“Southwest Michigan’s housing market sales in August 2025 were the highest of the year and were the first time in the year when sales were over 300 homes sold. Sellers benefited from higher selling prices in August compared to August 2024. Selling prices reached their highest level compared to a year ago and for the last twenty years in the year-over-year comparison,” stated Luke Jeffries, Association Executive, Southwestern Michigan Association of REALTORS ® , Inc.
Jeffries continued, “The number of houses sold in August dropped 5 percent to 314 from 329 in August 2024. Year-to-date, the number of houses sold increased 1 percent (1,863 vs. 1,845).” The inventory of houses for sale grew 4 percent from August 2024 (1015 vs. 973). At the end of August, there was a 6.2-months supply of houses. This level increased from the 6.0-months supply available in August 2024. This inventory level is what is available for homebuyers searching listings for sale across Allegan, Berrien, Cass, and the western two-thirds of Van Buren counties. For comparison, in August 2010, there were 3757 houses for sale.
In August 2025, the average selling price rose 8 percent to $417,616 from $387,911 in August 2024 but did not reach the average selling price of $424,997 in July 2025. In 2025, June holds the record for the highest average selling price at $430,096. Year-to-date, the average selling price increased 14 percent ($419,553 vs. $367,920).
The median selling price in August 2025 increased 7 percent to $320,000 from $300,000 in August 2024. Year-to-date, the median selling price rose 7 percent to $295,000 from $275,000 in August 2024.
The median price is the price at which 50% of the homes sold were above that price and 50% were below.
The Freddie Mac mortgage rate in August dropped to 5.69, down from 6.72 in July for a 30-year conventional mortgage. A year ago, the rate was 6.35.
In August, the total dollar volume for the month compared to the same period last year increased 3 percent ($131,131,572 vs. $127,622,719). The year-to-date total dollar volume jumped 15 percent ($781,627,678 vs. $678,853,664).
The number of bank-owned or foreclosed homes as a percentage of all transactions remained at 1 percent in August, with two houses. The previous low percentage was 0 percent in August 2021, and the highest percentage was 36 percent in August 2009.
Nationally:
Existing-home sales remained essentially the same in August, ticking down by 0.2% from July, according to the National Association of REALTORS ® Existing-Home Sales Report. The Report provides the real estate ecosystem, including agents, home buyers, and sellers, with data on the level of home sales, price, and inventory.
Month-over-month sales increased in the Midwest and West, and fell in the Northeast and South. Year-over-year, sales rose in the Midwest and South, and fell in the Northeast and West.
Total existing-home sales, which were completed transactions that include single-family homes, townhomes, condominiums, and co-ops, decreased 0.2% in total sales month-over-month to a seasonally adjusted annual rate of 4.0 million in August. Year-over-year sales have increased 1.8%.
“Home sales have been sluggish over the past few years due to elevated mortgage rates and limited inventory," said NAR Chief Economist Lawrence Yun. “However, mortgage rates are declining, and more inventory is coming to the market, which should boost sales in the coming months.”
“Record-high housing wealth and a record-high stock market will help current homeowners trade up and benefit the upper end of the market. However, sales of affordable homes are constrained by the lack of inventory,” Yun added. “The Midwest was the best-performing region last month, primarily due to relatively affordable market conditions. The median home price in the Midwest is 22 percent below the national median price.”
The total housing inventory, at 1.53 million units, was down 1.3% from July and up 11.7% from August 2024 (1.37 million units). The current inventory is at 4.6-month supply, which did not change from July and was up from 4.2-months in August 2024.
The median existing-home price for all housing types in August was $422,600, up 0. 2% from one year ago ($414,200) – the 26th consecutive month of year-over-year price increases.
In the Midwest, existing-home sales increased 2.1% month-over-month to an annual rate of 960,000, up 3.2% year-over-year. The median price in the Midwest was $333,500, up 4.5% from August 2024.
First-time buyers were responsible for 28% of sales in August, unchanged from July and up from 26% in August 2024.
Individual investors or second-home buyers, who account for many cash sales, purchased 21% of homes in August, up slightly from 20% last month and 19% in August 2024.
Cash sales accounted for 28% of transactions in August, down from 31% a month ago and up from 26% in August 2024.
