ST. JOSEPH, MI –"Year-to-date the housing market is almost even with last year. Both the units sold and the average selling prices are tracking almost identical to last year. When you look at the sales in August this year and compare it to last year, more houses were sold this year but at lower prices. Selling prices in 2010 ranged from a low of $105,824 in February to a high of $ 206,733 in July with a run up from January – July and a decline through January 2011. This year the low was $141,912 in June and the high so far was $164,452 in August. The average selling prices have seen more stability this year than in the past two years," stated Gary Walter, EVP, of the Southwestern Michigan Association of REALTORS®, Inc.

Walter said, "The number of houses sold in August (256) bounced back 17 percent over the houses sold in July (218) and 10 percent above houses sold in August 2010 (232). Year-to-date, there was just a 1 percent difference between August this year verses August 2010."

"Looking back, the total dollar volume for August dropped by 5 percent this year but year-to-date it is 1percent higher than last year. The average selling price in August dropped 14 percent to $164,452 from the escalated August 2010 price of $191,970. The median selling price fell 8 percent to $100,950 from $110,000 last year in August. Year-to-date, the average and median selling prices are slightly lower but only by a few dollars in the case of the average selling price," Walter continued.

The median price is the price at which 50% of the homes sold were above that price and 50% were below.

Nationally, existing-home increased in August, even with ongoing tight credit and appraisal problems, along with regional disruptions created by Hurricane Irene, according to the National Association of Realtors®. Monthly gains were seen in all regions.

According to the National Association of Realtors®, total existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, rose 7.7 percent to a seasonally adjusted annual rate of 5.03 million in August from an upwardly revised 4.67 million in July, and are 18.6 percent higher than the 4.24 million unit level in August 2010.

Lawrence Yun, NAR chief economist, said there are some positive market fundamentals. "Some of the improvement in August may result from sales that were delayed in preceding months, but favorable affordability conditions and rising rents are underlying motivations," he said. "Investors were more active in absorbing foreclosed properties. In additional to bargain hunting, some investors are in the market to hedge against higher inflation."

The national median existing-home price for all housing types was $168,300 in August, which is 5.1 percent below August 2010. Distressed homes – foreclosures and short sales typically sold at deep discounts – accounted for 31 percent of sales in August, compared with 29 percent in July and 34 percent in August 2010.

"We had some disruptions from Hurricane Irene in the closing weekend of August, when many sales normally are finalized, along the Eastern seaboard and in New England," Yun said. "As a result, the Northeast saw the smallest sales gain in August, and some general impact is expected in September with widespread flooding from Tropical Storm Lee. Aberrations in housing data are possible over the next couple months as markets recover from disrupted closings and storm damage."

Regionally, existing-home sales in the Midwest rose 3.8 percent in August to a level of 1.09 million and are 26.7 percent above August 2010. The median price in the Midwest was $141,700, down 3.5 percent from a year ago.

All-cash sales accounted for 29 percent of transactions in August, unchanged from July; they were 28 percent in August 2010; investors account for the bulk of cash purchases.

Investors accounted for 22 percent of purchase activity in August, up from 18 percent in July and 21 percent in August 2010. First-time buyers purchased 32 percent of homes in August, unchanged from July; they were 31 percent in August 2010.

"In the Southwest Michigan market we reached the lowest point for the year in August for the number of bank-owned or foreclosed homes as a part of all closed transactions with a drop to 26 percent. This percentage peaked in March at 47 percent. Most months the percentage has held near one-third of all transactions," Walter stated.

Walter continued, "As of August 31st, we had 3,325 houses listed for sale, which is a 12 percent decrease from the number we had in August 2010 (3757). This inventory level based on the last 12 month's sales gives us a 16.3 month supply of homes for sale, which is down from last year when we had a 17.8-month supply."

Nationally, the total housing inventory at the end of August fell 3.0 percent to 3.58 million existing homes available for sale, which represents an 8.5-month supply at the current sales pace, down from a 9.5-month supply in July.

The mortgage rate in Southwest Michigan in August was 4.32 down from 4.76 in July.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 4.27 percent in August, down from 4.55 percent in July; the rate was 4.43 percent in August 2010. Last week, Freddie Mac reported the 30-year fixed rate fell to a record low 4.09 percent.

NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I., said the market is remarkably affordable for people with secure jobs, good credit and long-term plans. "All year, the relationship between home prices, mortgage interest rates and family income has been hovering at historic highs, meaning the best housing affordability conditions in a generation," he said.

"The biggest factors keeping home sales from a healthy recovery are mortgages being denied to creditworthy buyers, and appraised valuations below the negotiated price. Buyers may be able to find more favorable credit terms with community and small regional banks, and Realtors® can often give buyers advice to help them overcome some of the financing obstacles," Phipps said.

The numbers reported for local sales include residential property in Berrien, and the western half of Van Buren and Cass counties.  All three counties are included in numbers and percentages and do not reflect differences in any individual areas.

The Southwestern Michigan Association of REALTORS®, Inc. 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.  The Association is located at 3123 Lake Shore Drive St. Joseph, MI 49085, (269) 983.6375.  They can also be contacted through their web site, www.swmar.com.

The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.