According to the latest data, home sales in Southwest Michigan slowed down a bit for the month of June, while prices saw a slight uptick.
According to Alan Jeffries, Association Executive at Southwestern Michigan Association of Realtors, Inc, “the exact same number of houses, 367, was sold in June 2019 as in June 2018. In the previous two months, April and May, sales of homes were increasing by over 20 percent each month. June sales only increased 2 percent or 6 houses over sales in May. Houses sold in June 2019 had an average selling price of 14 percent higher than those sold in June 2018.”
At the end of the second quarter, the number of houses sold year-to-date increased 5 percent in June 2019 over the previous year (1669 vs. 1595).
The increased average selling prices in June 2019 raised the total dollar volume by 14 percent ($96,566,516 vs. $84,780,334). Year-to-date, the total dollar volume was up 8 percent ($389,389,518 vs. $359,747,465), and the monthly and year-to-date total dollar volumes set new records in the year-over-year comparison since 2006.
Jeffries adds, “the average selling price and the median selling price in June and year-do-date also set new records in the year-over-year comparison.”
The average selling price in June 2019 increased to $263,124 from $231,009 in June 2018 for a 14 percent increase. Year-to-date, the average selling price increased 3 percent ($233,307 vs. $225,547).
The median selling price jumped 8 percent to $186,001 in June 2019 from $172,000 in June 2018. Year-to-date, the median selling price at $169,000 was up 7 percent from June 2018 ($158,000).
The median price is the price at which 50 percent of the homes sold were above that price, and 50 percent were below.
The inventory of houses for sale dropped 4 percent below that in June 2018 (1721 vs. 1798). At 1721 houses, the market had a 6.7-months supply of homes for sale. In June 2010, the market had 16.9-month’s supply.
The number of bank-owned or foreclosed homes as a percentage of all transactions dropped to 4 percent from 6 percent in May. For the year, the percentage has been below double digits with the highest at 9 percent in January. The previous lowest percentage in June was also 5 percent in 2017. The highest percentage in June was 36 percent in 2009.
Locally, the mortgage rate decreased to 4.026 from 4.255 in May. Last year in June, the rate was 4.73. Nationally, the Freddie Mac mortgage rate in June dropped to 3.73 from 3.99 in May for a 30-year conventional mortgage.
According to the National Association of Realtors, existing-home sales weakened in June, as total sales saw a small decline after a previous month of gains, according to the NAR. While two of the four major U.S. regions recorded minor sales jumps, the South and the West experienced greater declines last month.
Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums, and co-ops, dropped 1.7% from May to a seasonally adjusted annual rate of 5.27 million in June. Sales as a whole are down 2.2 percent from a year ago (5.39 million in June 2018).
The NAR says other factors could be contributing to the low number of sales. “Either a strong pent-up demand will show in the upcoming months, or there is a lack of confidence that is keeping buyers from this major expenditure. It’s too soon to know how much of a pullback is related to the reduction in the homeowner tax incentive.”
The median existing-home price for all housing types in June reached an all-time high of $285,700, up 4.3% from June 2018 ($273,800). June’s price increase marks the 88th straight month of year-over-year gains.
Regionally, existing-home sales in the Midwest inched up 1.6 percent to an annual rate of 1.25 million, which is a 1.6 percent decline from June 2018. The median price in the Midwest was $230,400, a 6.7 percent jump up from a year ago.
First-time buyers were responsible for 35 percent of sales in June, up from 32 percent the month prior and up from the 31 percent recorded in June 2018. NAR’s 2018 “Profile of Home Buyers and Sellers” revealed that the annual share of first-time buyers was 33 percent.
As the share of first-time buyers rose, individual investors, who account for many cash sales, purchased 10 percent of homes in June, down from 13 percent recorded in both May 2019 and June 2018. All-cash sales accounted for 16 percent of transactions in June, down from May and a year ago (19 percent and 22 percent, respectively).
Nationally, the total housing inventory at the end of June increased to 1.93 million, up from 1.91 million existing-homes available for sale in May, but unchanged from the level of one year ago. Unsold inventory is at a 4.4-month supply at the current sales pace, up from the 4.3 month supply recorded in both May and in June 2018.
“Historically, these rates are incredibly attractive,” said NAR President John Smaby, a second-generation realtor from Edina, Minnesota and broker at Edina Realty. “Securing and locking in on a mortgage now – given the current, favorable conditions – is a decision that will pay off for years to come.”
The numbers reported for local sales include residential property in Berrien and Cass counties, and the westerly two thirds of Van Buren county and should not be used to determine the market value of any individual property. NAR says if you want to know the market value of your property, contact your local realtor.
