Homes sales remain strong in the South Haven area, however, sale prices show signs of falling, according to the latest statistics from the Southwestern Michigan Association of Realtors.
Sales of single-family homes and condos increased significantly in March in the South Haven zip code 49090, compared to a year ago in March.
The number of single-family home sales in March increased 53 percent, with 23 dwellings being sold, up from 15 in March of 2021.
Conversely, the average selling price for single-family houses in March 2022 dropped 17 percent to $529,264 from $637,070 in March 2021, while the median selling price for single-family houses fell 11 percent to $430,000 compared to $485,000 in March 2021. (The median price is price at which 50 percent of the homes sold were above that price, and 50 percent below).
In South Haven’s condo market, four units sold in March of this year compared to three from the same period last year.
Unlike single-family home prices for March, the average selling price for condos jumped 37 percent to $464,011 from $338,333 in March 2021, while the median selling price sky-rocketed 74 percent to $468,522 from $270,000 in March 2021.
SW Michigan market shows signs of slowing
The housing market across Southwest Michigan at the end of the first quarter of 2022 has slowed down from the robust new sales records experienced over the past several years.
In March, the number of houses sold slipped to 244 from 278 sold in March 2021, for a 12 percent decrease. At the end of the first quarter in 2021, 749 houses were sold – the current sales record. But, in the first quarter of this year, the region experienced only 622 home sales for a 17 percent decline.
Selling prices may be starting to adjust, according to the Southwest Michigan Association of Realtor’s report. The average selling price in March was $313,205 compared to $335,662 in March 2021, for a 7 percent decrease. However, sale prices still show a slight increase. The year-to-date average selling price in March 2022 increased 3 percent over March 2021 ($312,013 vs. $303,233).
The median selling price in March also was up, increasing 10 percent to $223,700 from $202,875 in March 2021, while in the first quarter of this year, the median selling price rose 11 percent ($220,000 vs. $198,000 in the same time period in 2021).
Housing inventory continues to dwindle
The inventory of houses for sale in the Southwest Michigan market dropped 20 percent from a year ago (530 vs. 665), bringing the inventory of houses for sale down to 2.2-months of inventory available for buyers and down from 2.5 months of inventory in March 2021. At the end of the first quarter of 2020, the market had a 4.9-months supply of houses for sale. For comparison, in March 2009, there were 2,969 houses for sale.