By Staff
ST. JOSEPH – "May, as the start of our peak selling season, continued the positive increases from month to month this year. Houses sold and closed in May were up 13 percent over those sold in April. In fact, May this year was only 6 percent behind the houses sold in May 2008. That translates into just 15 fewer houses this year for May. Because of the Homebuyer Tax Credit, first-time homebuyers are starting to get back into the market. The current program requires the buyer to close on their home prior to Dec. 1, 2009, to receive the tax credit," stated Gary Walter, EVP, of the Southwestern Michigan Association of Realtors Inc.
Walter continued, "Other positive indicators include the total dollar volume increase of 50 percent over that in April and homes in the higher price ranges are starting to see sales. The increase in the average price went up 32 percent and median price 47 percent over what we had in April. Our market is prime for buyers to find a good home at the right price.
"We still have negative numbers in our year-to-year comparisons. These numbers reflect a three-year decline from the peak year of 2006 signifying that the market is adjusting to the current conditions."
The number of houses sold and closed in southwest Michigan in May was 6 percent behind May 2008 (222 vs. 237).
The total dollar volume for the month was down 11 percent ($35,959,418 vs. $40,377,044).
The average price declined 5 percent from last year ($161,979 vs. $170,367) and the median 13 percent lower ($116,163 vs. $133,250).
Nationally, existing-home sales showed another gain in May, benefiting from favorable affordability conditions and a first-time buyer tax credit, according to the National Association of Realtors(r).
May's increase was the first back-to-back monthly gain since September 2005.
Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 2.4 percent to a seasonally adjusted annual rate of 4.77 million units in May from a downwardly revised level of 4.66 million units in April, but remained 3.6 percent below the 4.95 million-unit pace in May 2008.
The national median existing-home price for all housing types was $173,200 in May, down 16.8 percent from a year earlier.
Distressed properties, which declined to 33 percent of all sales in May from 45 percent in April, continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes.