The heady days of exponential growth in the local housing market in Michigan’s Great Southwest were celebrated during the peak span from 2016 through 2020. Following a dramatically slower pace influenced largely by the impact of the Covid pandemic, 2024 finally continued a rebound that got legs throughout 2023, leaving the market with a growing inventory at the end of the calendar year, and record pricing. That’s the snapshot assessment dispatched this week by the newly appointed Chief Executive Officer of the Southwestern Michigan Association of Realtors, Luke Jeffries.
Jeffries inaugural report on the state of the market says the toll taken on the local housing market in 2021 and 2022 by the pandemic continues to fade, noting, “In 2023, sales began to increase with selling prices reaching the highest level since 2006.” Jeffries adds, “At the end of 2024 housing sales continued to rebound due to the growing inventory of houses for sale, while selling prices in December of 2024 surpassed the record prices set in December 2023.”
According to the new association exec who had served as the Chief Financial Officer since 2019, the inventory of houses for sale across Allegan, Berrien, Cass, and the westerly 2/3rds of Van Buren Counties at the end of 2024 increased by 15-percent from 2023 (732 vs. 637). At the beginning of 2024, the inventory was at 3.6-months supply, and it grew to a 6.2-months supply in September, while the year ended with 4.4-months supply. By way of comparison, back in 2014, the year started at an 8.3-months supply, maxed at 12.0-months supply in July and August, then fell to 8.0-months supply at the end of the year.
Mortgage rates rose from 6.13 in January and, at the end of the year, were 6.85. The rate peaked in April at 7.13 for a 30-year conventional mortgage.
For eight months in 2024, the number of houses sold in a month was higher than the same month in 2023. The average and median selling prices peaked in May at $416,819 and $290,000, respectively.
In December of 2024, the number of houses sold increased 15-percent when compared to a year earlier in December of 2023 (217 vs. 188). Year-to-date, sales in 2024 rose 1-percent to 2,823 from 2,786 in 2023.
The average selling price in December of 2024 at $369,739 was 21-percent higher than the average selling price of $305,580 in December of 2023. The highest selling price in the year-over-year comparison reached $377,156 in 2021.
The year-to-date average selling price of $377,668 climbed 6-percent over 2023 ($355,918), setting a new record in the year-over-year comparison.
The median selling price for December of 2024 came in at $259,990, a rise of 11-percent above the $233,501 median selling price established in December of 2023.
The year-to-date median selling price of $275,000 jumped 6-percent higher than the $260,000 seen in 2023 and set a new record in the year-over-year comparison. The median price is the price at which 50% of the homes sold were above that price and 50% were below.
Additional market notes include the number of houses sold each year stayed above 3,000 from 2013 through 2022. Then, in 2023, the number of houses sold in the year dropped to 2,786, followed by 2,823 in 2024. Since 2013, the average selling price in SWMI has increased 110-percent to $377,668 as compared to 2013’s average selling price of $179,636.
The yearly total dollar volume in 2024 increased by 7-percent from December of 2023 for a total of $1,066,156,943 as compared to the previous year’s total dollar volume of $992,811,657.
There were four bank-owned or foreclosed homes as part of all transactions in December of 2024, which was 2-percent of the total market. Overall, there were 47 bank-owned or foreclosed houses sold in 2024. For most of the past year, the monthly percentage was 2-percent or less.
The numbers reported for local sales include residential property in Allegan, Berrien, Cass, and the westerly 2/3rds 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, Jeffries encourages you to contact your local Realtor.
Luke Jeffries continues to offer monthly advice to those who are either selling a home of buying one, just as his predecessor did. Here is that advice for January of 2025.
When Selling a Home…
When putting your home on the market, there are critical things you should do to increase your home’s value before the for-sale sign is put in your front yard. The key is to focus on the most important repairs to make before selling a house to ensure every dollar you spend supports a higher asking price.
This is where your Realtor can give good advice. He or she knows what buyers are expecting and what repairs recoup the most dollars you will spend.
The number one must-make repair is to fix damaged flooring. Scratched-up wood flooring, ratty, outdated carpeting, and tired linoleum can overwhelm buyers. You really should fix water stains. For buyers, a water stain suggests more problems could be hidden beneath the surface.
Next, repair torn window screens. This is an easy DIY for around $15. Another minor fix with a big impact is yellowing or cracked grout. Buyers will notice. Simple bathroom re-grouting may cost just $1 to $2 per square foot.
While you undoubtedly love your pets, potential buyers may not. Repair or replace all pet damage. Just one sign of pet damage will have buyers suspecting there are other damaged areas.
A complete kitchen renovation is rarely worth it when it comes time to sell. If you’re updating the space for your sale, focus on low-cost, high-impact projects instead. Painting wood cabinets, updating hardware, or installing new countertops or appliances could be enough.
Setting up your home for selling success doesn’t have to be expensive. Ask your Realtor to help prioritize updates that get your home in selling shape and justify a higher asking price.
When Buying a Home…
A low credit score doesn’t have to lock you out of homeownership. A mortgage will cost you more (both in dollars and angst) than someone with stellar credit, but many lenders are willing to work with you.
Lenders review your whole financial picture. If you have a steady income, a regular payment history, and some cash in hand, that will help balance your less-than-perfect credit.
Here’s how FICO categorizes credit scores:
- 800+ = Excellent credit score
- 740-799 = Very good credit score
- 670-739 = Good credit score
- 580-669 = Fair credit score
- Below 580 = Poor credit score
A credit score of 669 or below typically makes you a “subprime” borrower, according to FICO. That means you’re at a more significant risk, loans will cost more, and your options will be limited.
Your primary low-credit-score mortgage option will be FHA, which sometimes gives loans with credit scores as low as 580. But the lower your score, the more it will cost you. You may pay more through a larger down payment, a higher interest rate, private mortgage insurance, or points, which are fees attached to the loan.
Let your Realtor know your credit score at your first meeting, and their knowledge of local lenders will help you find the best financial options in your market.
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 by phone at 269-983-6375 or online through their website at www.swmar.com.
