ST. JOSEPH, MI – “The SWMI housing market sales dropped 23 percent in September. This makes three consecutive months that sales have fallen more than 19 percent below sales from last year. Selling prices made moderate increases in September and year-to-date. Selling prices in September set records when compared to previous years. The overall market continued to do well even with the inventory of houses for sale dropping over 20 percent per month since June,” stated Alan Jeffries, Association Executive, Southwestern Michigan Association of REALTORS®, Inc.
Jeffries continued, “In September, 398 houses were sold, compared to 518 houses sold in September 2020, for a 23 percent decrease. Sales in September were slightly higher than in August (398 vs. 388).
Year-to-date, the number of houses sold at the end of September was 2895, up 6 percent over September 2020 (2895 vs.2721). At 2895 house, September set a new sales record in the year-over-year sales records since 2006. For the last nine months, the year-to-date sales have set records over previous years.
After selling prices in August declined slightly for the first time in 2021, selling prices in September were up slightly. Selling prices for the month and year-to-date surpass prices in 2021. The average selling price in September 2021 was $324,171 compared to $316,525 in September 2020, for a 2 percent increase. The year-to-date average selling price in September 2021 rose 11 percent over September 2020 ($319,758 vs. $287,218).
The median selling price in September 2021 rose 5 percent to $230,000 from $220,000 in September 2020. Year-to-date, the median selling price climbed 7 percent ($225,000 vs. $210,000). The year-to-date median selling price also set a new record price in the month of September in the year-over-year comparison.
The median price is the price at which 50% of the homes sold were above that price, and 50% were below.
The inventory of houses for sale fell 20 percent from a year ago (922 vs. 1156), bringing the inventory of houses for sale to a 3.4-months supply of inventory available for buyers. The inventory level in August was also at 3.4-months supply. For comparison, in September 2009, there were 3757 houses for sale and a 17.3-months supply of inventory.
The total dollar volume plunged 21 percent in September 2021 ($129,020,263 vs. $163,960,120). With the number of sales at higher prices, the year-to-date total dollar volume set a new record for the dollar volume at the end of September ($924,741,988 vs. $781,521,082). The year-to-date total dollar volume rose 18 percent.
There were three bank-owned or foreclosed homes as a percentage of all transactions in September. In January, the rate was 4 percent, the highest rate for the year. The previous lowest percentage in September was 1 percent in 2020. The highest percentage in September was 37 percent in 2009.
Nationally, the Freddie Mac mortgage rate in September was 3.01, up slightly from 2.87 in August for a 30-year conventional mortgage.
According to the National Association of Realtors®, existing-home rebounded in September after seeing sales wane the previous month. Each of the four major U.S. regions witnessed increases on a month-over-month basis. From a year-over-year timeframe, one region held steady while the three others each reported a decline in sales.
Total existing-home sales, which were completed transactions that include single-family homes, townhomes, condominiums, and co-ops, rose 7.0% from August to a seasonally adjusted annual rate of 6.29 million in September. However, sales decreased 2.3% from a year ago (6.44 million in September 2020).
“Some improvement in supply during prior months helped nudge up sales in September,” said Lawrence Yun, NAR’’s chief economist. “Housing demand remains strong as buyers likely want to secure a home before mortgage rates increase even further next year.”
The median existing-home price for all housing types in September was $352,800, up 13.3% from September 2020 ($311,500), as prices rose in each region. This marks 115 straight months of year-over-year increases.
“As mortgage forbearance programs end, and as homebuilders ramp up production – despite the supply-chain material issues – we are likely to see more homes on the market as soon as 2022,” said Yun.
Existing-home sales in the Midwest rose 5.1% to an annual rate of 1,440,000 in September, a 2.7% drop from a year ago. The median price in the Midwest was $265,300, a 9.1% increase from September 2020.
“As housing laws change and new legislation is proposed, NAR remains steadfast in its mission to promote and defend homeownership opportunities for all,” said NAR President Charlie Oppler, a Realtor® from Franklin Lakes, N.J., and the CEO of Prominent Properties Sotheby’s International Realty. “We continually work on behalf of consumers and our members to see inventory increased and ensure homebuyer and homeowner rights are protected.”
First-time buyers accounted for 28% of sales in September, down from 29% in August and 31% in September 2020. NAR’s 2020 Profile of Home Buyers and Sellers – released in late 2020 – revealed that the annual share of first-time buyers was 31%.
“First-time buyers are hit particularly hard by the historically high home prices as they largely do not have the savings required to buy a home or equity to offset such a purchase,” said Yun.”
Individual investors or second-home buyers, who account for many cash sales, purchased 13% of homes in September, down from 15% in August but up from 12% in September 2020. All-cash sales accounted for 23% of transactions in September, up from both 22% in August and from 18% in September 2020.
Nationally, the total housing inventory at the end of September amounted to 1.27 million units, down 0.8% from August and down 13.0% from one year ago (1.46 million). Unsold inventory sits at a 2.4-month supply at the present sales pace, down 7.7% from August and down from 2.7 months in September 2020.
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®.
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.