The Southwestern Michigan Association of Realtors reports area housing market sales in March 2025 picked up from a sluggish February performance and ended with “an explosive finish.”
According to Luke Jeffries, Association Executive, all figures increased by double digits, except for sales year-to-date. Sales increased 49 percent over that in February with selling prices increasing 1-3 percent higher in March.
In a summary from the Association, Jeffries said, “The number of houses sold in March jumped 12 percent to 226 from 202 in March 2024. The level of sales in March reflects the influence of many economic factors since the peak sales of 286 achieved in March 2020.”
At the end of the first quarter of 2025, house sales were up 8 percent compared to 2024 (550 vs. 508).
The inventory of houses for sale increased 16 percent, providing a 4.4-months supply at the end of March (746 vs. 641). This level still needs to be higher for buyers searching for listings for sale across Allegan, Berrien, Cass, and the westerly two-thirds of Van Buren counties. For comparison, in March 2010, there were 3218 houses for sale.
In March 2025, the average selling price increased 31 percent to $420,528, compared to $321,752 in March 2024. Year-to-date, the average selling price increased 26 percent ($411,039 vs. $325,471).
The median selling price in March 2025 grew 16 percent to $289,950 from $250,000 in March 2024. Year-to-date, the median selling price rose 13 percent to $277,495 from $245,000 in March 2024.
The median price is the price at which 50% of the homes sold were above that price and 50% were below.
The Freddie Mac mortgage rate in March was 6.65, down from 6.76 in February for a 30-year conventional mortgage. A year ago, the rate was 6.79.
The total dollar volume soared 46 percent in March 2025 due to the increase in sales ($95,039,490 vs. $64,933,986). The year-to-date total dollar volume rose 37 percent ($226,072,866 vs. 165,990,642).
The number of bank-owned or foreclosed homes as a percentage of all transactions was 1 percent (3 houses). The previous low percentage was 2 percent in March 2021, and the highest percentage in March was 60 percent in 2009.
Nationally:
Existing-home sales descended in March, according to the National Association of REALTORS®. Sales slid in all four major U.S. regions. Year-over-year, sales dropped in the Midwest and South, increased in the West, and were unchanged in the Northeast.
Total existing-home sales, which were completed transactions that include single-family homes, townhomes, condominiums, and co-ops – fell 5.9% from February to a seasonally adjusted annual rate of 4.02 million in March. Year-over-year, sales drew back 2.4% (down from 4.12 million in March 2024).
“Home buying and selling remained sluggish in March due to the affordability challenges associated with high mortgage rates,” said NAR Chief Economist Lawrence Yun.” Residential housing mobility, currently at historical lows, signals the troublesome possibility of less economic mobility for society.”
The median existing-home price for all housing types in March was $403,700, up 2.7% from one year ago ($392,900). All four U.S. regions registered price increases.
“In a stark contrast to the stock and bond markets, household wealth in residential real estate continues to reach new heights,” Yun said. “With mortgage delinquencies at near-historical lows, the housing market is on solid footing. A small deceleration in home price gains, which was slightly below wage-growth increases in March, would be a welcome improvement for affordability. With real estate asset valuation at $52 trillion, according to the Federal Reserve Flow of Funds, each percentage point gain in home prices adds more than $500 billion to the household balance sheet.”
In the Midwest, existing-home sales waned 5.0% in March to an annual rate of 950,000, down 3.1% from the previous year. The median price in the Midwest was $302,100, up 3.5% from March 2024.
First-time buyers were responsible for 32% of sales in March, up from 31% in February 2025 and identical to March 2024. NAR’s 2024 Profile of Home Buyers and Sellers – released November 2024 – 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 15% of homes in March, down from 16% in February and unchanged from March 2024.
Cash sales accounted for 26% of transactions in March, down from 32% in February and 28% in March 2024.
Total housing inventory registered at the end of March was 1.33 million units, up 8.1% from February and 19.8% from one year ago (1.11 million). Unsold inventory sits at a 4.0-month supply at the current sales pace, up from 3.5 months in February and 3.2 months in March 2024.
