In SWMI, the housing market celebrated its peak years starting in 2016 through 2020. Then, the pace slowed under the influence of Covid in 2021 and 2022, resulting in a dwindling supply of houses for sale, taking a toll on the local housing market. In 2023, sales began to increase with selling prices reaching the highest level since 2006. At the end of 2024, housing sales continued to rebound due to the growing inventory of houses for sale. Selling prices in December 2024 surpassed the record prices set in December 2023,” stated Luke Jeffries, Chief Executive Officer, Southwestern Michigan Association of REALTORS®, Inc.
Jeffries continued, “For eight months in 2024, the number of houses sold in a month of 2024 was higher than the same month in 2023. The average and median selling prices peaked in May at $416,819 and $290,000, respectively.”
The inventory of houses for sale across Allegan, Berrien, Cass, and the westerly 2/3 of Van Buren Counties at the end of 2024 increased 15 percent from 2023 (732 vs. 637). At the start of 2024, the inventory was at 3.6-months supply; it grew to 6.2-months supply in September, and the year ended with 4.4-months supply. For comparison, in 2014, the year started at 8.3-months supply, maxed at 12.0-months supply in July and August, then fell to 8.0-months supply at the end of the year..
In December 2024, the number of houses sold increased 15 percent compared to December 2023 (217 vs. 188). Year-to-date, sales in 2024 rose 1 percent to 2823 from 2786 in 2023.
The average selling price in December 2024 at $369,739 was 21 percent higher than the average selling price of $305,580 in December 2023. The highest selling price in the year-over-year comparison reached $377,156 in 2021.
The year-to-date average selling price of $377,668 climbed 6 percent over 2023 ($355,918), setting a new record in the year-over-year comparison.
The median selling price for December 2024 was $259,990, which rose 11 percent above the $233,501 median selling price for December 2023.
The year-to-date median selling price of $275,000 jumped 6 higher than the $260,000 in 2023 and set a new record in the year-over-year comparison.
The median price is the price at which 50% of the homes sold were above that price and 50% were below.
The yearly total dollar volume in 2024 increased 7 percent from December 2023 ($1,066,156,943 vs. $992,811,657).
Additional market notes include the number of houses sold each year stayed above 3000 from 2013 through 2022. Then, in 2023, the number of houses sold in the year dropped to 2786, followed by 2823 in 2024. Since 2013, the average selling price in SWMI has increased 110 percent ($377,668 vs $179,636).
There were four bank-owned or foreclosed homes as part of all transactions in December 2024, which was 2 percent. There were 47 houses in total in 2024. For most of 2024, the percentage was 2 percent or less.
The Freddie Mac mortgage rates rose from 6.13 in January and, at the end of the year, were 6.85. The rate peaked in April at 7.13 for a 30-year conventional mortgage.
Nationally:
Existing-home sales climbed in December, according to the National Association of REALTORS®. Sales advanced in three major U.S. regions and slipped in the Midwest. Year-over-year, sales accelerated in all four regions.
On an annual basis, existing-home sales (4.06 million) declined to the lowest level since 1995, while the median price reached a record high of $407,500 in 2024.
Total existing-home sales, which were completed transactions that include single-family homes, townhomes, condominiums, and co-ops – elevated 2.2% from November to a seasonally adjusted annual rate of 4.24 million in December. Year-over-year, sales swelled 9.3% (up from 3.88 million in December 2023).
“Home sales in the final months of the year showed solid recovery despite elevated mortgage rates," said NAR Chief Economist Lawrence Yun. “Home sales during the winter are typically softer than the spring and summer, but momentum is rising with sales climbing year-over-year for three straight months. Consumers clearly understand the long-term benefits of homeownership. Job and wage gains along with increased inventory, are positively impacting the market.”
The median existing-home price for all housing types in December was $404,400, up 6.0% from one year ago ($381,400). All four U.S. regions posted price increases.
“The median home price was elevated partly due to the upper-end market’s relative better performance,” Yun added. “Sales rose by 35% from a year ago for homes priced above $1 million, while sales fell for homes priced under $250,000.”
In the Midwest, existing-home sales slid 1.0% in December to an annual rate of 990,000, up 6.5% from the prior year. The median price in the Midwest was $298,600, up 9.0% from December 2023.
First-time buyers were responsible for 31% of sales in December, up from 30% in November 2024 and 29% in December 2023. 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.
Cash sales accounted for 28% of transactions in December, up from 25% in November but down from 29% in December 2023.
Individual investors or second-home buyers, who make up many cash sales, purchased 16% of homes in December, up from 13% in November and identical to December 2023.
Total housing inventory registered at the end of December was 1.15 million units, down 13.5% from November but up 16.2% from one year ago (990,000). Unsold inventory sits at a 3.3-month supply at the current sales pace, down from 3.8 months in November but up from 3.1 months in December 2023.
The numbers reported for local sales include residential property in Allegan, Berrien, Cass, and the westerly 2/3 of Van Buren Counties. They should not be used to determine the market value of any individual property. If you want to know the market value of your property, please contact your local REALTOR®.
About
The Southwestern Michigan Association of REALTORS®, Inc. 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.
The National Association of Realtors®, “The National Association of REALTORS® is America's largest trade association, representing 1.5 million members involved in all aspects of the residential and commercial real estate industries. The term REALTOR® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORS® and subscribes to its strict Code of Ethics.
