“At the end of the third quarter of 2022, the SWMI local housing market lost ground in sales while selling prices set records each month. The housing inventory at 4.1-months supply reached the highest level for the year. We started the year with 470 houses for sale across Allegan, Berrien, Cass, and the westerly 2/3 of Van Buren Counties and at the end of September had 895 houses for sale. The mortgage rate climbed to 6.7 from 5.55 in August,” stated Alan Jeffries, Association Executive, Southwestern Michigan Association of REALTORS®, Inc.
Jeffries continued, “In September, the number of houses sold fell to 339 from 398 in September 2021, for a 15 percent drop in sales. Year-to-date sales were down 13 percent from 2021 (2524 vs. 2895).”
“The average and median selling prices in September and the year-to-date selling prices set records in the year-over-year comparison, which dates back to 2006,” Jeffries stated.
The average selling price rose 5 percent from that in September 2021 ($340,600 vs. $324,171). The year-to-date average selling price of $336,160 was 5 percent higher than the $319,758 price in September 2021.
The median selling price increased 10 percent to $252,000 from $230,000 in September 2021. Year-to-date, the median selling price rose 9 percent ($245,000 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 11 percent in September 2022 ($115,463,412 vs. $129,020,263). Year-to-date total dollar volume at the end of September 2022 dropped 8 percent ($848,468,979 vs. $924,741,988).
The inventory of houses for sale dropped 3 percent from September 2021 (895 vs. 922). With fewer houses selling, the inventory of houses for sale increased to a 4.1-months supply of inventory available for buyers, up from the 4.0-months supply in August 2022. For comparison, in September 2010, there were 3574 houses for sale and a 17.3-months supply of inventory.
There was only one house that was bank-owned or foreclosed as a percentage of all transactions taking the percentage back to 0 percent after five months at 1 percent. In January, the rate was 0 percent. The previous lowest percentage in September was 1 percent in 2021. The highest percentage in September was 37 percent in 2009.
Nationally, the Freddie Mac mortgage rate in September was 6.70, up from 5.50 in August for a 30-year conventional mortgage. A year ago, the rate was 3.01.
Nationally:
According to the National Association of Realtors®, – Existing home sales descended in September, the eighth month in a row of declines. Three out of the four major U.S. regions notched month-over-month sales contractions, while the West held steady. On a year-over-year basis, sales dropped in all regions.
Total existing-home sales, which were completed transactions that include single-family homes, townhomes, condominiums, and co-ops, retracted 1.5% from August to a seasonally adjusted annual rate of 4.71 million in September. Year-over-year, sales waned by 23.8% (down from 6.18 million in September 2021).
“The housing sector continues to undergo an adjustment due to the continuous rise in interest rates, which eclipsed 6% for 30-year fixed mortgages in September and are now approaching 7%,” said NAR Chief Economist Lawrence Yun. “Expensive regions of the country are especially feeling the pinch and seeing larger declines in sales.”
The median existing-home price for all housing types was $384,800, an 8.4% jump from September 2021 ($355,100), as prices climbed in all regions. This marks 127 consecutive months of year-over-year increases, the longest-running streak on record. It was the third month in a row, however, that the median sales price faded after reaching a record high of $413,800 in June, the usual seasonal trend of prices trailing off after peaking in the early summer.
Regionally:
Existing-home sales in the Northeast dwindled 1.6% from August to an annual rate of 610,000 in September, retreating 18.7% from September 2021. The median price in the Northeast was $418,500, an increase of 8.3% from one year ago.
Existing-home sales in the Midwest slid 1.7% from the previous month to an annual rate of 1,140,000 in September, falling 19.7% from September 2021. The median price in the Midwest was $281,500, up 6.9% from the prior year.
First-time buyers were responsible for 29% of sales in September, unchanged from August 2022 and slightly higher than 28% from September 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 22% of transactions in September, down from 24% in August and 23% in September 2021.
Individual investors or second-home buyers, who make up many cash sales, purchased 15% of homes in September, down from 16% in August, but up from 13% in September 2021.
Nationally, the total housing inventory registered at the end of September was 1.25 million units, which was down 2.3% from August and 0.8% from the previous year. Unsold inventory sits at a 3.2-month supply at the current sales pace – unchanged from August and up from 2.4 months in September 2021.
“Despite weaker sales, multiple offers are still occurring with more than a quarter of homes selling above list price due to limited inventory, ”Yun added. “The current lack of supply underscores the vast contrast with the previous major market downturn from 2008 to 2010 when inventory levels were four times higher than they are today.”
Realtor.com®‘s Market Trends Report in September shows that the largest year-over-year median list price growth occurred in Miami (+28.3%), Memphis (+27.3%), and Milwaukee (+27.0%). Phoenix reported the highest increase in the share of homes that had their prices reduced compared to last year (+32.3 percentage points), followed by Austin (+27.4 percentage points) and Las Vegas (+20.0 percentage points).
“Buying or selling a home involves a series of requirements and variables, and it’s important to have someone in your corner from start to finish to make the process as smooth as possible,” said NAR President Leslie Rouda Smith, a REALTOR® from Plano, Texas, and a broker associate at Dave Perry-Miller Real Estate in Dallas. “REALTORS® rely on in-depth knowledge of the market and objectivity to deliver trusted expertise to consumers in every U.S. ZIP code.”
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®.
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®, “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.
August 2022 SWMI Housing Market – Sales Continue to Decline Due to Low Inventory
