“After a cold start in January for the SWMI housing market, February market activity did not defrost. The number of houses sold in February fell to 137 houses, the lowest level since 2009. The inventory of houses for sale, selling prices, and the mortgage rate all dropped below those in February 2025. Selling prices peaked in February 2025 in the year-over-year comparison that includes prices back to 2006,” according to Luke Jeffries, Association Executive, Southwestern Michigan Association of REALTORS®, Inc.
Jeffries continued, “In February 2026, the market ended with an inventory of 634 houses for sale, down 9 percent from 699 houses for sale in February 2025. Homebuyers in Allegan, Berrien, Cass, and the westerly 2/3 of Van Buren counties were looking at a 3.8-months supply of homes, up slightly from the 3.7 supply level in January 2026.”
The Freddie Mac mortgage rate in February was 5.98, down slightly from the January rate of 6.10, and down from the 6.15 rate in December 2025 for a 30-year conventional mortgage.
The number of houses sold in February 2026 decreased 10 percent from that sold in February 2025 (137 vs. 152). Year-to-date, the number of houses sold decreased 16 percent (272 vs. 325).
The average selling price at $338,348 in February 2026 dropped 19 percent from January 2026 ($418,285) and 18 percent from February 2025 ($410,203).
The February 2026 median selling price slipped 5 percent below that in February 2025 ($272,000 vs. $285,000). The median selling price in January 2026 was $270,000.
The median price is the price at which 50% of the homes sold were above that price, and 50% were below.
The total dollar volume with fewer sales decreased 20 percent to $108,987,203 from $135,435,416 in February 2025.
There were three bank-owned or foreclosed homes as a percentage of all transactions in February, or 2 percent of all closed transactions. The highest percentage in February was 75 percent in 2009.
