The Cass County housing market in August was strong, and overall sales were similar to previous years. Demand for waterfront homes pushed up selling prices while decreasing in the number of homes sold.
The overall number of houses sold varied by just one house when compared to August 2019 (76 vs.75). Sales of waterfront houses decreased 11 percent (24 vs. 27). Non-waterfront home sales propped up overall sales with four additional houses sold when compared to last year (52 vs. 48).
Year-to-date, the overall number of houses sold was up 5 percent (435 vs. 416). Waterfront home sales rose 13 percent (123 vs.109). Non-waterfront home sales increased by 2 percent (312 vs. 307).
The overall average selling price in August 2020 grew 8 percent over August 2019 ($280,345 vs. $ 260,355). The overall median selling price in August at $194,500 slipped $1,500 from the $196,000 median price in August 2019.
The average selling price for waterfront homes soared 32 percent to $501,367 from $378,687 in August 2019. The median selling price for waterfront homes skyrocketed 35 percent ($410,500 vs. $305,000).
In August, the average selling price for non-waterfront homes fell 8 percent to $178,335 from $193,794 in August 2019. The median selling price was up $500 ($153,000 vs. $152,500).
The median price is the price at which 50% of the homes sold were above that price, and 50% were below.
There were no bank-owned or foreclosed houses in Cass County as a part of all closed transactions in August. This was the first month of the year with no foreclosures. The highest percentage in August previously was 18 percent in 2016.
Across all of SWMI since June, the number of bank-owned or foreclosed homes as a percentage of all transactions has held steady at 1 percent for the last three months. This was the lowest percentage reached since 2009. The highest percentage in previously in August was 36 percent in 2009.
Overall the August 2020 SWMI housing market continued the frantic pace started in June. While the summer months are typically referred to as ‘the peak selling season’, the number of sales from June through August has accounted for 57 percent of year-to-date home sales. August sales, selling prices, and total dollar volume escalated well past previous peak year records dating back to 2006.
Homebuyers continued to struggle with the shrinking inventory of houses for sale that dropped 31 percent from August 2019 (1285 vs. 1864). For comparison, in August 2010, there were 3757 houses for sale. The market at the end of August had a 5.9-months supply of houses for sale. The number of listings for sale includes homes for sale across Allegan, Berrien, Cass, and the westerly 2/3 of Van Buren counties.
The number of houses sold increased by15 percent from August 2019 (455 vs. 397). At 455 houses, August 2020 rocketed past the previous record of 418 set in August 2017.
Year-to-date, the number of houses sold was down 8 percent to 2203 from 2383 sold in August 2019.
Average, median, and year-to-date selling prices continued their astonishing climb becoming the new record prices in our year-over-year comparison for August prices.
The average selling price at $324,302 was 35 percent higher than the $239,639 average selling price in August 2019. The year-to-date average selling price increased 18 percent ($280,370 vs. $236,772).
The median selling price soared to $235,000 from $189,900 in August 2019 for a 24 percent increase. Year-to-date, the median selling price rose 15 percent ($206,000 vs. $175,000).
The median price is the price at which 50% of the homes sold were above that price, and 50% were below.
With the record-setting selling prices, the total dollar volume sky-rocketed 55 percent in August ($147,557,780 vs. $95,136,922). The year-to-date total dollar volume increased 10 percent ($617,655,862 vs. $564,229,898).
Locally, the mortgage rate was 3.104, down slightly from 3.108 in July. Last year in August, the rate was 3.692. Nationally, the Freddie Mac mortgage rate in August was 2.91 down from 2.99 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…
So you are ready to put your house on the market. One of the key discussions you should have with your REALTOR® is about the home inspection step. The inspection is usually a contingency of the offer, meaning the buyer can back out based on serious problems discovered. The lender also expects an inspection to make sure it’s making a good investment.
During the home inspection, an inspector will examine the property for flaws. Based on the inspector’s report, the buyer will then give you a list of repair requests.
Your REALTOR® will work with you to negotiate those requests. If you don’t want to be responsible for a repair. Your agent may be able to negotiate a price credit with the buyer instead.
The types of repairs that sellers are typically required to deal with after a home inspection include structural defects, safety issues, and building code violations.
Having this discussion before putting your house on the market will give you an advantage in any negotiations and help you get to the closing faster. And if you’ve been maintaining your home all along, your punch list may be minimal.
When Buying a Home…
In today’s frantic housing market with homebuyers racing house to house, the pace may leave you, and your partner confused, frustrated, and bickering with each other. When you reach this point, it is time to stop and regroup. Sit down with your REALTOR® and talk through your issues.
Your REALTOR® is like a reference librarian and a personal coach in one. They can help you navigate the home buying process, like finding a good mortgage broker or dissecting the details of a home inspection. With their guidance, you will be better able to see the big picture and learn to discuss and prioritize needs versus wants.
Working as a team and accepting good advice will make the home buying process smoother and less stressful.
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.
The Housing Market in South Haven 49090 and SWMI
