ST. JOSEPH, MI – “In July, the housing market turned hot just like the weather in SWMI. House sales surpassed sales at the same time a year ago, which only happened three times in 2024. Selling prices continued to grow and set records in the year-over-year comparison that reaches back to 2006. July sales and prices also outshined those in June 2024 to bring year-to-date numbers up above that in 2023, with one exception,” stated Alan Jeffries, Association Executive, Southwestern Michigan Association of REALTORS®, Inc.
Jeffries continued, “The number of houses sold in July increased 12 percent from July 2023 (299 vs. 268); the market hasn’t experienced this level of sales in July since 2021. Year-to-date, 1523 houses were sold in July 2024, compared to 1546 houses in July 2023, for a 1 percent decline in sales.”
Following a 17 percent growth in the inventory of houses for sale in June, the market activity in July dropped the inventory at the end of July by 8 percent from the level in July 2023 (800 vs. 873). The months supply level increased to 5.9 for homebuyers from 3.9-months supply a year ago. For comparison, in July 2010, there were 3821 houses for sale for an 18.1-months supply of houses for homebuyers.
The average selling price in July 2024 rose 12 percent to $387,290 compared to $345,364 in July 2023. Year-to-date, in 2024, the average selling price grew 5 percent to $364,240 from $347,724.
The median selling price in July 2024, $295,000, jumped 13 percent from $260,250 in June 2023. Year-to-date, the median selling price increased by 8 percent ($270,000 vs. $250,000).
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 in July 2024 soared 25 percent compared to July 2023 ($115,799,923 vs. $92,649,098). The year-to-date total dollar volume increased 3 percent ($554,738,545 vs. $437,626,542).
The number of bank-owned or foreclosed homes as a percentage of all transactions stayed at 1 percent as it has since May. The previous lowest percentage was 0 percent in July 2021, and the highest percentage in July was 35 percent in 2009.
The Freddie Mac mortgage rate in July was 6.73, down from 6.86 in June for a 30-year conventional mortgage. A year ago, the rate was 6.81.
Nationally:
Existing-home sales improved in July, breaking a streak of four consecutive monthly declines, according to the National Association of REALTORS®. Three out of four major U.S. regions registered sales increases, while the Midwest remained steady. Year-over-year, sales rose in the Northeast and West but retreated in the Midwest and South.
Total existing-home sales, which were completed transactions that include single-family homes, townhomes, condominiums, and co-ops – ascended 1.3% from June to a seasonally adjusted annual rate of 3.95 million in July. Year-over-year, sales fell 2.5% (down from 4.05 million in July 2023).
“Despite the modest gain, home sales are still sluggish,” said NAR Chief Economist Lawrence Yun. “But consumers are definitely seeing more choices, and affordability is improving due to lower interest rates.”
The median existing-home price for all housing types in July was $422,600, up 4.2% from one year ago ($405,600). All four U.S. regions posted price increases.
In the Midwest, existing-home sales were unchanged in July at an annual rate of 920,000, down 5.2% from the previous year. The median price in the Midwest was $321,300, up 4.5% from July 2023.
First-time buyers were responsible for 29% of sales in July, identical to June but down from 30% in July 2023. NAR’s 2023 Profile of Home Buyers and Sellers – released in November 2023 – found that the annual share of first-time buyers was 32%.
Individual investors or second-home buyers, who make up many cash sales, purchased 13% of homes in July, down from 16% in June 2024 and July 2023.
All-cash sales accounted for 27% of transactions in July, down from 28% in June but up from 26% one year ago.
Total housing inventory at the end of July was 1.33 million units, up 0.8% from June and 19.8% from one year ago (1.11 million). Unsold inventory sits at a 4.0-month supply at the current sales pace, down from 4.1 months in June but up from 3.3 months in July 2023.
The numbers reported for local sales include residential property in Allegan, Berrien, Cass, and the westerly 2/3 of Van Buren Counties. They 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®.
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.
The Housing Market in Southwestern Michigan
