Even before the Federal Reserve made its interest rates cut this week, the latest area housing report shows a strong residential real estate market in Berrien, Cass, Van Buren, and Allegan counties.
“In August, the housing market broke the 300 bar in sales for the first time in 2024. House sales surpassed sales at the same time in the previous year for the fourth time in 2024. Selling prices continued to rise and set records in the year-over-year comparison that reaches back to 2006,” said Alan Jeffries, Association Executive of the Southwestern Michigan Association of REALTORS.
Jeffries continued, “The number of houses sold in August increased 5 percent from August 2023 (330 vs. 315). In July 2024 sales reached 299 houses. Year-to-date, 1853 houses were sold in August 2024, a sliver down from the 1860 houses sold in August 2023.”
Southwest Michigan sees inventory increase and selling price increases
According to the Southwestern Michigan Association of REALTORS, the inventory of houses for sale increased 15 percent in August 2024 (973 vs. 848). This growth raised the supply level to 6.0-months which was up from 4.9-months in August 2023. For comparison, in August 2010, there were 3757 houses for sale for a 17.8-months supply of houses for homebuyers.
The average selling price in August 2024 dipped 2 percent to $387,235 compared to $396,933 in August 2023. The August selling price rose slightly higher than in July 2024, when the average selling price was $387,290. Year-to-date, in 2024, the average selling price grew 3 percent to $368,335 from $356,101.
The median selling price in August 2024, $300,000, increased 7 percent from $281,000 in August 2023. Year-to-date, the median selling price increased by 8 percent ($275,000 vs. $255,000).
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 August 2024 increased 2 percent compared to August 2023. ($127,787,719 vs. $124,889,612). The year-to-date total dollar volume increased 3 percent ($682,526,064 vs. $662,266,254).
The number of bank-owned or foreclosed homes as a percentage of all transactions rose to 2 percent after holding at 1 percent since May. There were eight houses included. The previous lowest percentage was 0 percent in August 2022, and the highest percentage in August was 36 percent in 2009.
The Freddie Mac mortgage rate in August was 6.35, down from 6.73 in July for a 30-year conventional mortgage. A year ago, the rate was 7.18.
National View: Sales slip in all but the Northeast
Nationally, existing-home sales fell in August, according to the National Association of REALTORS. Three out of four major U.S. regions posted sales declines, while the Midwest registered no change. Year-over-year, sales slipped in three regions but remained stable in the Northeast.
Total existing-home sales, which were completed transactions that include single-family homes, townhomes, condominiums, and co-ops – descended 2.5% from July to a seasonally adjusted annual rate of 3.86 million in August. Year-over-year, sales retracted 4.2% (down from 4.03 million in August 2023).
“Home sales were disappointing again in August, but the recent development of lower mortgage rates coupled with increasing inventory is a powerful combination that will provide the environment for sales to move higher in future months,” said NAR Chief Economist Lawrence Yun. “The home-buying process, from the initial search to getting the house keys, typically takes several months.”
The median existing-home price for all housing types in August was $416,700, up 3.1% from one year ago ($404,200). All four U.S. regions posted price increases.
In the Midwest, existing-home sales were unchanged in August at an annual rate of 920,000, down 5.2% from the previous year. The median price in the Midwest was $315,400, up 3.8% from August 2023.
First-time buyers were responsible for 26% of sales in August – matching the all-time low last seen in November 2021 – and down from 29% in both July 2024 and August 2023. NAR’s 2023 Profile of Home Buyers and Sellers – released in November 2023 – found that the annual share of first-time buyers was 32%.
Individual investors or second-home buyers, who make up many cash sales, purchased 19% of homes in August, down from 13% in July 2024 and 16% in August 2023.
All-cash sales accounted for 26% of transactions in August, down from 27% in both July and one year ago.
Total housing inventory at the end of August was 1.35 million units, up 0.7% from July and 22.7% from one year ago (1.1 million). Unsold inventory sits at a 4.2-month supply at the current sales pace, up from 4.1 months in July and 3.3 months in August 2023.
“The rise in inventory – and, more technically, the accompanying months’ supply – implies home buyers are in a much-improved position to find the right home and at more favorable prices,” Yun added. “However, in areas where supply remains limited, like many markets in the Northeast, sellers still appear to hold the upper hand.”
The numbers reported for local sales include residential property in Allegan, Berrien, Cass, and the westerly 2/3 of Van Buren Counties. They 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.
The Southwestern Michigan Association of REALTORS, Inc. is a professional trade association for real estate licensees 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.
