January Housing Market Sales Increase, Prices rise Modestly, Rates Up Slightly
“Winter weather did not slow down the housing market in January. For the first time in a year the number of houses sold in January was higher than the same month in the previous year. The furious pace of the SWMI housing market in previous years is still restrained by available inventory, high mortgage rates, and rising selling prices,” stated Alan Jeffries, Association Executive, Southwestern Michigan Association of REALTORS®, Inc.
Jeffries continued, “In January 2024, the market ended with a low inventory of 569 houses for sale from 639 houses for sale in January 2023. Homebuyers in Allegan, Berrien, Cass, and the westerly 2/3 of Van Buren counties are facing a 3.6-months supply of homes, up slightly from the 3.3-months supply level in January 2023.”
The Freddie Mac mortgage rate in January was 6.63, up slightly from the December rate of 6.42 and up from the 6.13 rate in January 2023 for a 30-year conventional mortgage.
The average selling price in January rose 6 percent to $317,702 from $299,531 in January 2023. The January 2024 average selling price was 4 percent higher than the $305,580 price in December 2023.
The January 2024 median selling price jumped 21 percent compared to January 2023 ($244,950 vs. $202,000). The median selling price in December 2023 was $233,501.
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 at $50,645,745 was up 12 percent from the $45,229,257 collected in January 2023.
There were nine bank-owned or foreclosed homes transactions in January, or 6 percent of the closed transactions. The highest percentage in January was 57 percent in 2009.
Nationally:
According to the National Association of Realtors®, existing-home sales grew in January. Among the four major U.S. regions, sales accelerated in the Midwest, South, and West, and remained steady in the Northeast. Year-over-year, sales improved in the West, and decreased in the Northeast, Midwest, and South.
Total existing-home sales, which were completed transactions that include single-family homes, townhomes, condominiums, and co-ops- – elevated 3.1% from December to a seasonally adjusted annual rate of 4.00 million in January. Year-over-year, sales slipped 1.7% (down from 4.07 million in January 2023).
“While home sales remain sizably lower than a couple of years ago, January’s monthly gain is the start of more supply and demand,” said NAR Chief Economist Lawrence Yun. “Listings were modestly higher, and home buyers are taking advantage of lower mortgage rates compared to late last year.”
The median existing-home price for all housing types in January was $379,100, an increase of 5.1% from one year ago ($360,800). All four U.S. regions posted price increases.
“The median home price reached an all-time high for the month of January, “Yun added. “Multiple offers are common on mid-priced homes, and many homes were still sold within a month. The elevated share of cash deals – 32% – indicated a market full of multiple offers and propelled by record-high housing wealth.”
In the Midwest, existing-home sales increased 2.2% from one month ago to an annual rate of 950,000 in January, down 3.1% from last year. The median price in the Midwest was $271,700, up 7.6% from January 2023.
First-time buyers were responsible for 28% of sales in January, down from 29% in December and 31% in January 2023. NAR 2023 Profile of Home Buyers and Sellers – released in November 2023 – found that the annual share of first-time buyers was 32%.
All-cash sales accounted for 32% of transactions in January, up from 29% in both December and one year ago.
Individual investors or second-home buyers, who make up many cash sales, purchased 17% of homes in January, up from 16% in December and January 2023.
Total housing inventory registered at the end of end of January was 1.01 million units, up 2.0% from December and 3.1% from one year ago (980,000). Unsold inventory sits at a 3.0-month supply at the current sales pace, down from 3.1 months in December but up from 2.9 months in January 2023.
“More listings will help Americans move,” said NAR President Kevin Sears, broker-partner of Sears Real Estate in Springfield, Massachusetts. “That’s why NAR has pushed for the passage of H.R. 1321 – The More Homes on the Market Act – which would lower the tax hit on home sales and bring additional inventory to the market.”
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 more than 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.
The Housing Market in South Haven 49090 and SWMI
