Like the mercury in your backyard thermometer, summer sales surged for the housing market in Michigan’s Great Southwest, even as selling prices continued to set new year-over-year records in the region.
Association Executive Alan Jeffries at the Southwestern Michigan Association of Realtors says, “In July, the housing market turned hot just like the weather.” In fact, he tells us that home sales surpassed those from the same time a year ago for only the third time in all of 2024. Additionally, Jeffries reports, “Selling prices continued to grow and set records in the year-over-year comparison that reaches back to 2006,” adding, ” July sales and prices also outshined those in June of 2024, to bring year-to-date numbers up above those set in 2023, with just one exception.”
The number of houses sold in July increased 12-percent from July of 2023 for a total of 299 homes sold as compared to 268 last year. Jeffries reports that the market hasn’t experienced this level of sales in July since 2021. He notes, “Year-to-date, 1,523 houses have been sold through July of 2024, as compared to 1,546 houses through the same time last year, resulting in a 1-percent decline in YTD sales.”
Following a 17-percent growth in the inventory of houses available for sale in June, the market’s activity in July dropped the inventory at the end of July by 8-percent from the level seen in July of 2023 , essentially 800 homes in inventory versus the 873 of last year. The months supply level increased to 5.9 for homebuyers from a 3.9-months supply a year ago. By way of comparison, in July of 2010, there were 3,821 houses for sale for an 18.1-months supply of houses for potential homebuyers.
The average selling price in July of 2024 rose by 12-percent to $387,290 compared to $345,364 in July of 2023. Year-to-date, in 2024, the average selling price has grown by 5-percent to $364,240 from $347,724. The median selling price in July of 2024, $295,000, jumped by 13-percent from $260,250 in June a year ago. Year-to-date, the median selling price increased by 8-percent to $270,000 as compared to $250,000 at the same time last year. 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 July 2024 soared by 25-percent when compared to July of 2023 for a total of $115,799,923 in sales versus $92,649,098 a year ago. As a result, the year-to-date total dollar volume increased by 3-percent to a total of $554,738,545 as compared to last year’s total of $437,626,542.
The number of bank-owned or foreclosed homes as a percentage of all transactions stayed at 1-percent as it has since May. The previous lowest percentage in a month of July was 0-percent in July of 2021, and the highest percentage in July was 35-percent experienced in 2009.
The Freddie Mac mortgage rate in July was 6.73, down from 6.86 in June for a 30-year conventional mortgage. A year ago, that rate was 6.81.
Jeffries tells us that his data reflects home sales across Allegan, Berrien, Cass, and the westerly 2/3rds of Van Buren Counties and cautions, the numbers should not be used to determine the market value of any individual property. He suggests, “If you want to know the market value of your property, please contact your local Realtor.
As is Jeffries custom, each month in this report, he shares advice for both buyers and sellers:
When Selling a Home…
Home pricing is more of a science than an art, but many homeowners price with their heartstrings instead of cold, hard data. Smart sellers know that crunching the numbers is always the better route to an accurate home price. Here’s how they do it.
The number one rule is to avoid overpricing. If you start high, yes, you can always lower your price, but you take a chance at losing potential buyers because it was out of their budget, and your house may remain on the market for months, keeping you from moving to a new home or facing the risk of having two mortgages.
The second rule is to work with a Realtor who has access to current market data to price your home for sale. Do not rely on online tools to determine your home’s market value. Once on the market, you will know that your house price is right or needs to be adjusted based on the number of showings and offers. Your Realtor is your best advisor and a good resource for feedback from potential buyers.
When Buying a Home…
Most people have deeply personal reasons for wanting to buy a home. Maybe it’s the bathroom that feels like a dreamy, modern spa. Your lender doesn’t care about what you like in a house. Their only concern is that the house you buy is worth as much as the value of your mortgage.
For that reason, a home must be valued at, or above, the agreed-upon purchase price, and this must happen before you can close on a house. After you sign a home purchase agreement, the home you’re buying must pass an appraisal — an assessment of the property’s value by an unbiased third party: the appraiser.
They don’t represent you or the seller; instead, this person is a contractor chosen by your lender through an appraisal management company. The home buyer is responsible for paying for the appraisal, and the fee is typically wrapped into your closing costs.
When the appraisal is finished, the appraiser issues a written report with his or her opinion of the value of the home. Whatever the outcome of the appraisal, your Realtor will be there to offer recommendations about how to proceed.
Jeffries invites prospective buyers to view properties that are for sale in the local area, by going to www.swmar.com, and clicking on the word “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.
