In October, the local SWMI housing market nearly mirrored the market results in October 2023. Sales were higher in October than in September (269 vs. 255). Selling prices increased 2 percent in October 2024 over October 2023. Selling prices in October over the last four years continued to rise and set records in the year-over-year comparison back to 2006,” stated Alan Jeffries, Association Executive, Southwestern Michigan Association of REALTORS®, Inc.
Jeffries continued, “The number of houses sold in October decreased by 1 percent (four houses) from October 2023 (269 vs. 273). Year-to-date, 2376 houses were sold in October 2024, less than 1 percent (seventeen houses) below the 2393 houses sold in October 2023.”
The inventory of houses for sale continued to grow in October, rising 19 percent above the level in October 2023 (953 vs. 802). For comparison, in October 2010, there were 3385 houses for sale for a 16.6-months supply of houses for homebuyers.
The average selling price in October 2024 increased 2 percent to $400,250 compared to $392,273 in October 2023. The October average selling price was the third time in 2024 that the average selling price rose above the $400,000 mark, with May reaching $416,819 and September $400,339. Year-to-date, in 2024, the average selling price grew 4 percent to $375,419 from $361,102.
The median selling price in October 2024, $279,500, increased less than 2 percent from $274,500 in October 2023. Year-to-date, the median selling price increased by 7 percent ($277,000 vs. $260,000).
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 October 2024 increased 1 percent compared to October 2023. ($108,512,158 vs. $106,950,822). The year-to-date total dollar volume grew 3 percent ($892,492,886 vs. $864,405,599).
The number of bank-owned or foreclosed homes as a percentage of all transactions jumped to 3 percent from 1 percent in September. There were eight houses included. The previous lowest percentage was 1 percent in October 2021, and the highest percentage in October was 34 percent in 2009.
The Freddie Mac mortgage rate in October climbed to 6.72 from 6.08 in September for a 30-year conventional mortgage. A year ago, the rate was 7.79.
Nationally:
Existing-home sales rose in October, according to the National Association of REALTORS®. Sales improved in all four major U.S. regions. Year-over-year, sales elevated in three regions but were unchanged in the Northeast.
Total existing-home sales, which were completed transactions that include single-family homes, townhomes, condominiums, and co-ops – expanded 3.4% from September to a seasonally adjusted annual rate of 3.96 million in October. Year-over-year, sales progressed 2.9% (up from 3.85 million in October 2023).
“The worst of the downturn in home sales could be over, with increasing inventory leading to more transactions,” said NAR Chief Economist Lawrence Yun. “Additional job gains and continued economic growth appear assured, resulting in growing housing demand. However, for most first-time homebuyers, mortgage financing is critically important. While mortgage rates remain elevated, they are expected to stabilize.”
The median existing-home price for all housing types in October was $407,200, up 4.0% from one year ago ($391,600). All four U.S. regions registered price increases.
In the Midwest, existing-home sales bounced 6.7% in October to an annual rate of 950,000, up 1.1% from the prior year. The median price in the Midwest was $305,300, up 7.2% from October 2023.
“The ongoing price gains mean increasing wealth for homeowners nationwide,” Yun added. “Additional inventory and more home building activity will help price increases moderate next year.”
First-time buyers were responsible for 27% of sales in October – up from 26% in September but down from 28% in October 2023. NAR's 2024 Profile of Home Buyers and Sellers – released in November 2024 – found that the annual share of first-time buyers was 24%, the lowest ever recorded.
Individual investors or second-home buyers, who make up many cash sales, purchased 17% of homes in October, up from 16% in September and 15% in October 2023.
All- cash sales accounted for 27% of transactions in October, down from 30% in September and 29% in October 2023.
Total housing inventory registered at the end of October was 1.37 million units, up 0.7% from September and 19.1% from one year ago (1.15 million). Unsold inventory sits at a 4.2-month supply at the current sales pace, down from 4.3 months in September but up from 3.6 months in October 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.
