In Cass County, the housing market sales were down significantly for all housing types. Selling prices sky-rocketed for all housing types, especially waterfront houses.
When we refer to all or overall housing types, we combine results for waterfront and non-waterfront houses. In May 2022, 57 houses were sold compared to 69 in 2021. Separately, waterfront house sales this past May, sales were down 30 percent (14 vs. 20).compared to May 2021, and non-waterfront houses fell 13 percent from May 2021 (43 vs. 49).
Year-to-date, overall housing types were down 25 percent (194 vs. 260). Waterfront house sales dropped 38 percent (38 vs. 61), and non-waterfront houses sank 22 percent (156 vs. 199).
In May, the overall average selling price rose 42 percent based on the selling prices of waterfront houses compared to May 2021 ($338,996 vs. $237,922). The overall median selling price in May at $207,000 increased 15 percent from $180,000 in May 2021.
The average selling price for waterfront homes sky-rocketed 115 percent to $665,535 from $390,473 in May 2021. The median selling price for waterfront homes climbed 45 percent ($437,500 vs. $383,525).
In May, the average selling price for non-waterfront increased 36 percent to $239,890 from $175,656 in May 2021. The median selling price increased 24 percent to $173,000 from $140,000 in May 2021.
The median price is the price at which 50% of the homes sold were above that price, and 50% were below.
In Cass County, there were three bank-owned or foreclosed homes as a part of all closed transactions in May, which was 5 percent of all transactions. In 2021, there was one bank-owned or foreclosed house as a part of all closed transactions in May. The highest percentage in May previously was 16 percent in 2014.
For comparison, the number of bank-owned or foreclosed homes as a percentage of all transactions in Allegan, Berrien, Cass, and the westerly 2/3 of Van Buren Counties stayed at 1 percent in May the same as in April. In January, the rate was 0 percent, the lowest in 2022. The previous lowest percentage was also 1 percent in May 2021. The highest percentage in May was 34 percent in 2009 and 2011.
Lack of inventory and record-breaking selling prices has kept the SWMI housing market behind in housing sales for the first five months of 2022 compared to 2021. However, selling prices rose 10 percent in May and set records in the year-over-year comparison since 2006. Mortgage rates in May were consistent with rates in April.
In May, the SWMI housing market grew modestly from sales in April (313 vs. 263). The average selling price in May decreased 8 percent from that in April (336,015 vs. 364,201). The median selling price dropped 1 percent in May to 250,000 from 252,650 in April.
Looking at the market year-to-year, the number of houses sold in May 2022 fell 11 percent from May 2021 (313 vs. 352). Year-to-date, in May 2022, 1198 houses were sold compared to 1395 in May 2021, a 14 percent drop from the record high in the market’s year-over-year comparison.
The inventory of houses for sale, already at a very low level, fell 3 percent to 721 from 743 in May 2021. This brought the inventory of houses for sale down to 3.1-months supply of inventory available for buyers, which was up from the 2.5-months supply in May 2021. For comparison, in May 2010, there were 3602 houses for sale and 16.4-months supply of inventory.
Selling prices set new record levels in the year-over-year comparison that dates back to 2006. The average selling price in May 2022 was $336,015 compared to $306,666 in May 2021 for a 10 percent increase. The year-to-date average selling price in May 2022 rose 9 percent over May 2021 ($339,743 vs. $310,262).
The median selling price in May 2022 increased 11 percent to $250,000 from $225,000 in May 2021. Year-to-date, the median selling price climbed 11 percent ($235,000 vs. $212,400). The median selling price and year-to-date median selling price also set new record prices in the month of May in the year-over-year comparison.
The total dollar volume fell 3 percent in May 2022 ($105,172,830 vs. $107,946,451). The year-to-date total dollar volume at the end of May 2022 dipped 9 percent ($395,033,091vs. $432,816,050).
Nationally, in May, the Freddie Mac mortgage rate was 5.10, the same as in April for a 30-year conventional mortgage.
When Selling a Home…
The first thing you should do is pick a REALTOR® to be the coach of your team. You need a coach to do the research that will set up the steps to beat the competition. Your coach will strategize a plan to market your house at the right price and bring in additional players needed to help sell your house quickly. Your job on the team is to get your house in prime condition and deeply cleaned to make your home as appealing as possible. From day one, you should start moving out by getting rid of clutter and all the personal things that say you live there. You can also help by making a list of things about your home and the neighborhood that will be of interest to buyers. Remember selling your house is not a game but a serious financial process requiring a coach and team to work together continuously with no time-outs until you sign the closing papers.
When Buying a Home…
You have three great financial advantages that you don’t have as a renter. First is a steady payment for the life of the mortgage. When you rent, the landlord sets your monthly payment, and you can expect year after year increases. The second advantage is that you will build equity as you pay down your mortgage, and thus increase your financial worth. The third advantage is that every year you can deduct the amount of mortgage interest and property taxes from your income taxes, helping you reduce the amount of taxes that you owe. There are many more advantages, and the best way to learn about them is to call a REALTOR®. A REALTOR® will help you with the process of making the right financial investment in your dream home.
To view properties that are for sale in your local area, go to www.swmar.com and click on “Search”. The Southwestern Michigan Association of REALTORS®, Inc. is a professional trade association for real estate professionals 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.