The local housing market is adjusting and impacting buyers and sellers. For the second consecutive month, there has been little or no growth in the number of houses for sale. Selling prices have set records each month this year with the exceptions of January and April in the year-over-year comparison.
In July, the SWMI housing market saw the number of houses sold fall to 322 from 388 in July 2021, for a 17 percent drop in sales. For the third month in the year’s peak season, sales in July at 322 were slightly lower than in June at 325 and slightly higer than in May at 313.Year-to-date sales were down 13 percent from 2021 (1845 vs. 2132).
Except for the average selling price in July, the year-to-date selling prices and the median selling price set records in the year-over-year comparison, which dates back to 2006.
The average selling price fell 8 percent from that in July 2021 ($324,567 vs. $351,131). The year-to-date average selling price of $331,644 was 3 percent higher than the $321,074 price in July 2021.
The median selling price increased 4 percent to $249,750 from 240,500 in July 2021.
Year-to-date, the median selling price rose 8 percent ($243,000 vs. $225,000).
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 fell 23 percent in July 2022 ($104,510,719 vs. $136,238,880). The year-to-date total dollar volume at the end of July 2022 fell 11 percent ($611,884,673 vs. $684,530,317).
The inventory of houses for sale has slowed the free-fall of available listings to a 2 percent decrease from 2021 (873 vs. 889). The inventory of houses for sale increased to a 3.9-months supply of inventory available for buyers, up from the 3.6-months supply in June 2021. For comparison, in July 2010, there were 3821 houses for sale and an 18.1-months supply of inventory.
The number of bank-owned or foreclosed homes as a percentage of all transactions stayed at 1 percent in July, the same as in June, May, and April. In January, the rate was 0 percent, the lowest in 2022. The previous lowest percentage in July was 0 percent in 2021. The highest percentage in July was 35 percent in 2009.
Nationally, the Freddie Mac mortgage rate was 5.30 in July, down from 5.7 in June 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…
Home not selling? There is one factor you can control: your home price. These five signs may be telling you it’s time to lower your price.
1. You’re drawing a few lookers.
You get the most interest in your home right after you put it on the market because buyers want to catch a great new home before anybody else takes it. If your REALTOR® reports there have been fewer buyers calling about and asking to tour your home than there have been for other homes in your area, that may be a sign buyers think it’s overpriced and are waiting for the price to fall before viewing it.
2. You’re drawing lots of lookers but have no offers.
If you’ve had 30 sets of potential buyers come through your home and not a single one has made an offer, something is off. What are other REALTORS® telling your REALTOR® about your home? An overly high price may be discouraging buyers from making an offer.
3. Your home’s been on the market longer than similar homes. Ask your REALTOR® about the average number of days it takes to sell a home in your market. If the answer is 30 and you’re pushing 45, your price may be affecting buyer interest. When a home sits on the market, buyers can begin to wonder if there’s something wrong with it, which can delay a sale even further. At least consider lowering your asking price.
4. You have a deadline.
If you’ve got to sell soon because of a job transfer or you’ve already purchased another home, it may be necessary to generate buyer interest by dropping your price, so your home is a little lower priced than comparable homes in your area. Remember: It’s not how much money you need that determines the sale price of your home. It’s how much money a buyer is willing to spend.
5. The competition has changed.
If weeks go by with no offers, continue to check out the competition. What have comparable homes sold for, and what’s still on the market? What new listings have been added since you listed your home for sale? If comparable home sales or new listings show your price is too steep, consider a price reduction.
When Buying a Home…
If you’re considering purchasing a home, you’ve likely already considered how much you have available for a down payment, what an ideal mortgage payment would be, and how much home you can actually afford based on your monthly income. But what about your lifestyle? Did you plan wiggle room? Will you have extra money to enjoy life? What features of a house may not fit your personality or time restraints?
Most of us like to travel. Have you thought about where you would like to go? Will a big trip fit your budget? It’s important to reflect on your priorities. How much money would you need on an annual basis to make your travel goals possible?
Do you love gardening, being outside, and all things landscaping? If you purchase a home with a lawn and don’t enjoy the upkeep, you could be looking at an extra $100 or more a month for professional landscape maintenance. Are you willing to skip the lawn in favor of hardscaping to reduce costs?
Factor hobbies and services into your monthly budget to see if the numbers still work.
How dreamy would it be to buy a home with a pool? Before the dream becomes a reality, add up the costs of pool maintenance and servicing, energy, and insurance (along with liability if you have small children), and you may be better off heading to the neighborhood swimming hole.
If you’re buying a home and plan to start a family in the next few years, don’t just consider the amount of mortgage you can afford under your current expenses. Factor in daycare costs and determine what your cash flow will look. You may have to adjust the amount of home you’re looking to purchase.
If you enjoy dining out, going to concerts and sporting events, and seeing movies, plan your budget that meets maintaining the lifestyle you enjoy.
Don’t forget retirement planning. Put in your budget savings to assure a comfortable retirement, and don’t count on the house to fund your retirement.
Although home ownership can help build long-term wealth, it’s important to also maintain retirement savings for future security.
To view properties 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.