“Southwest Michigan’s housing market sales and prices at the end of the first quarter of 2026 fell solidly behind the market in 2025. First-quarter sales dropped 19 percent this year compared to March 2025. However, sales increased 26 percent over sales in February, with
the average selling prices rising 18 percent higher in March 2026 than in February,” stated Luke Jeffries, Association Executive, Southwestern Michigan Association of REALTORS ® , Inc.
Jeffries continued, “The number of houses sold in March plummeted 23 percent to 173 from 226 in March 2025. The level of sales in March reflects the influence of many economic factors, including the mortgage rate, since sales peaked at 286 in March 2020.”
At the end of the first quarter of 2026, house sales fell 19 percent compared to 2025 (445 vs. 550).
The inventory of houses for sale declined 18 percent, providing a 3.8-months supply at the end of March (612 vs. 746). This inventory level has held steady each month in the first quarter; however, the market needs to shift in mortgage rates, selling prices, and other factors to benefit sellers and buyers across Allegan, Berrien, Cass, and the westerly two-thirds of Van Buren counties included in the SWMI market. For comparison, in March 2010, there were 3602 houses for sale concluded,” Jeffries.
In March 2026, the average selling price decreased 5 percent to $400,156, compared to $420,528 in March 2025. Year-to-date, the average selling price decreased 3 percent ($400,481 vs. $411,039).
The median selling price in March 2026 dipped 2 percent to $285,000 from $289,950 in March 2025. Year-to-date, the median selling price slipped 1 percent to $275,000 from $277,495 in March 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 March was 6.38 up from 5.98 in February for a 30-year conventional mortgage. A year ago, the rate was 6.79.
The total dollar volume plunged 27 percent in March 2026 due to the decrease in sales ($69,230,902 vs. $95,039,490). The year-to-date total dollar volume fell 21 percent ($178,218,105 v s.226,072,866).
The number of bank-owned or foreclosed homes as a percentage of all transactions was 2 percent (4 houses). The previous low percentage was 1 percent in March 2025, and the highest percentage in March was 60 percent in 2009.
Nationally:
Existing-home sales decreased by 3.6% month-over-month in March, 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, price, and inventory.
Month-over-month sales fell in all four regions. Year-over-year sales rose in the South and West and fell in the Northeast and Midwest.
Total existing-home sales, which were completed transactions that include single-family homes, townhomes, condominiums, and co-ops – decreased 3.6% to a seasonally adjusted annual rate of 3.98 million in March. Year-over-year, sales fell 1.0%.
“March home sales remained sluggish and below last year’s pace,” said NAR Chief Economist Dr. Lawrence Yun. “Lower consumer confidence and softer job growth continue to hold back buyers.”
The median existing-home price for all housing types in March was $408,800, up 1.4% from one year ago ($403,100) -- the 33rd consecutive month of year-over-year price increases.
In the Midwest, existing-home sales decreased 4.2% in March to an annual rate of 920,000, down 3.2% from the previous year. The median price in the Midwest was $315,500, up 4.9% from March 2025.
First-time buyers were responsible for 32% of sales in March, down from 34% in February 2026 and unchanged from one year ago.
Individual investors or second-home buyers, who make up many cash sales, purchased 18% of homes in March, up from 16% last month and 15% one year ago.
Cash sales accounted for 27% of transactions in March, down from 31% in February and up from 26% in March 2025.
Total housing inventory at the end of March decreased to 1.36 million units, up 3.0% from February and 2.3% from March 2025 (1.11 million). Unsold inventory sits at a 4.1, was up 3.8-months from February and up from 4.0-months one year ago.
