2010, there were 3602 houses for sale for a 16.4-months supply of houses for homebuyers.
The average selling price in May 2023 was $401,016 compared to $336,015 in May 2022, for a 19 percent increase. Year-to-date, the average selling price in May 2023 slipped 3 percent from May 2022 ($330,498 vs. $339,743).
The median selling price in May 2023 at $280,500 rose 12 percent from $250,000 in May 2022. Year-to-date, the median selling price decreased by $5,000 ($240,000 vs. $235,000).
The median price is the price at which 50% of the homes sold were above that price and 50% were below.
The total dollar volume in May 2023 dipped 2 percent compared to May 2022 ($102,660,128 vs. $105,172,830). The year-to-date total dollar volume dropped 17 percent ($328,871,978 vs. $395,033,091).
The number of bank-owned or foreclosed homes as a percentage of all transactions decreased to 2 percent from 3 percent in April. The previous lowest percentage was 1 percent in May 2022 and 2021, and the highest percentage in May was 34 percent in 2009.
The Freddie Mac mortgage rate in May was 6.57, up from 6.43 in April for a 30-year conventional mortgage. A year ago, the rate was 5.1.
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. If you want to know the market value of your property, please contact your local REALTOR®.
