“The local housing market is adjusting and impacting buyers and sellers. For the second consecutive month, there has been little or no growth in the number of houses for sale. Selling prices have set records each month this year with the exceptions of January and April in the year-over-year comparison,” stated Alan Jeffries, Association Executive, Southwestern Michigan Association of REALTORS®, Inc.
Jeffries continued, “In July, the SWMI housing market saw the number of houses sold fall to 322 from 388 in July 2021, for a 17 percent drop in sales. For the third month in the year’s peak season, sales in July at 322 were slightly lower than in June at 325 and slightly higher than in May at 313. Year-to-date sales were down 13 percent from 2021 (1845 vs. 2132).”
“Except for the average selling price in July, the year-to-date selling prices and the median selling price set records in the year-over-year comparison, which dates back to 2006,” Jeffries said.
The average selling price fell 8 percent from that in July 2021 ($324,567 vs. $351,131). The year-to-date average selling price of $331,644 was 3 percent higher than the $321,074 price in July 2021.
The median selling price increased 4 percent to $249,750 from 240,500 in July 2021.
Year-to-date, the median selling price rose 8 percent ($243,000 vs. $225,000).
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 fell 23 percent in July 2022 ($104,510,719 vs. $136,238,880). The year-to-date total dollar volume at the end of July 2022 fell 11 percent ($611,884,673 vs. $684,530,317).
The inventory of houses for sale has slowed the free-fall of available listings to a 2 percent decrease from 2021 (873 vs. 889). The inventory of houses for sale increased to a 3.9-months supply of inventory available for buyers, up from the 3.6-months supply in June 2021. For comparison, in July 2010, there were 3821 houses for sale and an 18.1-months supply of inventory.
The number of bank-owned or foreclosed homes as a percentage of all transactions stayed at 1 percent in July, the same as in June, May, and April. In January, the rate was 0 percent, the lowest in 2022. The previous lowest percentage in July was 0 percent in 2021. The highest percentage in July was 35 percent in 2009.
Nationally, the Freddie Mac mortgage rate was 5.30 in July, down from 5.7 in June for a 30-year conventional mortgage.
According to the National Association of Realtors®, – Existing home sales sagged for the sixth straight month in July. All four major U.S. regions recorded month-over-month and year-over-year sales declines.
Total existing-home sales, which were completed transactions that include single-family homes, townhomes, condominiums, and co-ops, slipped 5.9% from June to a seasonally adjusted annual rate of 4.81 million in July. Year-over-year, sales fell 20.2% (6.03 million in July 2021).
“The ongoing sales decline reflects the impact of the mortgage rate peak of 6% in early June,” said NAR Chief Economist Lawrence Yun. “Home sales may soon stabilize since mortgage rates have fallen to near 5%, thereby giving an additional boost of purchasing power to home buyers.”
The median existing-home price for all housing types in July was $403,800, up 10.8% from July 2021 ($364,600), as prices increased in all regions. This marks 125 consecutive months of year-over-year increases, the longest-running streak on record.
“We’re witnessing a housing recession in terms of declining home sales and home building,” Yun added. “However, it’s not a recession in home prices. Inventory remains tight, and prices continue to rise nationally with nearly 40% of homes still commanding the full list price.”
Existing-home sales in the Northeast slid to an annual rate of 620,000 in July, down 7.5% from June and 16.2% from July 2021. The median price in the Northeast was $444,000, an increase of 8.1% from the previous year.
Existing-home sales in the Midwest declined 3.3% from the prior month to an annual rate of 1,190,000 in July, dropping 14.4% from July 2021. The median price in the Midwest was $293,300, up 7.0% from the previous year.
First-time buyers were responsible for 29% of sales in July, down from 30% in June and also in July 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 24% of transactions in July, down from 25% in June, but up from 23% in July 2021.
Individual investors or second-home buyers, who make up many cash sales, purchased 14% of homes in July, down from 16% in June and 15% in July 2021.
Nationally, the total housing inventory registered at the end of July was 1,310,000 units, an increase of 4.8% from June and unchanged from the previous year. Unsold inventory sits at a 3.3-month supply at the current sales pace, up from 2.9 months in June and 2.6 months in July 2021.
Realtor.com®‘s Market Trends Report in July shows that the largest year-over-year median list price growth occurred in Miami (+36.2%), Memphis (+32.7%), and Orlando (+28.4%). Phoenix reported the highest increase in the share of homes that had their prices reduced compared to last year (+31.8 percentage points), followed by Las Vegas (+28.6 percentage points) and Austin (+27.8 percentage points)
“Buying a home remains a worthwhile investment that brings an unmatched combination of security, freedom, and accomplishment associated with the American Dream,” said NAR President Leslie Rouda Smith, a REALTOR® from Plano, Texas, and a broker associate at Dave Perry-Miller Real Estate in Dallas. “REALTORS® serve as consumer champions who provide trusted guidance and insight to help home buyers and sellers achieve their goals.”
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.