The SWMI housing market sales dropped 23 percent in October. This makes four consecutive months that sales have fallen more than 19 percent below sales from last year. Selling prices in October were down from October 2020 record selling prices. However, the year-to-date selling prices did set records. The overall market was sustainable even with the inventory of houses for sale dropping over 20 percent per month since June.
In October, 367 houses were sold, down from the 398 sold in September and down 23 percent compared to 477 houses sold in October 2020.
Year-to-date, the number of houses sold at the end of October was 3259, up 2 percent over October 2020 (3259 vs. 3198). At 3259 houses, October set a new sales record in the year-over-year sales records since 2006. For the last ten months, the year-to-date sales have set records over previous years.
The average selling price in October dropped 6 percent from the record-setting average selling price in October 2020 ($337,096 vs. $358,144). The year-to-date average selling price in October 2021 set a new record rising 8 percent over October 2020 ($321,711, vs. $297,786).
The median selling price in October 2021 slipped 4 percent to $235,000 from $245,660 in October 2020. Year-to-date, the median selling price increased 5 percent ($225,000 vs. $215,000). The year-to-date median selling price set a new record price in the month of October in the year-over-year comparison.
The median price is the price at which 50% of the homes sold were above that price, and 50% were below.
The inventory of houses for sale fell 21 percent from a year ago (818 vs. 1034), bringing the inventory of houses for sale to a 3.2-months supply of inventory available for buyers. For comparison, in October 2010, there were 3385 houses for sale and a 16.6-months supply of inventory. Throughout 2021, the inventory level at the end of each month has fallen 20 percent to 48 percent.
The total dollar volume plummeted 28 percent in October 2021 ($123,714,421 vs. $170,834,881). 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 October ($1,048,456,410 vs. $952,320,913). The year-to-date total dollar volume rose 10 percent.
There were four bank-owned or foreclosed homes as part of all transactions in October, which was just 1 percent. In January, the rate was 4 percent, the highest rate for the year. The previous lowest percentage in October was 2 percent in 2020 and 2019. The highest percentage in October was 34 percent in 2009.
Nationally, the Freddie Mac mortgage rate in October was 3.14, up slightly from 3.01 in September 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…
Once the buyer has made, and you’ve accepted an offer, your home will get the once-over from the buyer’s home inspector. 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.
Don’t want to be responsible for a repair? Your agent may be able to negotiate a price credit with the buyer instead. Your REALTOR® will help advise you about repairs you need to make before the inspection. In fact, he/she may have made those recommendations to you even before you put the home on the market. And if you’ve been maintaining your home all along, your punch list may be minimal.
In addition, back when you put the home on the market, you were required to disclose to buyers the home’s “material defects” — anything you know about the home that can either have a significant impact on the market value of the property or impair the safety of the house for occupants. Material defects tend to be big underlying problems, like foundation cracks, roof leaks, basement flooding, or termite infestation.
When Buying a Home…
At a time when new houses come on the market and seem to sell in a matter of hours, you may be wondering if you will ever find your dream home. Or wondering if you will be able to afford any home, let alone your dream home. Sit down with your REALTOR® and reevaluate what is important to you.
What changes are you willing to make? Is there a second choice in location or school district that you can accept?. Instead of the perfect dream house that is move-in ready, would you consider a house with good bones that you could renovate over time? Do you have the time to repaint or replace the landscaping?
Your REALTOR® can consider your priority changes and make suggestions about houses that did not make your top list before but have the right potential to fit your updated priorities and criteria. There may even be the possibility to purchase a home under your budget, giving you more money for renovations. The real bonus could be not finding your dream home but making your dream 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.