House market stabilizesPublished 4:43pm Sunday, August 26, 2012
The spike in southwest Michigan home-selling prices in June returned to a more sustainable range. The average selling price dropped from $221,118 in June to $152,943 in July and the July average selling price slipped 2 percent below the average selling price in July 2011 of $155,796.
However, the spike in June kept the year-to-date average selling price up 16 percent at $179,049. The median selling price of $118,000 in July was up 16 percent over a year ago. The year-to-date median selling price was up 4 percent at $100,000 compared to $96,000 last year in July.
The median price is the price at which 50 percent of the homes sold were above that price and 50 percent were below.
“For the most part this year, the housing market has followed three good trends,” said Gary Walter, executive vice president of the Southwestern Michigan Association of Realtors Inc. (SMARI). “First, for seven months we have sold more houses each month than the same month last year.
“Second, the inventory of houses available has fallen from previous years to a 12-14-month supply,” Walters said. “Third, the mortgage rate has continued to drop this year and is down about 1 percent from last year.”
Walter continued, “The housing market in July returned to the pattern of double-digit increases in houses sold over the previous year that we had experienced for most of 2012. June was the only month to not follow the pattern with just a 2 percent increase over June 2011. In July, the number of houses sold and closed at 266 was up 22 percent over July 2011. Year-to-date, we are ahead of last year by 24 percent with 1615 houses sold.”
The total dollar volume in July increased 20 percent above last year but was 30 percent less than in June. Year-to-date the total dollar volume at $289.2 million is 43 percent ahead of last year. The year-to-date total dollar volume is the highest amount in the last four years.
The SMARI area, year-to-date, holds 10th place in sales of houses in Michigan out of 41 local associations. Oakland County continues to hold first place. Southwest Michigan has the seventh highest year-to-date average selling price.
Nationally, existing-home sales rose in July even with constraints of affordable inventory, and the national median price is showing five consecutive months of year-over-year increases, according to the National Association of Realtors.
SMARI is a professional trade association for real estate licensees and ancillary service providers for the real estate industry in Van Buren, Berrien and Cass counties.
Tags: housing market