Every month the Southwest Michigan Association of Realtors analyzes residential real estate sales and provides an exclusive ‘weeks early’ preview to MoodyOnTheMarket.com readers. Trends have been mostly negative over recent months and that largely continued in September, as detailed below:
This September, the SWMI housing sales level continued to stay below the sales level in September for the last ten years. September was the ninth consecutive month for sales to fall behind in the same month of 2022. Selling prices set records for reaching the highest price in September, comparing back to beyond the peak years to 2006.
The extremely low inventory of houses for sale fell 7 percent below the level available a year ago (830 vs. 895). With the lower sales volume, the months-supply level increased slightly to 5.0 from 4.1-months supply from a year ago for homebuyers. For comparison, during the recession in September 2010, there were 3574 houses for sale for a 17.3-months supply of houses.
The increasing interest rate continued to restrain sales. The Freddie Mac mortgage rate in September was 7.30 percent, up from 7.18 in August for a 30-year conventional mortgage. In September 2022, the rate was 6.7; in September 2021, the rate was drastically lower at 3.01.
September house sales dropped 18 percent from a month ago, August 2023 (259 vs. 315) and September sales crashed 24 percent from a year ago, September 2022 (259 vs. 339).
Year-to-date, 2119 houses sold thru September, compared to 2524 houses in September 2022, for a 16 percent decline in YTD sales.
The average selling price in September 2023 increased 7 percent to $365,279 compared to $340,600 in September 2022. Year-to-date, in September 2023, the average selling price rose 6 percent to $357,233 from $336,150 in September 2022.
The median selling price in September 2023 at $282,950 rose 12 percent from $252,000 in September 2022. The median selling price, year-to-date, increased by nearly $15,000 ($259,450 vs. $245,000).
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 September 2023 dropped 18 percent compared to September 2022 ($94,454,730 vs. $115,463,412). The year-to-date total dollar volume fell 11 percent ($756,720,984 vs. $848,468,979).
The number of bank-owned or foreclosed homes as a percentage of all transactions stayed at 3 percent, the same as in August. It was at 0 percent in September 2022. The highest percentage in September previously was 37 percent in 2009 during the Great Recession.
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®.
Here are some tips from the Southwestern Michigan Association of Realtors:
When Selling a Home…
Heading into the fall season is the time to reset the curb appeal. You should remove the remnants of summer plants and stow away the summer toys. Add the warm fall colors to the décor at your front door with hearty mums and wreaths. Take new pictures to “freshen up” your listing for those searching online.
Make the inside of your home feel cozy for buyers coming in out of the fall chilly air by keeping the temperature warm throughout the day. Consider changing the furnace filter to freshen the air after a long season of air conditioning. With shorter days, add as much light as possible by opening blinds for natural light and placing lamps to make rooms well lit. Ask your REALTOR® for more suggestions to make your home appealing to buyers.
When buying a home…
In the fall, you may find less competition and more motivated sellers while there is still a good inventory of homes from which to choose. You also will get the advantage of seeing how well the seller has maintained the home. On chilling, rainy days, it is much easier to check for drafts, leakage, and other structure issues.
Fall is also a good time to assess how much work is required to keep a house in top condition and determine if you are up to the challenge. Working with your REALTOR® will keep you focused on what is important to you and help you buy the right home for you and your family.
The Association can be contacted at 269-983-6375 or through their website at www.swmar.com.
