The arrival of wintry weather has done more than chill the neighborhood substantially, the onset of falling temperatures has also seen the housing market in Southwestern Michigan cool rather markedly. That’s the assessment of Alan Jeffries, Association Executive for the Southwestern Michigan Association of Realtors.
Jeffries says, “As the temperatures cooled off, the Southwest Michigan local housing market continued to cool also,” adding, “We have now experienced eleven consecutive months in 2022, where home sales have declined when compared to the same month in 2021.” Local home sales in November dropped 19-percent from sales a month earlier in October of 2022 (277 vs. 340). Despite the fall-off, selling prices increased modestly. Jeffries notes, “The bright spot in November was that the Freddie Mac mortgage rate decreased to 6.49 from 7.08 in October.”
Jeffries report from the SWMAR shows that in November the number of houses sold fell to 277 from 334 in November of 2021, for a 17-percent drop in sales. Year-to-date sales were down 14-percent from 2021, with 3,095 total home sales as compared to 3,593 by the same time a year ago.
The median selling price in November and the year-to-date average and median selling prices set records in the year-over-year comparison, which dates back to 2006. The average selling price rose 3-percent from that in November of 2021, to an average of $331,848 as compared to $322,192 last year. The year-to-date average selling price of $340,595 was 6-percent higher than the $321,755 price measured in November of 2021.
The median selling price increased 2-percent to $224,900 from $220,000 in November of 2021, while year-to-date, the median selling price grew 9-percent to $245,001, as compared to last year’s $225,000.
The median price is the price at which 50% of the homes sold were above that price and 50% were below.
The housing inventory available for sale across Allegan, Berrien, Cass, and the westerly 2/3rds of Van Buren Counties also declined, standing at 769 at the end of November, down from 873 in October. However, that is up from the 702 homes on the market a year ago in November of 2021. The inventory showed two months of growth. However, the availability level dropped from a 4.1-months supply of homes for sale at the end of October 2022 to a 3.7-months supply at the end of November 2022. By way of comparison, in November of 2010, there were 3,160 houses for sale and a 15.8-months supply of inventory.
The lower sales and lower selling prices resulted in the total dollar volume falling 15-percent in November of 2022 from November of 2021 ($91,922,130 vs. $107,612,417). Year-to-date total dollar volume at the end of November 2022 dropped 9-percent ($1,054,144,196 vs. $1,156,068,827).
The Freddie Mac mortgage rate slid to 6.49 from 7.08 in October for a 30-year conventional mortgage. A year ago, the rate was 3.10.
Only one bank-owned or foreclosed house was included as a percentage of all transactions. That resulted in the percentage of all transactions falling to 0-percent again after the jump to 3-percent in October. The previous lowest percentage in a month of November was 1-percent marked a year ago in November of 2021. The highest percentage in a month of November was 36-percent set back in 2010.
The data reported by Jeffries reflects home sales across Allegan, Berrien, Cass, and the westerly 2/3rds of Van Buren Counties and should not be used to determine the market value of any individual property. He cautions that if you want to know the market value of your property, you should contact your local Realtor.
Jeffries also offers his monthly advice to both home sellers and home buyers in the region:
When Selling a Home…
Yes, your home is beautiful and represents many good memories from living in it, but think of your home as potential buyers would see it. Does it look cluttered, and are all your good memories displayed on the wall in pictures? You want your buyers to see your home as a place to make their good memories.
The home selling and purchasing process are fraught with potholes, and in this weakened housing market, the selling process must be better prepared. In order to sell homes at top dollar, houses must be “prepared for sales” – that’s where Staging comes in.
A recent study by the National Association of Realtors found that 83-percent of Realtors said staging a home made it easier for a buyer to visualize the property as a future home. Barb Schwarz, The Creator of Home Staging, shows that even in today’s slower housing market, 95-percent of staged homes sell (on average) in 35 days or less. On the other hand, homes that are not staged take 172 days or more to sell.
That widely quoted real estate mantra is no longer: “Location, location, location.” In these times, it’s now: “Staging, staging, staging!”
When you are selling the home you have lived in for an extended period, it can be difficult to see it the way buyers will as their first impression. Ask your Realtor about the advantages of staging.
When Buying a Home…
You want to get your new home at the best price and close the deal quickly.
The best way to do this is to work with a Realtor. And by making sure that you are financially ready. This is true for first-time buyers and current homeowners.
You need to look at all your credit bills and get a copy of your credit report. The mortgage rate you will be offered is based on the credit debt that you have and whether you have a clean credit history.
Ask your Realtor to recommend lenders to help you get prequalified for a loan amount. When you find your dream house, determine your bidding strategy with your Realtor to help you get through the bidding process smoothly while watching out for your best interest. With a signed contract, your Realtor will guide you through the closing steps as swiftly as possible.
Being financially ready and teaming with a Realtor will greatly impact your home-buying experience.
To view properties for sale in the region, 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 this link:
