The Housing Market in Cass County & SWMI

The 2023 Cass County housing market kicked off the year with a slight increase in the number of houses sold and a significant increase in prices.

When we refer to all or overall housing types, we combine results for waterfront and non-
waterfront houses. So in total, 33 houses were sold in January 2023 compared to 31 in
January 2022. Separately, sales of waterfront houses drove a slight increase of 2 houses
sold (5 vs.3), and non-waterfront houses stayed the same each year at 28.

The overall average selling price in January 2023 increased 34 percent to $296,321 from
$217,658 in January 2022. The overall median selling price in January at $232,777 rose
37 percent from $169,900.

The average selling price for waterfront homes grew 34 percent to $518,800 from
$386,360 in January 2022. The median selling price for waterfront homes soared 252
percent ($705,000 vs. $200,000).

In January, the average selling price for non-waterfront increased 47 percent to $249,727
from $169,500 in January 2022. The median selling price rose 37 percent to $223,888
from $163,500 in January 2023.

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 as a part of all closed
transactions in January 2023. In 2023, there were no houses included. The highest
percentage in January previously was 35 percent in 2015.

For comparison, there were three bank-owned or foreclosed homes as a percentage of all
transactions in Allegan, Berrien, Cass, and the westerly 2/3 of Van Buren Counties in
January. The highest percentage in January was 57 percent in 2009.

The fast and furious pace across the SWMI housing market has run out of steam. In
January 2022, the market started with a record low inventory of houses for sale at 514
houses, and in January 2023, the housing inventory ticked up to 639 houses. So our
housing inventory is still at a very low level for buyers in Allegan, Berrien, Cass, and the
westerly 2/3 of Van Buren counties. So what could we expect the market to do in 2023?
January usually tends to be the least productive month of any given year. January 2021
was the last time sales in January peaked and ended with setting new all-time records for
sales, selling prices, and total dollar volume in the year-over-year comparison that dates
back to 2006. Then January 2022 closed with a 23 percent drop in sales from January
2021 (210 vs. 271). Now January 2023 closed with a 28 percent plunge in sales from
January 2022 (151 vs. 210). From our last peak in January 2021 to this January of 2023,
the market has stepped back 44 percent from its peak.

The average selling price declined to $299,531 from $301,017 in January 2022, which
was less than a 1 percent change.

The January 2023 median selling price tumbled 4 percent ($202,000 vs. $210,000).
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 at $45,229,257 was down 28 percent from the $63,213,613
collected in January 2022.

At the end of January 2023, there were just 639 houses for sale, providing the market
with a 3.3-month inventory for homebuyers. In 2013, the market had a 9.5-months
supply of houses for sale.

Nationally, in January, the Freddie Mac mortgage rate was 6.13, down from 6.42 in
December 2022 for a 30-year conventional mortgage. In January 2022, the mortgage rate
was 3.55.

When Selling a Home…

Take advantage of the low inventory of houses for sale during the winter by putting your
home on the market now. If your home is well-maintained, it will be a stand out in cold,
snowy weather. Draw perspective buyers into your home easier by keeping sidewalks,
driveway, and steps shoveled and salted. Program your thermostat to stay at a nice, warm
temperature throughout the day, so anytime buyers enter your house, it will feel warm
and cozy. Open window shades to keep the house well-lighted, especially on dreary days,
leave a few lights on to add appeal. Make your home look comfortable with simple
touches by keeping a throw over the arm of a sofa and similar ideas, so buyers see
themselves relaxing in the home. Appeal to buyers’ sense of smell with the comforting
smell of freshly baked brownies. To get a jump on the competition, ask your
REALTOR® for specific or unique ideas that will make your home appealing to buyers.

When Buying a Home…

The internet is a wonderful thing. Online, you can find hundreds of calculators to
determine if you are financially ready to be a homebuyer or if you should rent or buy.
And online, you can look at pictures of beautiful houses where you might want to live.
However, using the internet to find your dream home is like looking at adorable puppies
in the window of a pet store. You know you want one, but how do you know which one
will be right for you and your family now and over time?

There are so many steps in the home buying process requiring making life-changing and
financial decisions, where the internet cannot help you weigh your options. Only the
knowledgeable guidance of a REALTOR® can focus your efforts and give you the
specific information you need to make a wise investment in your future.

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.