Since August, the local housing market year-to-date has kept pace with and just slightly below what the market was doing a year ago. With the exception of the average selling price fluctuating, the market was also on pace with where it was in 2009. Last year at the end of October, three more houses were sold, the average selling price was 2 percent higher and the median selling price was 4 percent higher than this year. While we are seeing typical monthly changes, the year-to-date numbers are suggesting that the market is stabilizing and hopefully providing more sustainable conditions. The mortgage rates may have been a factor in that rates reported in October have dropped from 5.22 in 2009 to 4.47 in 2010 to 4.23 this year. 

Last year in October, twenty more homes were sold than in October this year which results in a 9 percent decrease. The average and median selling prices dropped 13 percent.The average selling price in October was $148,297 vs. $170,512 last year. The median selling price fell to $109,900 vs. $127,000 a year ago.

With fewer houses selling and at lower selling prices the total dollar volume fell by 21 percent. 

Year-to-date, the average selling price was $157,327 vs. $160,500, a 2 percent decline, and the median selling was $99,7000 vs. $104,000, a 4 percent decline from last year.

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

The number of bank-owned or foreclosed homes as a part of all closed transactions has stabilized over the last three months to a yearly low of 26 percent in August and October and 29 percent in September. The number of bank-owned or foreclosed transactions peaked in March at 47 percent.  

As of October 31^st, we had 3,061 houses listed for sale, which is a 10 percent decrease from the number we had in October 2010 (3385). This inventory level based on the last 12 month's sales gives us a 15.2-month supply of homes for sale, which is down from last year when we had a 16.6-month supply.  

This data reflects home sales across Berrien, Cass and the westerly 2/3 of Van Buren counties and should not be used to determine the market value of any individual property. If you want to know the market value of your property, please contact your local REALTOR^®.  

Financing Rates At A Glance

When buying a home – Good news for home buyers today is twofold. The thirty-year mortgage rate is slightly above 4 percent and monthly mortgage payments are at record lows. A home buyer purchasing a typical American home at current average rates would have a mortgage payment of just $698 a month, similar to payments buyers would have faced 30 years ago. Home prices were considerably lower in 1981, but mortgage rates were a staggering 18 percent. Today's prices are higher, but because of these record low mortgage rates, monthly payment obligations are significantly reduced. This is a good time to talk to your REALTOR to learn more about the current benefits of homeownership. 

To view properties that are for sale in your local area go to www.swmar.com and click on "Find Properties". 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 can be contacted at 269-983-6375 or through their website at www.swmar.com.