“Halfway through 2024, sales-to-date were down 4 percent from June 2023. June housing sales increased 7 percent above that in May 2024 (241 vs. 226), helping to build the peak selling season. The good news for buyers is that inventory grew 17 percent from June 2023, and average selling prices dropped from prices in May 2024. In the year-over-year comparison, the average and median selling prices in June 2024 dropped below the record-setting prices for June in the year-over-year comparison dating back to 2006,” stated Alan Jeffries, Association Executive, Southwestern Michigan Association of REALTORS®, Inc.
Jeffries continued, “The number of houses sold in June plunged 15 percent from June 2023 (241 vs. 283); the market hasn’t experienced this level of sales in June since 2010. Year-to-date, 1224 houses were sold in June 2024, compared to 1278 houses in June 2023, for a 4 percent decline in sales.”
The inventory of houses for sale grew 17 percent above the level available a year ago (889 vs. 760). Due to the lower sales volume, the months supply level increased slightly for homebuyers to 5.7 from 4.3-months supply a year ago. For comparison, in June 2010, there were 3679 houses for sale for a 16.9-months supply of houses for homebuyers.
The average selling price in June 2024 fell 15 percent to $349,616 compared to $411,289 in June 2023. Year-to-date, in 2024, the average selling price in June rose 3 percent to $358,462 from $348,227.
The median selling price in June 2024, $275,000, shrunk 3 percent from $284,500 in June 2023. Year-to-date, the median selling price increased by $15,000 ($265,000 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 June 2024 tumbled 18 percent compared to June 2023 ($84,257,669 vs. $102,660,128). The year-to-date total dollar volume slipped 1 percent ($438,758,422 vs. $444,977,444).
The number of bank-owned or foreclosed homes as a percentage of all transactions stayed at 1 percent as it was in May. The previous lowest percentage was 1 percent in June 2022 and 2021, and the highest percentage in June was 36 percent in 2009.
The Freddie Mac mortgage rate in June was 6.86, down from 7.03 in May for a 30-year conventional mortgage. A year ago, the rate was 6.71.
Nationally:
According to the National Association of Realtors®, existing-home sales fell in June as the median sales price climbed to the highest price ever recorded for the second consecutive month. All four major U.S. regions posted sales declines. Year-over-year, sales waned in the Northeast, Midwest, and South but were unchanged in the West.
Total existing-home sales, which were completed transactions that include single-family homes, townhomes, condominiums, and co-ops – receded 5.4% from May to a seasonally adjusted annual rate of 3.89 million in June. Year-over-year, sales also dropped 5.4% (down from 4.11 million in June 2023).
“We’re seeing a slow shift from a seller’s market to a buyer’s market,” said NAR Chief Economist Lawrence Yun. “Homes are sitting on the market a bit longer, and sellers are receiving fewer offers. More buyers are insisting on home inspections and appraisals, and inventory is definitively rising on a national basis.”
The median existing-home price for all housing types in June was $426,900, an all-time high and an increase of 4.1% from one year ago ($410,100). All four U.S. regions registered price gains.
In the Midwest, existing-home sales decreased 8% from one month ago to an annual rate of 920,000 in June, down 6.1% from the prior year. The median price in the Midwest was $327,100, up 5.5% from June 2023.
“Even as the median home price reached a new record high, further large accelerations are unlikely,” Yun added. “Supply and demand dynamics are nearing a balanced market condition. The months supply of inventory reached its highest level in more than four years.”
First-time buyers were responsible for 29% of sales in June, down from 31% in May but up from 27% in June 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 16% of homes in June, identical to May and down from 18% in June 2023.
All-cash sales accounted for 28% of transactions in June, unchanged from May and up from 26% one year ago.
Total housing inventory at the end of June was 1.32 million units, up 3.1% from May and 23.4% from one year ago (1.07 million). Unsold inventory sits at a 4.1-month supply at the current sales pace, up from 3.7 months in May and 3.1 months in June 2023. The last time unsold inventory posted a four-month supply was May 2020 (4.5 months).
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.
2024 SWMI & National Housing Market – May Sales Fell 12%, Selling Prices Set Records
