“Housing sales and prices, year-to-date, peaked in June. Sales in July dropped 5 percent from June (268 vs. 283). Selling prices were also lower in July than in June. Sales were down for the seventh consecutive month when compared to 2022. The average and median selling prices in July set records in the year-over-year comparison,” stated Alan Jeffries, Association Executive, Southwestern Michigan Association of REALTORS®, Inc.
Jeffries continued, “July house sales were down 17 percent from July 2022 (268 vs. 322). Year-to-date in July, 1546 houses were sold, compared to 1845 houses in July 2022, for a 16 percent decline in sales.”
The inventory of houses for sale fell 8 percent below the level available a year ago (800 vs. 873). With the lower sales volume, the months-supply level increased slightly to 4.6 from 3.9-months supply from a year ago for homebuyers. For comparison, in July 2010, there were 3,821 houses for sale for an 18.1-months supply of houses.
The average selling price in July 2023 increased 6 percent to $345,364 compared to $324,567 in July 2022. Year-to-date, in July 2023, the average selling price rose 5 percent to 347,724 from $331,644 in July 2022.
The median selling price in July 2023 at $260,250 grew 4 percent from $249,750 in July 2022. Year-to-date, the median selling price increased by $7,000 ($250,000 vs. $243,000).
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 in July 2023 stumbled 11 percent compared to July 2022 ($92,649,098 vs. $103,661,719). The year-to-date total dollar volume fell 11 percent ($537,626,542 vs. $607,081,792).
The Freddie Mac mortgage rate in July was 6.81, up from 6.71 in June for a 30-year conventional mortgage. In July 2022, the rate was 5.7; in July 2021, the rate was 3.088.
Nationally:
According to the National Association of Realtors®, existing-home sales receded in July. Among the four major U.S. regions, sales grew in the West but faded in the Northeast, Midwest, and South. All four regions registered year-over-year sales declines.
Total existing-home sales, which were completed transactions that include single-family homes, townhomes, condominiums, and co-ops- waned 2.2% from June to a seasonally adjusted annual rate of 4.07 million in July. Year-over-year, sales slumped 16.6% (down from 4.88 million in July 2022).
“Two factors are driving current sales activity – inventory availability and mortgage rates,” said NAR Chief Economist Lawrence Yun. “Unfortunately, both have been unfavorable to buyers.”
The median existing-home price for all housing types in July was $406,700, an increase of 1.9% from July 2022 ($399,000). Prices rose in the Northeast, Midwest, and South but were unchanged in the West.
In the Midwest, existing-home sales decreased by 3.0% from the prior month to an annual rate of 960,000 in July, dropping 20.0% from the previous year. The median price in the Midwest was $304,600, up 3.9% from July 2022.
“Most homeowners continue to enjoy large wealth gains from recent years with little concern about home price declines,” Yun said. “However, many renters are concerned as they’re facing growing affordability challenges because of high-interest rates.”
“Retreating mortgage rates will bring more buyers and sellers to the market and get Americans moving again,” Yun said.
First-time buyers were responsible for 30% of sales in July, up from 27% in June and 29% in July 2022. NAR’s 2022 Profile of Home Buyers and Sellers – released in November 2022 – found that the annual share of first-time buyers was 26%, the lowest since NAR began tracking the data.
All-cash sales accounted for 26% of transactions in July, identical to June but up from 24% in July 2022.
Individual investors or second-home buyers, who make up many cash sales, purchased 16% of homes in July, down from 18% in June but up from 14% one year ago.
The total housing inventory registered at the end of July was 1.11 million units, up 3.7% from June but down 14.6% from one year ago (1.3 million). Unsold inventory sits at a 3.3-month supply at the current sales pace, up from 3.1 months in June and 3.2 months in July 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.
Southwestern Michigan Association of REALTORS Cleaned-up: Jean Klock, North Beach and Cherry Beach
