Realtors across the region are reporting essentially flat sales numbers for year-over-year comparisons in October, even as the pace of increasing prices continued to advance at a record rate. That’s the nutshell version of the monthly data report from Southwestern Michigan Association of Realtors Executive Alan Jeffries.
Jeffries tells us, “In October, the local Southwest Michigan housing market nearly mirrored the market results in October of 2023,” noting, “While sales were higher in October than in September (269 homes sold as compared to 255 a month earlier), and selling prices increased by 2-percent in October of 2024 as compared to October of 2023, the selling prices in each October over the last four years have continued to rise and set records in the year-over-year comparison dating back to 2006.”
Jeffries reports that the number of houses sold in October decreased by 1-percent (four houses) from October of 2023 (269 vs. 273). Year-to-date, he reports that 2,376 houses have been sold through October of 2024, which is less than 1-percent (seventeen houses) below the 2,393 houses sold through the calendar year as of October of 2023.
On a brighter note for the marketplace, the inventory of houses for sale continued to grow in October, rising 19-percent above the level in October of 2023. That leaves Realtors with 953 options on the market versus the 802 available a year ago. For a historical perspective comparison, in October of 2010, there were 3,385 homes for sale for a 16.6-months supply of houses for potential homebuyers.
The average selling price last month, October of 2024, increased 2-percent to $400,250 as compared to $392,273 in the same month a year ago. The October average selling price marked the third time this calendar year that the average selling price rose above the $400,000 mark, with May previously reaching $416,819 and September setting a $400,339 average selling price. Year-to-date, in 2024, the average selling price has now grown by 4-percent to $375,419 from the $361,102 mark of a year ago.
The median selling price in October of 2024 –$279,500 — increased less than 2-percent from the $274,500 median seen in October of 2023. Year-to-date, the median selling price has increased by 7-percent to $277,000 as compared to last year’s rate of $260,000. The median price is the price at which 50-percent of the homes sold were above that price and 50-percent were below.
The total dollar volume in October of 2024 increased 1-percent when compared to October of 2023 to $108,512,158 as compared to $106,950,822. The year-to-date total dollar volume grew by 3 percent ($892,492,886 vs. $864,405,599).
The number of bank-owned or foreclosed homes as a percentage of all transactions jumped to 3-percent from 1-percent in September. There were eight houses included. The previous lowest percentage was 1-percent in October of 2021, whereas the highest percentage in a month of October was the 34-percent share set in 2009.
The Freddie Mac mortgage rate in October climbed to 6.72 from 6.08 in September for a 30-year conventional mortgage. A year ago, that rate was 7.79.
Jeffries says his data 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 suggests that if you want to know the market value of your property, you should contact your local Realtor.
As is his tradition, Jeffries also offers advice to those who are both side of a transaction each month, those who are either selling a home or buying one. He says:
When Selling Your House…
Selling a home during the winter months can be an overwhelming undertaking. For most families, the holidays are already stressful, so adding the task of selling your house to the mix could seem overwhelming. However, there are many advantages to selling a home in the colder months.
The housing inventory is always lower in the winter as many potential sellers take their homes off the market to wait until spring. This means that there are fewer listings and much less competition. Decorating a house for the holidays also takes care of the need to improve curb appeal and any home staging.
Additionally, winter buyers are also usually incredibly motivated. If someone is visiting open houses instead of spending the holiday season with friends and family, they most likely need to buy a home quickly.
Your local Realtor can give you advice based on current activity near you.
When Buying a Home…
Buying a home is a life changing process involving financial and emotional decisions. This is true for first-time and repeat homebuyers. It may be the largest financial transaction you will make.
Start by looking at three things – how much cash do you have, what is your credit score and what is your debt ratio. Lenders like to see a 20-percent down payment, but many low payments loan programs, such as FHA loans, may only require as little as 3.5-percent as a down payment.
The higher your credit score, the better your chances of getting a loan at a lower interest rate. If your credit score is low, request a full report and look for errors that affect your score. Lenders will also want to compare your debt-to-income ratio. So, when you add up all your bills and divide by your monthly income what percentage number do you get? Lenders typically want this number to be less than 43-percent, according to the Consumer Financial Protection Bureau.
Contacting a Realtor who knows the local lending market, in addition to the housing market, will help you to easily navigate all the steps to buying a home.
To view properties that are for sale in the 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.
