“Southwest Michigan’s housing market in February 2024 wiped out the sales gain started in January, and closed with 6 percent lower sales compared to February 2023 while January 2024 had a 6 percent gain in sales. Selling prices rose to record levels for prices in February,” stated Alan Jeffries, Association Executive, Southwestern Michigan Association of REALTORS®, Inc.
Jeffries continued, “The number of houses sold in February dropped 6 percent from February 2023 (148 vs. 158). The level of sales in February 2024 was the lowest since February 2011.
For the first two months of this year, the market, with the gain in January sales, held to within one house from 2023 (308 vs. 309). The highest number of sales in February was 471 in 2021.”
The inventory of houses for sale decreased 4 percent, providing a 3.7-months supply at the end of February (590 vs. 613). This level still needs to be higher for buyers searching listings for sale across Allegan, Berrien, Cass, and the westerly two-thirds of Van Buren counties. For comparison, in February 2010, there were 2969 houses for sale.
In February 2024, the average selling price was $340,148 compared to $267,416 in February 2023, a 27 percent surge. Year-to-date, the average selling price increased 16 percent ($327,911 vs. $283,109).
The median selling price in February 2024 increased by $11,000 to $236,000 from $225,000 in February 2023. Year-to-date, the median selling price rose 14 percent to $244,500 from $215,000 in February 2023.
The median price is the price at which 50% of the homes sold were above that price and 50% were below.
The lower sales but higher selling volume raised the total dollar volume 19 percent in February 2024 ($50,341,911 vs. $42,251,729). The year-to-date total dollar volume grew 15 percent ($100,996,656 vs. $87,480,386).
The number of bank-owned or foreclosed homes as a percentage of all transactions was 6 percent (9 houses), the same as in January. The previous low percentage was 2 percent in February 2023, and the highest percentage in February was 75 percent in 2009.
The Freddie Mac mortgage rate in February was 6.94, up from 6.63 in January for a 30-year conventional mortgage. A year ago, the rate was 6.50.
Nationally:
According to the National Association of Realtors®, existing-home sales climbed in February. Among the four major U.S. regions, sales jumped in the West, South and Midwest, and were unchanged in the Northeast. Year-over-year, sales declined in all regions.
Total existing-home sales, which were completed transactions that include single-family homes, townhomes, condominiums, and co-ops, bounced 9.5% from January to a seasonally adjusted annual rate of 4.38 million in February. Year-over-year, sales slid 3.3% (down from 4.53 million in February 2023).
“Additional housing supply is helping to satisfy market demand,” said NAR Chief Economist Lawrence Yun. “Housing demand has been on a steady rise due to population and job growth, though the actual timing of purchases will be determined by prevailing mortgage rates and wider inventory choices.”
The median existing-home price for all housing types in February was $384,500, an increase of 5.7% from the prior year ($363,600). All four U.S. regions posted price increases.
In the Midwest, existing-home sales propelled 8.4% from one month ago to an annual rate of 1.03 million in February, down 3.7% from the previous year. The median price in the Midwest was $277,600, up 6.8% from February 2023.
Individual investors or second-home buyers, who make up many cash sales, purchased 21% of homes in February, up from 17% in January and 18% in February 2023.
All-cash sales accounted for 33% of transactions in February, up from 32% in January and 28% one year ago.
Total housing inventory at the end of February was 1.07 million units, up 5.9% from January and 10.3% from one year ago (970,000). Unsold inventory sits at a 2.9-month supply at the current sales pace, down from 3.0 months in January but up from 2.6 months in February 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.
