Home prices in Southwest Michigan continued to set records in November.
Southwest Michigan Association of Realtors CEO Alan Jeffries tells us although inventory has been going up, the average selling price for the month was up by 20% over the same month last year, at $408,000. He says a problem is the limited number of available homes in areas where people want to buy, so buyers are having to look farther away from their desired location.
What could make prices go down?
“Inventory,” Jeffries said. “We just need more. We need more affordable inventory, I guess is what I’m going to say. You know, with an average sales price of $408,000, that doesn’t make it very affordable for a lot of people that need to buy a house at $250,000.”
Jeffries says new homes being constructed tend to be higher end because they are still getting bought.
“I just think that right now builders can build in that 450 to 500 range, and they have buyers. So that’s what they’re building for. They’re not really building that entry-level housing. Right now, we’ll see what 2025 brings.”
Jeffries says builders will start to construct more entry level homes when the higher priced units stop selling. He is optimistic since this month’s “Escaping the Housing Trap” event with Strong Towns founder Charles Marohn in St. Joseph. Jeffries says a lot of community stakeholders came out and heard the message about encouraging the development of more homes that younger families could afford.
Overall, Jeffries says the Southwest Michigan real estate market has been slowing down but not contracting.
