As the peak summer selling season arrives on the doorstep in Michigan’s Great Southwest, there’s good news on several fronts for those looking to buy. The latest report from the Southwestern Michigan Association of Realtors shows an increase in available housing inventory hitting the market with a corresponding decrease in what had become record-setting prices in the local market.
Association Executive, Alan Jeffries, who provides us monthly with a sneak preview of the local housing market ahead of the release of national housing figures, notes, “While halfway through 2024, sales-to-date were down 4-percent from June 2023, June’s housing sales increased by 7-percent above those in the previous month of May 2024, with 241 home sales as compared to 226, helping to build the peak selling season.” Jeffries adds, “The good news for buyers is that inventory grew 17-percent from June of 2023, and average selling prices dropped from the prices set in May of 2024.” In fact, in the year-over-year comparison, the average and median selling prices last month (June of 2024) dropped below the record-setting prices for the month of June in the year-over-year comparisons dating back to 2006.
Despite those good news parameters, Jeffries reports, “The number of houses sold in June plunged 15-percent from June of 2023 with 241 homes sold as compared to last year’s 283,” and adds, “The market hasn’t experienced this level of sales in June since 2010.” Looking at year-to-date numbers, 1,224 houses have been sold through June of 2024, compared to 1,278 houses sold through the same six month period a year ago in June of 2023, for a 4-percent decline in sales.
On that brighter front, the inventory of houses for sale grew 17-percent above the level available a year ago, with 889 homes on the market as compared to just 760 a year ago. Due to the lower sales volume, the months’ supply level increased slightly for homebuyers to 5.7 from what had been a 4.3-months’ supply level a year ago. For comparison purposes, and to illustrate the condition of the market, in June of 2010, there were 3,679 houses for sale for a 16.9-months’ supply available to homebuyers.
The average selling price in June of 2024 fell by 15-percent to $349,616, as compared to a level of $411,289 in June a year ago. Year-to-date in 2024, the average selling price through June has risen by 3-percent to $358,462 from last year’s average of $348,227 midway through the year.
The median selling price in June of 2024, at $275,000 fell by 3-percent from the $284,500 mark seen in June of 2023. Year-to-date, however, the median selling price has increased by $15,000 to $265,000 as compared to $250,000 midway through 2023. 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 June of 2024 tumbled by 18-percent compared to June of 2023 for a total of $84,257,669 as compared to $102,660,128 a year ago, and the year-to-date total dollar volume slipped by 1-percent to $438,758,422 against the mark of $444,977,444 midway through 2023.
The number of bank-owned or foreclosed homes as a percentage of all transactions stayed at 1-percent as it was in May. The previous lowest percentage was 1-percent in June 0f 2022 and 2021, and the highest percentage on record locally in a month of June was 36-percent, set in 2009.
The Freddie Mac mortgage rate in June was 6.86 — down from 7.03 in May — for a 30-year conventional mortgage. A year ago, that rate was 6.71.
The data shared by Jeffries and his association, reflect 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. Jeffries cautions, “If you want to know the market value of your property, please contact your local Realtor.”
Jeffries also routinely share advice for real estate buyers and sellers in this report. Here’s what he suggests this month:
When Selling a Home…
So, you are not getting any offers at your asking price. Lowering your price is an option to consider. Another suggestion is to talk to your Realtor about other reasons your house is turning buyers away. There could be things about your home that you overlook day in and day out.
For example, have you neglected exterior maintenance? Buyers may not even get out of the car if they see chipped paint, clogged gutters, etc., because they assume the rest of the house has not been maintained. Dingy lighting or unclean light fixtures will keep buyers from seeing details like crown molding and make rooms look smaller. Old carpet isn’t necessarily a deal-breaker, especially in bedrooms, but stained or worn-out carpet? Buyers will likely submit low offers so they can replace them.
Buyers want to see the kitchen — not all the small appliances you own, or your pile of mail. So clear the countertops of everything. Bad smells are a big turn off as well. You might not be able to smell pet odor, so this might be a good question for an honest answer from your Realtor.
Just a small amount of time and attention to details will increase your home’s value and selling price and make the investment so worthwhile.
When Buying a Home…
The journey to finding your dream house should start by finding a Realtor who knows your community well, and you can trust the advice he or she will give. One of the first suggestions given should be for you to get pre-approved for a mortgage. Your Realtor will have experience with local lenders and can explain the differences between the types of lenders.
Why is this step so important? There’s a world of difference between being pre-qualified for a loan and being pre-approved. Pre-qualified is an approximation of your ability to buy.
With a pre-approval, a lender typically goes deeper and tells you more specifically how big a loan you can get. Pre-approval is proof that you can buy. Pre-approval puts you in a better position when you make an offer. Everyone takes you more seriously. Pre-approval provides evidence to your real estate agent and the seller (or seller’s agent) that a trusted financial institution is willing to finance the purchase.
Keep in mind that just because the lender says you can take out a loan for an amount doesn’t mean you should. Consider your lifestyle and monthly budget to decide on a responsible loan amount for you.
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.
