Southwestern Michigan and National Housing Market Report for June 2022 - No Growth in Inventory - S
ST. JOSEPH, MI – “Facing no growth in inventory, the number of houses sold dropped 7 percent from a year ago. The current level of sales fell to that in 2014 before the market reached the peak years starting in 2016 and ending in 2019,” stated Alan Jeffries, Association Executive, Southwestern Michigan Association of REALTORS®, Inc.
Jeffries continued, “In June, the SWMI housing market saw the number of houses sold fall to 325 from 349 in June 2021. For the second month in the year’s peak season, sales in June were slightly higher than in May at 313.”
“At the end of the first half of 2022, the number of houses sold fell 13 percent from the record high in the market’s year-over-year comparison to 1523 from 1744 in June 2021,” Jeffries said.
The selling prices out-paced June 2021’s record selling prices in the year-over-year comparison. In June, the average selling price increased 5 percent from that in June 2021 ($346,051 vs. $330,887). The year-to-date average selling price of $333,223 was 6 percent higher than the $314,387 price in June 2021.
The median selling price rose 9 percent to $261,000 from $240,000 in June 2021.
Year-to-date, the median selling price climbed 10 percent ($242,000 vs. $219,900).
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 fell 3 percent in June 2022 ($112,466,861 vs. $115,479,891). The year-to-date total dollar volume at the end of June 2022 slipped 7 percent ($507,499,952 vs. $548,290,941).
The inventory of houses for sale showed very little growth from a year ago. There was a 1 percent growth from June 2021 (820 vs. 812). The inventory of houses for sale increased to a 3.6-months supply of inventory available for buyers, up from the 2.8-months supply in June 2021. For comparison, in June 2010, there were 3679 houses for sale and 16.9-months supply of inventory.
The number of bank-owned or foreclosed homes as a percentage of all transactions stayed at 1 percent in June, the same as in May and April. In January, the rate was 0 percent, the lowest in 2022. The previous lowest percentage in June was also 1 percent in 2021 and 2020. The highest percentage in June was 36 percent in 2009.
Nationally, the Freddie Mac mortgage rate was 5.70 in June, up from 5.1 in May for a 30-year conventional mortgage.
According to the National Association of Realtors®, – Existing home sales dropped for the fifth straight month in June. Three out of four major U.S. regions experienced month-over-month sales declines, and one region held steady. Year-over-year sales sank in all four regions.
Total existing-home sales, which were completed transactions that include single-family homes, townhomes, condominiums, and co-ops, dipped 5.4% from May to a seasonally adjusted annual rate of 5.12 million in June. Year-over-year, sales fell 14.2% (5.97 million in June 2021).
“Falling housing affordability continues to take a toll on potential home buyers,” said NAR Chief Economist Lawrence Yun. “Both mortgage rates and home prices have risen too sharply in a short span of time.”
“If consumer price inflation continues to rise, then mortgage rates will move higher,” Yun said. “Rates will stabilize only when signs of peak inflation appear. If inflation is contained, then mortgage rates may even decline somewhat.”
The median existing-home price for all housing types in June was $416,000, up 13.4% from June 2021 ($366,900), as prices increased in all regions. This marks 124 consecutive months of year-over-year increases, the longest-running streak on record.
Finally, there are more homes on the market," Yun added. "Interestingly though, the record-low pace of days on market implies a fuzzier picture on home prices. Homes priced right are selling very quickly, but homes priced too high are deterring prospective buyers."
At an annual rate of 670,000 in June, existing-home sales in the Northeast were unchanged from May and down 11.8% from June 2021. The median price in the Northeast was $453,300, a 10.1% jump from one year ago.
Existing-home sales in Midwest slid 1.6% from the previous month to an annual rate of 1,230,000 in June, retreating 9.6% from June 2021. The median price in the Midwest was $306,900, a 10.2% increase from one year before.
First-time buyers were responsible for 30% of sales in June, up from 27% in May and down from 31% in June 2021. NAR’s 2021 Profile of Home Buyers and Sellers – released in late 2021 – reported that the annual share of first-time buyers was 34%.
All-cash sales accounted for 25% of transactions in June, the same share as in May and up from 23% in June 2021.
Individual investors or second-home buyers, who make up many cash sales, purchased 16% of homes in June, unchanged from May and a slight increase from 14% in June 2021.
Nationally, the total housing inventory registered at the end of June was 1,260,000 units, an increase of 9.6% from May and a 2.4% rise from the previous year (1.23 million). Unsold inventory sits at a 3.0-month supply at the current sales pace, up from 2.6 months in May and 2.5 months in June 2021
Realtor.com®'s Market Trends Report in June shows that the largest year-over-year median list price growth occurred in Miami (+40.1%), Orlando (+30.6%), and Nashville (+30.6%). Austin reported the highest increase in the share of homes that had their prices reduced compared to last year (+24.7 percentage points), followed by Phoenix (+22.2 percentage points) and Las Vegas (+20.1 percentage points).
“Owning a home can create a path to financial freedom and lead to long-term wealth gains that families can pass on to future generations,” said NAR President Leslie Rouda Smith, a REALTOR® from Plano, Texas, and a broker associate at Dave Perry-Miller Real Estate in Dallas. “We will remain steadfast in our efforts to protect homeowner rights, and our members will continue to deliver valuable expertise to consumers throughout the home buying process.”
The numbers reported for local sales include residential property in Allegan, Berrien, Cass, and the westerly two-thirds of Van Buren counties and 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®.
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®, “That’s Who We R,” is America’s largest trade association, representing more than 1.4 million members involved in all aspects of the residential and commercial real estate industries.