Condominium sales soared in July in the South Haven market, while home sales slowed down significantly from earlier this spring and summer when the local housing industry experienced double and even triple-digits spikes in sales.
According to the latest figures supplied by the Southwestern Michigan Association of Realtors, condo sales in july increased 100 percent over July 2020, while sales of single-family dwelling creased 18 percent for the same time period.
The figures for July indicate housing market sales in the South Haven area are beginning to slow, somewhat. In June, for example, condo sales were up 300 percent from the same period last year, and 200 percent in May. Single-family homes also increased significantly in late spring and early summer, before dipping in July.
Average sale prices for single-family homes are starting to drop as well for the first time in a year.. The average selling price for single-family houses in July decreased 29 percent to $407,481 from $571,736 in July 2020. However, the median price, which some say is a better measurement of market conditions, rose 8 percent to $372,500 in July, compared to $344,250, indicating the inflation that has been experienced over the last year in home sales.
The median price is the price at which 50 percent of the homes sold are above that price, and 50 percent below.
Average sales for condo also dropped in July, falling 22 percent to $338,894 from $433,250 in July 2020. However, unlike the median price for single-family homes in July, the median selling price for condos dropped 29 percent to $307,450 in July from $434,500 during the same period last year.
Another indicator for a possible change in the South Haven market has to do with the number of bank-owned or foreclosed single-family homes. In July, for the first time this year, there was one bank-owned or foreclosed single-family house included in the closed transactions in South Haven 49090. There were no condos included.
But, elsewhere in Southwestern Michigan, the number of bank-owned or foreclosed homes has remained at 1 percent, the same as in June and May.the same this summer remained the same – at 1 percent,
“This was the lowest percentage in 2021,” said Alan Jeffries, executive director for the association. “In January, the rate was 4 percent. The previous lowest percentage in July was 1 percent in 2020. The highest percentage in July was 35 percent in 2009.
Southwestern market, overall
Across all of the southwestern Michigan market covered by the realtors association (Berrien, Cass, Allegan and two-thirds of Van Buren counties), housing market sales dropped 19 percent from a year ago while selling prices increased and set records when compared to previous years. The robust market continued even with a 37 percent drop in inventory of houses for sale.
In July, at 388, the number of houses sold fell 19 percent below the 479 houses sold in July 2020. Year-to-date, the number of houses sold at the end of July was 2132, up 22 percent over July 2020 (2132 vs.1748). This notched a new sales record in the year-over-year sales records since 2006.
Selling prices continued to set new record levels each month in 2021. The average selling price in July 2021 was $351,131 compared to $337,697 in July 2020, for a 4 percent increase. Year-to-date selling prices at the end of July also set records in the year-over-year comparison. The year-to-date average selling price in July 2021 rose 19 percent over July 2020 ($321,074 vs. $268,934).
The median selling price in July 2021 increased 5 percent to $240,500 from $230,000 in July 2020. Year-to-date, the median selling price climbed 13 percent ($225,000 vs. $200,000). The median selling price and year-to-date median selling price also set new record prices in the month of July in the year-over-year comparison.
The inventory of houses for sale plummeted 37 percent from a year ago (889 vs. 1399), bringing the inventory of houses for sale to a 3.1-months supply of inventory available for buyers. This is the highest inventory level this year. At the end of July 2020, the market had a 6.6-months supply of houses for sale. For comparison, in July 2009, there were 3661 houses for sale and an 18.1-months supply of inventory.