An analysis of October home sales in Southwest Michigan shows that the volume of sales, as well as the prices have peaked, settled and began to back off. However, it’s still a strong market for sellers, while buyers may not be feeling quite as frantic as a few months ago. Here’s the analysis from the Southwestern Michigan Association of Realtors, which is provided on an advance basis exclusively to MoodyOnTheMarket.com:
The SWMI housing market sales dropped 23 percent in October. This makes four consecutive months that sales have fallen more than 19 percent below sales from last year. Selling prices in October were down from October 2020 record selling prices. However, the year-to-date selling prices did still set records.
In October, 367 houses were sold, down from the 398 sold in September and down 23 percent compared to 477 houses sold in October 2020.
Year-to-date, the number of houses sold at the end of October was 3259, up 2 percent over October 2020 (3259 vs. 3198). At 3259 houses, October set a new sales record in the year-over-year sales records since 2006. For the last ten months, the year-to-date sales have set records over previous years.
The average selling price in October dropped 6 percent from the record-setting average selling price in October 2020 ($337,096 vs. $358,144). The year-to-date average selling price in October 2021 set a new record rising 8 percent over October 2020 ($321,711, vs. $297,786).
The median selling price in October 2021 slipped 4 percent to $235,000 from $245,660 in October 2020. Year-to-date, the median selling price increased 5 percent ($225,000 vs. $215,000). The year-to-date median selling price set a new record price in the month of October 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.
The inventory of houses for sale fell 21 percent from a year ago (818 vs. 1034), bringing the inventory of houses for sale to a 3.2-months supply of inventory available for buyers. For comparison, in October 2010, there were 3385 houses for sale and a 16.6-months supply of inventory. Throughout 2021, the inventory level at the end of each month has fallen 20 percent to 48 percent.
The total dollar volume plummeted 28 percent in October 2021 ($123,714,421 vs. $170,834,881). With the number of sales at higher prices, the year-to-date total dollar volume set a new record for the dollar volume at the end of October ($1,048,456,410 vs. $952,320,913). The year-to-date total dollar volume rose 10 percent.
There were four bank-owned or foreclosed homes as part of all transactions in October, which was just 1 percent. In January, the rate was 4 percent, the highest rate for the year. The previous lowest percentage in October was 2 percent in 2020 and 2019. The highest percentage in October was 34 percent in 2009.
Nationally, the Freddie Mac mortgage rate in October was 3.14, up slightly from 3.01 in September for a 30-year conventional mortgage.
This data reflects home sales across Allegan, Berrien, Cass, and the westerly 2/3 of Van Buren Counties and 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®.
