Southwest Michigan Housing Market Struggles With Low Inventory

A lack of inventory and record-breaking selling prices have kept the southwest Michigan housing market behind in sales for the first five months of 2022 compared to 2021. However, selling prices rose 10% in May and set records in the year-over-year comparison since 2006. The Southwestern Michigan Association of Realtors says in May the market grew modestly over April, while the average selling price was down 8% from April. The median selling price was down 1% for the month. However, when comparing May of this year to May of 2021, the average selling price was still up 14%. Sales in May were 11% lower than May of last year, and for the year overall, sales are down 14% from last year. The inventory of houses for sale, already at a very low level, fell 3% 743 in May 2021. This brought the inventory of houses for sale down to 3.1 months supply. For a comparison, in 2010 there was a 16.4 month supply of inventory. The realtor’s association says mortgage rates in May were same as as in the month before.

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