In Cass County, the housing market sales, after five months of lagging behind sales in 2022, gained 22 percent. Selling prices overall dropped 7-8 percent, except for waterfront houses that sky-rocketed as high as 92 percent.
When we refer to all or overall housing types, we combine results for waterfront and non-waterfront houses. In total, 55 houses were sold in October 2023 compared to 45 in October 2022, for a 22 percent increase. Separately, waterfront house sales grew by one house (8 vs.7), and non-waterfront house sales rose 24 percent (47 vs. 38).
Year-to-date, sales of all housing types declined 9 percent (454 vs. 500). Waterfront house sales slipped 21 percent (102 vs. 129), and non-waterfront house sales fell 5 percent (352 vs. 371).
The overall average selling price in October dropped 7 percent based on the lower selling prices of non-waterfront houses compared to October 2022 ($294,762 vs. $317,982). The overall median selling price in October at $205,000 decreased 8 percent from $224,000 in October 2022.
The average selling price for waterfront homes sky-rocketed 92 percent to $725,713 from $377,642 in October 2022. The median selling price for waterfront homes climbed 82 percent ($710,000 vs. $390,000).
In October, the average selling price for non-waterfront fell 28 percent to $221,409 from $306,992 in October 2022. The median selling price dropped 5 percent to $185,000 from $194,500 in October 2022.
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 was one bank-owned or foreclosed home as a part of all closed transactions in October. This reduced the percentage of foreclosed homes to 2 percent from 5 percent in September. The highest percentage in October previously was 22 percent in 2014.
For comparison, the number of bank-owned or foreclosed homes as a percentage of all transactions decreased to 1 percent from 3 percent in September. It was at 3 percent in October 2022. The highest percentage in October previously was 34 percent in 2009.
Across SWMI, housing sales continued to decline and stayed below the sales level in October for the last ten years. October was the tenth consecutive month for sales to fall behind in the same month of 2022. Selling prices continued to set records, reaching the highest price in October, comparing back to beyond the peak years to 2006. However, selling prices increased by less than 6 percent.
The decreasing inventory of houses available for sale is the main contributor, with an 8 percent decrease in the level available from a year ago (802 vs. 873). With the lower sales volume, the months-supply level decreased slightly to 4.9 from 5.0-months supply in September for homebuyers. For comparison, in October 2010, there were 3385 houses for sale for a 16.6-months supply of houses.
The market is also restrained by the Freddie Mac mortgage rate for a 30-year conventional mortgage, increasing to 7.79 from 7.31 in September. In October 2022, the rate was 7.08, and in 2021, the rate was 3.14.
October house sales dropped 7 percent from October 2022 (273 vs. 294). Year-to-date in October, there were 2393 houses sold, compared to 2818 houses in October 2022, for a 15 percent decline in sales.
The average selling price in October 2023 increased 1 percent to $392,273 compared to $386,894 in October 2022. Year-to-date, in October 2023, the average selling price rose 6 percent to $361,102 from $341,454 in October 2022.
The median selling price in October 2023 at $274,500 rose 6 percent from $260,000 in October 2022. Year-to-date, the median selling price increased 4 percent ($260,000 vs. $249,250).
The total dollar volume in October 2023 dropped 6 percent compared to October 2022 ($106,950,822 vs. $113,747,087). The year-to-date total dollar volume fell 10 percent ($864,405,599 vs. $962,220,066).
When Selling a Home…
Before putting your house on the market, take a hard look at your kitchen. For many families, the kitchen is the hub of the house. So, potential buyers will envision themselves spending a lot of time in the kitchen when they walk through your home.
Does your kitchen look like it was done in the 90s or decorated in a faddish color like turquoise? You don’t need to remodel your kitchen… just neutralize it with timeless colors such as white, beige, or gray. You can add color to the room with rugs, dinnerware, and other colorful accessories.
Buyers will look beyond these items and think about how their things will look in the kitchen and appreciate the ease of moving into this important space with little decorative work on their part. Your REALTOR® works with buyers every day. He or she should be able to give insight into how buyers will react to your kitchen. The goal is to make your home as marketable and desirable as possible.
When Buying 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.
SWMI & National Housing Market – September Housing Market Sales Weak, Prices Set Records
