The Southwestern Michigan Association of Realtors reports the local housing market sales slipped in February from a robust start in January.
The group also reports the average selling price for houses in February dropped 1.5 percent from January ($410,203 vs. $416,393). They say the year started with an elevated inventory and in February the inventory increased 18 percent from February 2024.
Luke Jeffries, Association Executive for Southwestern Michigan Association of Realtors said, “In February 2025, the market ended with an inventory of 699 houses for sale, up from 590 in February 2024. Homebuyers in Allegan, Berrien, Cass, and the westerly 2/3 of Van Buren counties are facing a 4.2-months supply of homes, up slightly from the 3.7 supply level in February 2024.”
Further month-over-month information reported by the Southwestern Michigan Association of Realtors follows:
The Freddie Mac mortgage rate in January was 6.76, down from the January rate of 6.95, and down from the 6.94 rate in February 2024 for a 30-year conventional mortgage.
The number of houses sold in February 2025 increased 3 percent above that sold in February 2024 (152 vs. 147). Year-to-date, the number of houses sold was up 6 percent (325 vs. 306). The number of houses sold peaked in February 2019 at 235.
The average selling price in February 2025 soared 20 percent to $410,203 from $340,557 in February 2024. Year-to-date, the average selling price jumped 27 percent from February 2024 (416,724 vs. 327,284).
The February 2025 median selling price increased 7 percent ($285,000 vs. $266,500). Year-to-date, the median selling price increased 12 percent from February 2024 (275,000 vs. 245,000).
The total dollar volume with the additional sales grew 25 percent to $62,350,909 from the 50,061,911 collected in February 2024.
There were six bank-owned or foreclosed homes as a percentage of all transactions in February, or 4 percent of the closed transactions. The highest percentage in February was 75 percent in 2009.
Nationally:
Existing-home sales ascended in February, according to the National Association of Realtors. For both monthly and year-over-year sales, two major U.S. regions experienced growth; one region remained stable, and the other registered a decline.
Total existing-home sales, which were completed transactions that include single-family homes, townhomes, condominiums, and co-ops – progressed 4.2% from January to a seasonally adjusted annual rate of 4.26 million in February. Year-over-year, sales slid 1.2% (down from 4.31 million in February 2024).
“Home buyers are slowly entering the market,” said NAR Chief Economist Lawrence Yun. “Mortgage rates have not changed much, but more inventory and choices are releasing pent-up housing demand.”
The median existing-home price for all housing types in February was $398,400, up 3.8% from one year ago ($383,800). All four U.S. regions registered price increases.
“Each one percentage point gain in home price translates into an approximately $350 billion increase in housing equity for American property owners,” Yun said. “That means a gain of nearly $1.3 trillion in home value appreciation at a time when the current stock market is undergoing a correction. Moreover, the ongoing housing shortage, coupled with historically low mortgage default rates, implies a solid foundation for home values.”
In the Midwest, existing-home sales were unchanged in February at an annual rate of 1 million, up 1.0% from the prior year. The median price in the Midwest was $295,500, up 5.8% from February 2024.
First-time buyers were responsible for 31% of sales in February, up from 28% in January 2025 and 26% in February 2024. NAR’s 2024 Profile of Home Buyers and Sellers – released November 20244 – found that the annual share of first-time buyers was 24%, the lowest ever recorded.
Individual investors or second-home buyers, who make up many cash sales, purchased 16% of homes in February, down from 17% in January and 21% from February 2024.
Cash sales accounted for 32% of transactions in February, up from 29% in January but down from 33% in February 2024.
Total housing inventory registered at the end of February was 1.24 million units, up 5.1% from January and 17% from one year ago (1.06 million). Unsold inventory sits at a 3.5-month supply at the current sales pace, identical to January and up from 3.0 months in February 2024.
“On a technical note, raw sales in February were down 5.2% from last year, which was a leap year with one extra day of business,” Yun added. “However, after adjusting for this effect, combined with the winter seasonal factors, the momentum for home sales is flashing encouraging signs.”
About
The Southwestern Michigan Association of Realtors is a professional trade association for real estate licensees 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.
