The housing market in Cass County in 2022 slowed down for all housing types; however, selling prices continued to increase.
Year-to-date sales of all housing, including waterfront and non-waterfront locations in Cass County, decreased 16 percent over sales at the end of 2021 (578 vs. 686). Waterfront house sales declined 17 percent (142 vs. 170), and non-waterfront house sales slipped 16 percent (436 vs. 516).
The overall average selling price in 2022 saw a 31 percent increase from 2021 ($332,430 vs. $253,181). The overall median selling price at $225,000 increased 18 percent from the $190,000 median price at the end of 2021.
The year-to-date average selling price for waterfront homes rose 32 percent to $634,062 from $478,662 in 2021. The median selling price for waterfront homes grew 28 percent ($473,675 vs. $370,000).
For non-waterfront homes, the year-to-date average selling price increased 31 percent to $234,191 from $178,895 in 2021. The median selling price at $186,250 was 15 percent higher than the $162,000 at the end of 2021.
The median price is the price at which 50% of the homes sold were above that price and 50% were below.
Only one bank-owned or foreclosed house in Cass County was a part of all closed transactions in December. The highest percentage in December previously was 27 percent in 2014. There were ten houses total for all of 2022.
Across all of SWMI, there were two bank-owned or foreclosed homes as part of all transactions in December, which was 1 percent. For six months, the rate was 1 percent in 2022. The highest rate was 3 percent in February. The previous lowest percentage was 0 percent for three months, and the percentage was 2 percent for two months.
From 2016 until 2020, the housing market in SWMI experienced a rush of peak sales and selling prices. At the end of 2020, the market had celebrated four straight years of peak prices and sales. In 2021, the COVID shutdown ended in April, and homebuyers swept up the available inventory. At the start of 2022, the inventory had shrunk to a historically low level of 1.9-months supply, and the year ended with 3.3-months supply.
Mortgage rates rose from 3.55 in January and, at the end of the year, were 6.42. The number of houses sold each month in 2022 was lower than the same month in 2021. Average and median selling prices each month in 2022 were higher than the same month in 2021, except for July and December.
In December 2022, the number of houses sold was down 44 percent compared to December 2021 (167 vs. 296). At 167, the number of sales dropped back to the level before the peak years. Year-to-date sales in 2022 fell 16 percent from the record-setting number of sales in 2021 (3262 vs. 3889).
The average selling price in December 2022 at $299,574 was 21 percent lower than the average selling price of $377,156 in December 2021, the previous highest selling price in the year-over-year comparison.
The year-to-date average selling price of $338,495 was up 4 percent over 2021 ($325,972) and set a new record in the year-over-year comparison.
The median selling price for December 2022 was $219,000, which tumbled 11 percent below the $245,000 median selling price for December 2021.
The year-to-date median selling price of $245,000 was an 8 percent increase over $226,100 in 2021 and set a new record in the year-over-year comparison.
Additional market highlights include the number of houses sold each year has stayed above 3000 for the last ten years. Since 2015, the average selling price in SWMI has increased 61 percent, down from 63 percent increase in 2021.
The yearly total dollar volume in 2022 decreased 13 percent ($1,104,172,661 vs. $ 1,267,707,045).
The dark cloud over the market has been the dwindling inventory of houses for sale. At the end of 2022, the market showed signs of growth with 662 houses for sale across Allegan, Berrien, Cass, and the westerly 2/3 of Van Buren Counties, which was up 29 percent from that at the end of 2021 when the number of houses for sale was 514. The December 2021 level (514) was the lowest in the year-over-year comparison.
At 662 houses, the market ended the year with just a 3.3-months supply of homes for sale compared to 2.0 in December 2021 and 3.7 in November. In 2010, there were 3160 houses on the market or a 15.8-months supply. The number of listings for sale includes homes across Allegan, Berrien, Cass, and the westerly 2/3 of Van Buren counties.
Nationally in December, the Freddie Mac mortgage rate was 6.42, up from 3.11 in December 2021 and down from 6.49 in November 2022 for a 30-year conventional mortgage.
2023 may be the year of change, “It looks like the market in 2023 will continue correcting itself as to prices. Real estate sales may continue to dip through 2023 depending on interest rates and inventory. The Real estate market is going through the denial stage right now in regard to interest rates but should adjust to the acceptance stage in the first half of 2023. Low inventory will continue to be an issue until new housing units can be built or property owners decide to start selling,” stated Alan Jeffries, Association Executive, Southwestern Michigan Association of REALTORS®, Inc.
The numbers reported for local sales include residential property in Allegan, Berrien, Cass, and the westerly 2/3 of Van Buren Counties. They should not be used to determine the market value of any individual property. If you want to know the market value of your property, please contact your local REALTOR®.
When Selling a Home…
Putting your house on the market is an exciting and emotional time. Your REALTOR® becomes your trusted advisor and guardian to protect your interests from the moment you sign the listing and the ‘For Sale’ sign goes up in the yard until you close and transfer ownership of your home.
Your REALTOR® will develop a strategy for marketing your home to potential buyers by using the Multiple Listing System to reach over 5,000 Realtors in 22 counties and using other resources to reach as many potential buyers as possible.
Your REALTOR® will stand by you to negotiate offers and then become a business manager overseeing all the important steps needed to get to a successful, timely closing. Your home is a big investment. Trust a REALTOR® to always act in your best interest.
When Buying a Home…
Owning a home has many advantages, and reducing the amount of tax dollars that you pay each year is one of the best. If you are renting, this is the time of year to look at what tax advantages you might have had if you were a homeowner. Your first tax deduction starts when you sign for your mortgage. The next time you file your taxes, you can deduct the mortgage interest you paid at closing as well as some of the closing costs, such as points and loan origination fees, as itemized deductions.
Second, you can deduct property taxes paid at closing and for every year thereafter. Then every year, you can deduct the amount of interest you pay on your mortgage. If you work from home and have a home office, you may be eligible to deduct the prorated costs of your mortgage, insurance, and other expenses related to that space. Factoring the tax savings may help you reduce your overall housing cost. Contact a REALTOR® to learn more about the tax advantage and other advantages you can reap by owning a 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.