ST. JOSEPH — June housing sales in Southwest Michigan took a step back from what the region has seen the past two months.
“The exact same number of houses, 367, was sold in June 2019 as in June 2018,” said Alan Jeffries, association executive of the Southwestern Michigan Association of Realtors, Inc. “In the previous two months (April and May), sales of homes were increasing by over 20 percent each month. June sales only increased 2 percent, or six houses, over sales in May.”
Houses sold in June 2019 also had an average selling price of 14 percent higher than those sold in June 2018.
At the end of the second quarter, the number of houses sold year-to-date increased 5 percent in June 2019 over the previous year.
The increased average selling prices in June 2019 raised the total dollar volume 14 percent. Year-to-date, the total dollar volume was up 8 percent.
The monthly and year-to-date total dollar volumes set new records in the year-over-year comparison since 2006.
“The average selling price and the median selling price in June and year-do-date also set new records in the year-over-year comparison,” Jeffries said.
The average selling price in June 2019 increased to $263,124 from $231,009 in June 2018 for a 14 percent increase. Year-to-date, the average selling price increased 3 percent.
The median selling price jumped 8 percent to $186,001 in June 2019 from $172,000 in June 2018. Year-to-date, the median selling price at $169,000 was up 7 percent from June 2018.
The inventory of houses for sale dropped 4 percent below that in June 2018. At 1,721 houses, the market had a 6.7-month supply of homes for sale. In June 2010, the market had a 16.9-month supply.
The number of bank-owned or foreclosed homes as a percentage of all transactions dropped to 4 percent from 6 percent in May. For the year, the percentage has been below double digits with the highest at 9 percent in January.
Locally, the mortgage rate decreased to 4.02 from 4.25 in May. Last year in June, the rate was 4.73.
Nationally, the Freddie Mac mortgage rate in June dropped to 3.73 from 3.99 in May for a 30-year conventional mortgage.
Across the country
According to the National Association of Realtors, existing-home sales weakened in June, as total sales saw a small decline after a previous month of gains.
While two of the four major U.S. regions recorded minor sales jumps, the South and West experienced greater declines last month.
Total existing-home sales dropped 1.7 percent from May to a seasonally adjusted annual rate of 5.27 million in June. Sales as a whole are down 2.2 percent from a year ago (5.39 million in June 2018).
NAR chief economist Lawrence Yun said other factors could be contributing to the low number of sales.
“Either a strong pent-up demand will show in the upcoming months, or there is a lack of confidence that is keeping buyers from this major expenditure,” Yun said. “It’s too soon to know how much of a pullback is related to the reduction in the homeowner tax incentive.”
The median existing-home price for all housing types in June reached an all-time high of $285,700, up 4.3 percent from June 2018. June’s price increase marks the 88th straight month of year-over-year gains.
Regionally, existing-home sales in the Midwest inched up 1.6 percent to an annual rate of 1.25 million, which is a 1.6 percent decline from June 2018.
Nationally, the total housing inventory at the end of June increased to 1.93 million, up from 1.91 million existing-homes available for sale in May, but unchanged from the level of one year ago.
Unsold inventory is at a 4.4-month supply at the current sales pace, up from the 4.3 month supply recorded in both May and in June 2018.
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