In August, the Cass County housing market sales dropped 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 August 2021 was 62 compared to 67 in August 2020. Sales of waterfront homes decreased by 8 houses (17 vs. 25). Non-waterfront house sales increased by 7 percent (45 vs. 42).
In August, the overall average selling price decreased 7 percent to $271,298 from $291,204 in August 2020. The overall median selling price at $226,501 decreased 3 percent from $209,000 in August 2020.
The average selling price for waterfront homes rose 5 percent to $519,765 from $495,560 in August 2020. The median selling price for waterfront homes jumped 12 percent ($464,000 vs. $416,000).
In August, the average selling price for non-waterfront houses increased 5 percent to $177,433 from $169,563. The median selling price jumped 10 percent to $171,000 from $155,950.
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 August for 2 percent of all transactions. The same percentage occurred in July. The highest percentage in August previously was 16 percent in 2016.
For comparison, there were no bank-owned or foreclosed homes as a percentage of all transactions in August. This was the best percentage in 2021 and for the last five years. In January, the rate was 4 percent. The previous lowest percentage in August was 1 percent in 2020. The highest percentage in August was 36 percent in 2009.
Across all of the SWMI, for the second month sales dropped 19 to 20 percent behind from a year ago. Selling price made moderate increases year-to-date. Selling prices in August did not set any records except for the year-to-date selling prices when compared to previous years. The market manages to continue to do well even with a 26 percent drop in inventory of houses for sale.
In August, at 363, the number of houses sold fell 20 percent below the 455 houses sold in August 2020. Year-to-date, the number of houses sold at the end of August was 2495, up 13 percent over August 2020 (2495 vs.2203). This scored a new sales record in the year-over-year sales records since 2006. For the last six months, the year-to-date sales have set records over previous years..
Selling prices declined slightly for the first time in 2021, and August selling prices did not surpass prices in August 2020. The average selling price in August 2021 was $307,860 compared to $324,302 in August 2020, for a 5 percent decrease. In July 2021, the average selling price was $351,131, or 13 percent higher than the selling price in August. Year-to-date selling prices at the end of August did set records in the year-over-year comparison. The year-to-date average selling price in August 2021 rose 14 percent over August 2020 ($319,151 vs. $280,370).
The median selling price in August 2021 slipped 2 percent to $230,000 from $235,000 in August 2020. Year-to-date, the median selling price climbed 9 percent ($225,000 vs. $206,000). The year-to-date median selling price also set a new record price in the month of August in the year-over-year comparison.
The total dollar volume plummeted 24 percent in August 2021 ($111,753,405, vs.147,557,780). With the number of sales at higher prices, the year-to-date total dollar volume set a new record for the dollar volume at the end of August ($796,283,722 vs.$ 617,655,862). The year-to-date total dollar volume rose 29 percent.
The inventory of houses for sale fell 26 percent from a year ago (952 vs. 1285), bringing the inventory of houses for sale to a 3.4-months supply of inventory available for buyers. This is the highest inventory level this year. At the end of August 2020, the market had a 5.9-months supply of houses for sale. For comparison, in August 2009, there were 3821 houses for sale and a 17.8-months supply of inventory.
Nationally, the Freddie Mac mortgage rate in August was 2.7, down slightly from 2.88 in July 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…
Working with a REALTOR® can help you avoid common mistakes when closing on a home.
Take the preclosing stage of the home-buying process. You may keep thinking about the money at stake, while forms, disclosures, and reports fly at you. It’s enough to overwhelm anyone.
You’re probably not in the habit of reading thousands of words at a single sitting. That’s understandable, but you must read every word in documents and emails your lender, agent, appraiser, and title officer put in front of you. Don’t think you can wait until closing to read the many pages you will need to sign or think the closing officer will explain all the details to you.
Keep relevant participants in the know about every bit of information especially a job change or a side deal with the buyer, or you could delay your closing.
Make sure your driver’s license is up-to-date. If not the notary will not be able to continue the closing.
Other common mistakes are forgetting your checkbook and not confirming the time and location of the closing. Remember your REALTOR® is your advisor, and is available to help you understand this step in the home-owner process.
When Buying a Home…
You can make a successful offer on a home even in a competitive market — with the right information and help. When you’re house hunting, the pressure of competition can move you from “ I like that, but it’s too pricey” to “I have to have that!” You think, so what if paying for this house will put me way over budget? I can cut back somewhere else, right? But that kind of thinking can get you into trouble.
Prior to searching for a new home, sit down and develop a realistic budget that you can really live on. Share this budget with your REALTOR®, so the whole house hunting team knows your limits.
Whether you’re in the middle of a home bidding war or facing down a list of must-haves, don’t lose sight of your budget and the risks. That way, you can own a house without home buyer’s remorse. And you’ll have money left to enjoy things like new furniture, entertainment, and just plain having fun.
One reason home buyers may be tempted to go over budget is they’ve been influenced by the beautiful homes on TV, according to a NAR report on home staging. “The shows can create unrealistic expectations for the home buying process and how homes should look. Buyers can view features that used to be luxuries as necessities.
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.
July 2021 SWMI Housing Market – Sales Decline While Selling Prices Set Records
