“Winter weather did not dampen the housing market in January. For the second consecutive year, the number of houses sold in January was higher than the same month in the previous year. The year started with an elevated inventory, record selling prices, and a modest uptake in the mortgage rate,” stated Luke Jeffries, Association Executive, Southwestern Michigan Association of REALTORS ® , Inc.
Jeffries continued, “In January 2025, the market ended with an inventory of 715 houses for sale, up from 569 houses for sale in January 2024. Homebuyers in Allegan, Berrien, Cass, and the westerly 2/3 of Van Buren counties are facing a 4.3-months supply of homes, up slightly from the 3.6 supply level in January 2024.”
The Freddie Mac mortgage rate in January was 6.95 up slightly from the December rate of 6.85, and up from the 6.63 rate in January 2024 for a 30-year conventional mortgage.
The number of houses sold in January 2025 increased 9 percent above that sold in January 2024 (173 vs. 159).
The average selling price in January 2025 soared 32 percent to $416,393 from $315,077 in January 2024. The January 2025 average selling price was 13 percent lower than the $369,739 price in December 2024.
The January 2025 median selling price jumped 11 percent ($267,000 vs. $240,000). The median selling price in December 2024 was $259,990.
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 with the additional sales grew 44 percent to $72,036,007 from the $50,088,245 collected in January 2024.
There were two bank-owned or foreclosed homes as a percentage of all transactions in January, or 1 percent of the closed transactions. The highest percentage in January was 57 percent in 2009.
Nationally:
Existing-home sales retreated in January, according to the National Association of REALTORS®.
Sales slipped in three major U.S. regions and held steady in the Midwest. Year-over-year, sales rose in three regions and were unchanged in the South.
Total existing-home sales, which were completed transactions that include single-family homes, townhomes, condominiums, and co-ops – descended 4.9% from December to a seasonally adjusted annual rate of 4.08 million in January. Year-over-year, sales improved 2.0% (up from 4 million in January 2024).
“Mortgage rates have refused to budge for several months despite multiple rounds of short-term interest rate cuts by the Federal Reserve,” said NAR Chief Economist Lawrence Yun. “When combined with elevated home prices, housing affordability remains a major challenge.”
The median existing-home price for all housing types in January was $396,900, up 4.8% from one year ago ($378,600). All four U.S. regions registered price increases.
In the Midwest, existing-home sales were unchanged in January at an annual rate of 1 million, up 5.3% from the previous year. The median price in the Midwest was $290,400, up 7.2% from January 2024.
First-time buyers were responsible for 28% of sales in January, down from 31% in December 2024 and identical to January 2024. NAR's 2024 Profile of Home Buyers and Sellers – released 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 January, up from 16% in December and unchanged from January 2024.
Cash sales accounted for 29% of transactions in January, up from 28% in December but down from 32% in January 2024.
Total housing inventory registered at the end of January was 1.18 million units, up 3.5% from December and 16.8% from one year ago (1.01 million). Unsold inventory sits at a 3.5-month supply at the current sales pace, up from 3.2 months in December and 3.0 months in January 2024.
“More housing supply allows strongly qualified buyers to enter the market,” Yun added. “But for many consumers, both increased inventory and lower mortgage rates are necessary for them to purchase a different home or become first-time homeowners.”
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.
