ST. JOSEPH, MI – “For the unofficial opening of the 2024 peak selling season in Southwest Michigan’s housing market, sales fell 12 percent from May 2023 and were 8 percent fewer than in April 2024. Selling prices continue to peak year-over-year, with May 2024 setting records and selling prices rising 3 to 4 percent higher than in May 2023. The inventory of houses rose 14 percent above that a year ago.,” stated Alan Jeffries, Association Executive, Southwestern Michigan Association of REALTORS®, Inc. 

 

Jeffries continued, “The number of houses sold in May plummeted 12 percent to 226 from 256 in May 2023. The level of sales in May 2024 fell to that in May 2009 (222). The highest number of sales in May was 352 in 2021. Year-to-date, sales were down 1 percent (983 vs. 995).”

 

A good sign for the market is that the inventory of houses for sale increased 14 percent, generating a 5.0-months supply at the end of May (804 vs. 703). The inventory in April was 4.2-months supply for buyers searching listings for sale across Allegan, Berrien, Cass, and the westerly two-thirds of Van Buren counties. For comparison, in May 2010, there were 3602 houses for sale.

 

In May 2024, the average selling price increased 4 percent to $416,819, compared to $401,016 in May 2023. Year-to-date, the average selling price rose 9 percent ($360,631vs. $330,498).

 

The median selling price in May 2024 increased 3 percent to $290,000 from $280,500 in May 2023. Year-to-date, the median selling price grew 10 percent to $265,000 from $240,000 in May 2023.

 

The median price is the price at which 50% of the homes sold were above that price and 50% were below.

 

With fewer houses selling, the total dollar volume fell 8 percent in May 2024 ($94,617,931 vs. $102,660,128). The year-to-date total dollar volume climbed 8 percent ($354,500,753 vs. $328,871,978). 

 

The number of bank-owned or foreclosed homes as a percentage of all transactions was 1 percent (2 houses). The previous low percentage was also 1 percent in May 2023, and the highest percentage in May was 34 percent in 2009.

 

The Freddie Mac mortgage rate in May was 7.03, down from 7.17 in April for a 30-year conventional mortgage. A year ago, the rate was 5.1.

 

Nationally:

According to the National Association of Realtors®, existing-home sales declined in May as the median sales price climbed to a record high. In the four major U.S. regions, sales slid month-over-month in the South but were unchanged in the Northeast, Midwest and West. Year-over-year, sales rose in the Midwest but receded in the Northeast, South, and West.

 

Total existing-home sales, which were completed transactions that include single-family homes, townhomes, condominiums, and co-ops - retreated 0.7% from April to a seasonally adjusted annual rate of 4.11 million in May. Year-over-year, sales waned 2.8% (down from 4.23 million in May 2023).

 

“Eventually, more inventory will help boost home sales and tame home price gains in the upcoming months,” said NAR Chief Economist Lawrence Yun. “Increased housing supply spells good news for consumers who want to see more properties before making purchasing decisions.”

 

The median existing-home price for all housing types in May was $419,300, the highest price ever recorded and an increase of 5.8% from one year ago ($396,500). All four U.S. regions registered price gains.

 

In the Midwest, existing-home sales were unchanged from one month ago at an annual rate of 1 million in May, up 1% from one year ago. The median price in the Midwest was $317,100, up 6.4% from May 2023.

“Home prices reaching new highs are creating a wider divide between those owning properties and those who wish to be first-time buyers,” Yun added. “The mortgage payment for a typical home today is more than double that of homes purchased before 2020. Still, first-time buyers in the market understand the long-term benefits of owning.”

 

First-time buyers were responsible for 31% of sales in May, down from 33% in April but up from 28% in May 2023. NAR's 2023 Profile of Home Buyers and Sellers – released in November 2023 – found that the annual share of first-time buyers was 33%.

 

Individual investors or second-home buyers, who make up many cash sales, purchased 16% of homes in May, identical to April and up from 15% in May 2023.

 

All-cash sales accounted for 28% of transactions in May, unchanged from April and up from 25% one year ago.

 

Total housing inventory at the end of May was 1.28 million units, up 6.7% from April and 18.5% from one year ago (1.08 million). Unsold inventory sits at a 3.7-month supply at the current sales pace, up from 3.5 months in April and 3.1 months in May 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.

 

Stay in the know.

Get a value-packed newsletter with up-to-date information on programs, events, and Southwest Michigan news delivered to your inbox.

Bridgman CGA