“At the end of the peak selling season of 2024, house sales dropped 23 percent in September from August (255 vs. 330). August was the record month for the year in sales. Selling prices in September over the last nine years continued to rise and set records in the year-over-year comparison that reaches back to 2006,” stated Alan Jeffries, Association Executive, Southwestern Michigan Association of REALTORS®, Inc.
Jeffries continued, “The number of houses sold in September decreased 2 percent (four houses) from September 2023 (255 vs. 259). Year-to-date, 2108 houses were sold in September 2024, less than 1 percent (eleven houses) below the 2119 houses sold in September 2023.”
The inventory of houses for sale continued to grow. In September, it increased 20 percent compared to September 2023 (998 vs. 830). This growth raised the supply level to 6.2-months, up from 6.0-months in August 2024. For comparison, in September 2010, there were 3574 houses for sale for a 17.3-months supply of houses for homebuyers.
The average selling price in September 2024 rose 10 percent to $400,339 compared to $365,279 in September 2023. The September average selling price was the second highest in 2024, with May reaching $416,819. Year-to-date, in 2024, the average selling price grew 4 percent to $372,233 from $357,233.
The median selling price in September 2024, $285,000, increased less than 1 percent from $282,950 in September 2023. Year-to-date, the median selling price increased by 6 percent ($275,000 vs. $259,450).
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 in September 2024 increased 8 percent compared to September 2023. ($101,732,164 vs. $94,454,730). The year-to-date total dollar volume grew 3 percent ($784,388,228 vs. $756,720,984).
The number of bank-owned or foreclosed homes as a percentage of all transactions dropped back to 1 percent from the one-month increase of 2 percent in August. There were four houses included. The previous lowest percentage was 0 percent in September 2022, and the highest percentage in September was 37 percent in 2009.
The Freddie Mac mortgage rate in September was 6.08, down from 6.35 in August for a 30-year conventional mortgage. A year ago, the rate was 7.31.
Nationally:
Existing-home sales drew back in September, according to the National Association of REALTORS®. Three out of four major U.S. regions registered sales declines, while the West experienced a sales bounce. Year-over-year, sales fell in three regions but grew in the West.
Total existing-home sales, which were completed transactions that include single-family homes, townhomes, condominiums, and co-ops – receded 1.0% from August to a seasonally adjusted annual rate of 3.84 million in September. Year-over-year, sales waned 3.5% (down from 3.98 million in September 2023).
“Home sales have been essentially stuck at around a four-million-unit pace for the past 12 months, but factors usually associated with higher home sales are developing,” said NAR Chief Economist Lawrence Yun. “There are more inventory choices for consumers, lower mortgage rates than a year ago, and continued job additions to the economy. Perhaps, some consumers are hesitating about moving forward with a major expenditure like purchasing a home before the upcoming election.”
The median existing-home price for all housing types in September was $404,500, up 3.0% from one year ago ($392,700). All four U.S. regions registered price increases.
In the Midwest, existing-home sales slipped 2.2% in September to an annual rate of 900,000, down 5.3% from the prior year. The median price in the Midwest was $306,600, up 5.0% from September 2023.
“Moderating home price increases are welcome news for home buyers,” Yun added. “With wage growth now outpacing home price appreciation, housing affordability will improve.”
First-time buyers were responsible for 26% of sales in September – matching the all-time low from August 2024 and November 2021 – and down from 27% in September 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 16% of homes in September, down from 19% in August and 18% in September 2023.
All-cash sales accounted for 30% of transactions in September, up from 26% in August and 29% in September 2023.
Total housing inventory registered at the end of September was 1.39 million units, up 1.5% from August and 23.0% from one year ago (1.13 million). Unsold inventory sits at a 4.3-month supply at the current sales pace, up from 4.2 months in August and 3.4 months in September 2023.
“More inventory is certainly good news for home buyers as it gives consumers more properties to view before making a decision,” Yun said. “However, the inventory of distressed properties is minimal because the mortgage delinquency rate remains very low. Distressed property sales accounted for only 2% of all transactions in September.”
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.
