“Southwest Michigan’s housing market sales in March 2024 plunged 14 percent compared to sales in March 2023. Selling prices continue to rise to record levels for prices in March,” stated Alan Jeffries, Association Executive, Southwestern Michigan Association of REALTORS®, Inc.
Jeffries continued, “The number of houses sold in March dropped to 202 from 236 in March 2023. The level of sales in March 2024 was the lowest since March 2014. The highest number of sales in March was 286 in 2020. At the end of the first quarter of 2024, house sales were down 6 percent compared to 2023 (510 vs. 545).”
The inventory of houses for sale increased 5 percent, providing a 4.1-months supply at the end of March (641 vs. 612). 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 March 2014, there were 2219 houses for sale.
In March 2024, the average selling price increased slightly to $321,752 compared to $321,345 in March 2023. Year-to-date, the average selling price increased 9 percent ($325,471 vs. $299,667).
The median selling price in March 2024 increased 7 percent to $250,000 from $233,500 in March 2023. Year-to-date, the median selling price rose 12 percent to $245,000 from $219,000 in March 2023.
The median price is the price at which 50% of the homes sold were above that price and 50% were below.
The total dollar volume dropped 14 percent in March 2024 due to the decrease in sales ($64,933,986 vs. $75,837,608). The year-to-date total dollar volume rose 2 percent ($165,990,642 vs. $163,318,594).
The number of bank-owned or foreclosed homes as a percentage of all transactions was 2 percent (3 houses). The previous low percentage was 3 percent in March 2023, and the highest percentage in March was 60 percent in 2009.
The Freddie Mac mortgage rate in March was 6.79, down from 6.94 in February for a 30-year conventional mortgage. A year ago, the rate was 6.32.
Nationally:
According to the National Association of Realtors®, existing-home sales slipped in March. Among the four major U.S. regions, sales slid in the Midwest, South, and West, but rose in the Northeast for the first time since November 2023. Year-over-year, sales decreased in all regions.
Total existing-home sales, which were completed transactions that include single-family homes, townhomes, condominiums, and co-ops - receded 4.3% from February to a seasonally adjusted annual rate of 4.19 million in March. Year-over-year, sales waned 3.7% (down from 4.35 million in March 2023).
“Though rebounding from cyclical lows, home sales are stuck because interest rates have not made any major moves,” said NAR Chief Economist Lawrence Yun. “There are nearly six million more jobs now compared to pre-COVID highs, which suggests more aspiring home buyers exist in the market.”
The median existing-home price for all housing types in March was $393,500, an increase of 4.8% from the previous year ($375,300). All four U.S. regions registered price gains.
In the Midwest, existing-home sales retracted 1.9% from one month ago to an annual rate of 1.01 million in March, down 1.0% from the prior year. The median price in the Midwest was $292,400, up 7.5% from March 2023.
First-time buyers were responsible for 32% of sales in March, up from 26% in February and 28% in March 2023. NAR's 2023 Profile of Home Buyers and Sellers – released in November 2023 – found that the annual share of first-time buyers was 32%.
Individual investors or second-home buyers, who make up many cash sales, purchased 15% of homes in March, down from 21% in February and 17% in March 2023
All-cash sales accounted for 28% of transactions in March, down from 33% in February but up from 27% one year ago.
Total housing inventory at the end of March was 1.11 million units, up 4.7% from February and 14.4% from one year ago (970,000). Unsold inventory sits at a 3.2-month supply at the current sales pace, up from 2.9 months in February and 2.7 months in March 2023.
“More inventory is always welcomed in the current environment,” Yun added. “Frankly, it's a great time to list with ongoing multiple offers on mid-priced properties and, overall, home prices continuing to rise.”
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.
