November Housing Market Sales Decline, Prices Set Records, Rates Starting to Fall
“The housing market sales in SWMI continued to decline for the eleventh month and stayed below the sales level in November for the last twelve years. Selling prices persistently set records, reaching the highest prices in November 2023, comparing back through the peak years to 2006,” stated Alan Jeffries, Association Executive, Southwestern Michigan Association of REALTORS®, Inc.
Jeffries continued, “The inventory of houses available for sale did not decrease as much as in other months in 2023, staying within 1 percent from a year ago (760 vs769). The months-supply level decreased slightly to 4.8, down from 4.9-months supply in October for homebuyers. For comparison, in November 2010, there were 3160 houses for sale for a 15.8-months supply of houses.”
The market witnessed a drop in the Freddie Mac mortgage rate for a 30-year conventional mortgage, decreasing to 7.22 from 7.79 in October. In November 2022, the rate was 6.49, and in 2021, the rate was 3.10.
November house sales plummeted 26 percent from November 2022 (206 vs. 277). Year-to-date in November, there were 2600 houses sold, compared to 3095 houses in November 2022, for a 16 percent decline in sales.
The average selling price in November 2023 increased 3 percent to $341,990 compared to $331,848 in November 2022. Year-to-date, at the end of November 2023, the average selling price rose 6 percent to $359,615 from $340,595 in November 2022.
The median selling price in November 2023 at $265,000 jumped 18 percent from $224,900 in November 2022. Year-to-date, the median selling price increased 6 percent ($260,625 vs. $245,001).
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 November 2023 plunged 23 percent compared to November 2022 ($71,159,000 vs. $91,922,130). The year-to-date total dollar volume fell 11 percent ($935,594,599 vs. $1,054,144,196).
The number of bank-owned or foreclosed homes as a percentage of all transactions increased to 2 percent from 1 percent in October. It was at 0 percent in November 2022. The highest percentage in November previously was 36 percent in 2010.
Nationally:
According to the National Association of Realtors®, existing-home sales grew in November, breaking a streak of five consecutive monthly declines. Among the four major U.S. regions, sales climbed in the Midwest and South but receded in the Northeast and West. All four regions experienced year-over-year sales decreases.
Total existing-home sales, which were completed transactions that include single-family homes, townhomes, condominiums, and co-ops- elevated 0.8% from October to a seasonally adjusted annual rate of 3.82 million in November. Year-over-year, sales fell 7.3% (down from 4.12 million in November 2022).
“The latest weakness in existing home sales still reflects the buyer bidding process in most of October when mortgage rates were at a two-decade high before the actual closings in November,” said NAR Chief Economist Lawrence Yun. “A marked turn can be expected as mortgage rates have plunged in recent weeks.”
The median existing-home price for all housing types in November was $387,600, an increase of 4.0% from November 2022 ($372,700). All four U.S. regions posted price increases.
“Home prices keep marching higher,” Yun added. “Only a dramatic rise in supply will dampen price appreciation.”
In the Midwest, existing-home sales rose 1.1% from the previous month to an annual rate of 940,000 in November, down 8.7% from one year ago. The median price in the Midwest was $280,800, up 4.9% from November 2022.
First-time buyers were responsible for 31% of sales in November, up from 28% in October 2023 and November 2022 NAR’s 2023. Profile of Home Buyers and Sellers – released in November– found that the annual share of first-time buyers was 32%.
All-cash sales accounted for 27% of transactions in November, down from 29% in October but up from 26% in November 2022
Individual investors or second-home buyers, who make up many cash sales, purchased 18% of homes in November, up from 15% in October and 14% one year ago.
Total housing inventory registered at the end of November was 1.13 million units, down 1.7% from October but up 0.9% from one year ago (1.12 million). Unsold inventory sits at a 3.5-month supply at the current sales pace, down from 3.6 months in October but up from 3.3 months in November 2022.
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.
SWMI & National Housing Market 
