“Southwest Michigan’s housing market sales in July 2026 were down 1 percent from June but were 13 percent higher than last year in July. Homebuyers faced the highest mortgage rate for the year so far. The good news for homebuyers was that selling prices were lower in July than in June. The average selling price was also lower than in July 2025,” stated Luke Jeffries, Association Executive, Southwestern Michigan Association of
REALTORS ® , Inc.
Jeffries continued, “The number of houses sold in July increased 13 percent to 298 from 264 in July 2025. Year-to-date, the number of houses sold decreased 3 percent (1498 vs. 1,549).”
The inventory of houses for sale grew 9 percent from July 2025 (1014 vs. 932). At the end of July, there was a 6.3-months supply of houses for sale. This level increased from the 6.0-months supply available in June. 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 July 2010, there were 3821 houses for sale.
In July 2026, the average selling price dropped 2 percent to $415,710 from $424,997 in July 2025. June holds the record for the highest average selling price in 2026 at $433,047. Year-to- date, the average selling price also dropped 2 percent ($409,273 vs. $418,170).
The median selling price in July 2026 increased slightly to $320,000 from $318,500 in July 2025. Year-to-date, the median selling price rose 3 percent to $299,999 from $290,000 in July 2025.
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 July was 6.54 up from 6.43 in June, and 6.48 in May, for a 30-year conventional mortgage. A year ago, the rate was 6.73.
The increase in sales in July resulted in an 11 percent increase in the total dollar volume for the month compared to the same period last year ($123,881,706 vs. $112,199,356). The year-to-date total dollar volume plunged 5 percent ($613,091,756 vs. $647,746,006).
The number of bank-owned or foreclosed homes as a percentage of all transactions was 2 percent, with two houses. The previous low percentage was 0 percent in July 2021, and the highest percentage was 35 percent in July 2009.
Nationally:
Existing-home sales decreased by 1.7% month-over-month and increased 0.7% year-over-year, according to the National Association of REALTORS ® Existing-Home Sales report. The Report provides the real estate ecosystem, including agents, homebuyers, and sellers, with data on the level of home sales, prices, and inventory.
Month-over-month sales increased in the Northeast, held steady in the West, and declined in the Midwest and South. Year-over-year sales rose in the Midwest and West and were flat in the Northeast and South.
“Home sales have been remarkably stable, even amid the rising mortgage rate environment of the past few months,” said NAR Chief Economist Lawrence Yun. “Year-to-date sales are up 2.4%, and there’s no doubt that the housing market would be thriving if average mortgage rates were to return near 6%.”
Total existing-home sales, which were completed transactions that include single-family homes, town homes, condominiums, and co-ops, decreased 1.7% in total sales month-over-month to a seasonally adjusted annual rate of 4.06 million in July.
“Though the national data shows stabilization, there are notable local market variations,” Yun said. “In smaller cities, and particularly in the Midwest, an annual household income of $60,000 would be sufficient to buy a median-priced home. Working with an agent who is a REALTOR® will help you better pinpoint what’s happening in your area,” Dr. Yun continued.
The median existing-home price for all housing types in July was $434,100, up 2.0% from one year ago ($425,700) – the 37th consecutive month of year-over-year price increases.
In the Midwest, existing-home sales fell 2.0% month-over-month to an annual rate of 970,000, up 2.1% year-over-year. The median price in the Midwest was $342,900, up 2.8% from July 2025.
First-time homebuyers accounted for 29% of sales, down from 33% in June and up from 28% July 2025.
Individual investors or second-home buyers accounted for 14% of transactions, up from 13% last month and down from 20% one year ago.
Cash sales represented 26% of transactions, up from 25% last month and down from 31% one year ago.
The total housing inventory at the end of July was 1.54 million units, down 1.9% from June and down 0.6% from July 2025. Unsold inventory sits at a 4.6-month supply, unchanged from last month and one year ago.
