SWMI & National Housing Market – September Housing Market Sales Weak, Prices Set Records
“This September, the SWMI housing sales level continued to stay below the sales level in September for the last ten years. September was the ninth consecutive month for sales to fall behind in the same month of 2022. Selling prices set records for reaching the highest price in September, comparing back to beyond the peak years to 2006,” stated Alan Jeffries, Association Executive, Southwestern Michigan Association of REALTORS®, Inc.
Jeffries continued, “The extremely low inventory of houses for sale fell 7 percent below the level available a year ago (830 vs. 895). With the lower sales volume, the months-supply level increased slightly to 5.0 from 4.1-months supply from a year ago for homebuyers. For comparison, in September 2010, there were 3574 houses for sale for a 17.3-months supply of houses.”
September house sales dropped 18 percent from August 2023 (259 vs. 315). This September, house sales crashed 24 percent from September 2022 (259 vs. 339). Year-to-date, 2119 houses sold in September, compared to 2524 houses in September 2022, for a 16 percent decline in sales.
The average selling price in September 2023 increased 7 percent to $365,279 compared to $340,600 in September 2022. Year-to-date, in September 2023, the average selling price rose 6 percent to $357,233 from $336,150 in September 2022.
The median selling price in September 2023 at $282,950 rose 12 percent from $252,000 in September 2022. The median selling price, year-to-date, increased by nearly $15,000 ($259,450 vs. $245,000).
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 September 2023 dropped 18 percent compared to September 2022 ($94,454,730 vs. $115,463,412). The year-to-date total dollar volume fell 11 percent ($756,720,984 vs. $848,468,979).
The number of bank-owned or foreclosed homes as a percentage of all transactions stayed at 3 percent, the same as in August. It was at 0 percent in September 2022. The highest percentage in September previously was 37 percent in 2009.
Nationally:
According to the National Association of Realtors®, existing-home sales faded in SeptemberAmong the four major U.S. regions, sales rose in the Northeast but receded in the Midwest, South, and West. 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 2.0% from August to a seasonally adjusted annual rate of 3.96 million in September. Year-over-year, sales dropped 15.4% (down from 4.68 million in September 2022).
“As has been the case throughout this year, limited inventory and low housing affordability continue to hamper home sales,” said NAR Chief Economist Lawrence Yun. “The Federal Reserve simply cannot keep raising interest rates in light of softening inflation and weakening job gains.”
The median existing-home price for all housing in September was $394,300, an increase of 2.8% from September 2022 ($383,500). All four U.S. regions posted price increases.
In the Midwest, existing-home sales declined by 4.1% from the previous month to an annual rate of 930,000 in September, down 18.4% from one year ago. The median price in the Midwest was $293,300, up 4.7% from September 2022.
“For the third straight month, home prices are up from a year ago, confirming the pressing need for more housing supply,” Yun said.
First-time buyers were responsible for 27% of sales in September, down from 29% in August 2023 and September 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 29% of transactions in September, up from 27% in August and 22% in September 2022.
Individual investors or second-home buyers, who make up many cash sales, purchased 18% of homes in September, up from 16% in August and 15% one year ago.
Total housing inventory registered at the end of September was 1.13 million units, up 2.7% from August but down 8.1% from one year ago (1.23 million). Unsold inventory sits at a 3.4-month supply at the current sales pace, up from 3.3 months in August and 3.2 months in September 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 – August Housing Market Sales Highest for Year
