In June, the Cass County housing market in June saw a small slump, 7 percent, in overall sales of all housing types due to a 32 percent decrease in sales of waterfront houses.
The overall number of houses sold in June 2021 was 62 compared to 67 in June 2020. Sales of waterfront homes decreased by eight houses (17 vs. 25). Non-waterfront house sales increased by 7 percent (45 vs. 42).
The overall average selling price in June 2021 decreased 7 percent to $271,298 from $291,204 in June 2020. The overall median selling price in June at $202,450 slipped 3 percent from $209,000.
The average selling price for waterfront homes increased 5 percent to $519,765 from $495,560 in June 2020. The median selling price for waterfront homes rose 12 percent ($464,000 vs. $416,000).
In June, the average selling price for non-waterfront houses grew 5 percent to $177,433 from $169,563 in June 2020. The median selling price jumped 10 percent to $171,000 from $155,950 in June 2020.
The median price is the price at which 50% of the homes sold were above that price, and 50% were below.
There was one house included in the bank-owned or foreclosed as a part of all closed transactions in June for 2 percent of all transactions. In June 2020, there were five houses (5 percent). The highest percentage in June 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 dropped to 1 percent in May and remained at 1 percent in June. This was the lowest percentage in 2021. In January, the rate was 4 percent. The previous lowest percentage was 1 percent in June 2020. The highest percentage in June was 17 percent in 2013.
Across all of the SWMI, the housing market race is still on, and the only sign of a bump in the road is the 49 percent drop in the number of houses for sale at the end of June. The record-setting for selling prices and total dollar volume continued, with June 2021 becoming the highest in the year-over-year comparison that dates back to 2006.
In June, at 349, the number of houses soared past the 318 houses sold in June 2020 by 10 percent. However, the record number of houses sold in June in the year-over-year reached 388 in June 2017 and 2006, both peak years. At the end of June 1744, houses have sold, which was a new sales record. In June 2020, 1269 houses were sold, which was 37 percent less than this year.
With the race on, selling prices continue to set new record levels each month in 2021. The average selling price in June 2021 was $330,887 compared to $ 300,418 in June 2020. for a 10 percent increase. Year-to-date selling prices at the end of June also set records in the year-over-year comparison. The year-to-date average selling price in June 2021 rose 29 percent over June 2020 ($314,387 vs. $242,978).
The median selling price in June 2021 increased 30 percent to $240,000 from $234,250 in June 2020. Year-to-date, the median selling price climbed 70 percent ($319,900 vs. $187,900). 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 inventory of houses for sale plummeted 49 percent from a year ago (812 vs. 1500), bringing the inventory of houses for sale to a 2.8-months supply of inventory available for buyers. This is the first time the available inventory has risen above 2.5-months supply this year. At the end of June 2020, the market had a 6.7-months supply of houses for sale. For comparison, in May 2009, there were 3679 houses for sale and 16.9-months supply of inventory.
The total dollar volume rose 21 percent in June 2021 ($115,479,891vs. $95,532,984). Due to the number of sales at higher prices, the monthly and year-to-date total dollar volume set new records for the dollar volume at the end of June ($548,290,941vs.
$308,340,086). The year-to-date total dollar volume rose 73 percent.
Overall in SWMI, the mortgage rate was 3.083, down slightly from 3.088 in May. Last year in June, the rate at 3.253. Nationally, the Freddie Mac mortgage rate in June was 2.98, up slightly from 2.95 in May for a 30-year conventional mortgage.
This data reflects home sales across Allegan, Berrien, Cass, and the westerly 2/3 of Van Buren counties and 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…
So you are selling a home in a competitive market with low inventory and high demand. You know you’re likely to have more interested buyers, better offers, and a quicker trip to contract than you’d have otherwise. But along with that good news comes the need to manage your expectations by understanding what determines house prices and home sales. Factors include the right real estate agent, local market conditions, buyer preferences, seasonality, and mortgage rates versus inventory.
House prices come down to the micro real estate market. What’s going on in the U.S. as a whole is different than what’s going on in Lansing, Michigan. And what is going on in your neighborhood is different than what’s going in the next neighborhood. There are many factors that can affect the selling price, including the home condition, buyer preferences, and location on a busy street or alley, for instance, may deter some buyers.
Sellers should approach working with a REALTOR® as though they’re forming a team. You’ll be creating a plan together on how to maximize home pricing. No one has a crystal ball. Ideally, the sellers should list at a price that gets attention and triggers a lot of interest based on the detailed research the knowledgeable listing REALTOR® suggests.
When Buying a Home…
Start by looking at three things – how much cash do you have, \ your credit score, and your debt ratio. Lenders like to see a 20 percent down payment but there are many low payment loan programs available such as FHA loans, which may be only require as little as 3.5 percent down payment. The higher your credit score, the better your chances to get a loan to get the loan at a lower interest rate. If your credit score is low, request a full report and look for errors that might be affecting your score.
Lenders will also want to compare your debt-to-income ratio. So when you add up all your bills and divide by your monthly income, what percentage number do you get. Lenders typically want this number to be less than 43 percent, according to the Consumer Financial Protection Bureau.
Contacting a REALTOR® who knows the local lending market, in addition to the housing market, will help you to easily navigate all the steps to buying 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.