If you want further proof that it is decidedly a sellers market for housing in Michigan’s Great Southwest, look no further than the just released numbers for the month of May where dollar volumes hit triple-digit increases for both the month and year-to-date, even as inventory continues to languish.
Southwestern Michigan Association of Realtors Executive Alan Jeffries says that for the month of May 2021, “The housing market showed no signs of slowing down.” In fact, he says, “The May 2021 housing market numbers blew past last year’s numbers, and in most cases, numbers increased by percentages in the triple digits.” Numbers last month (May of 2021), except for the number of houses sold in the month, set record increases in the year-over-year comparison that dates back to 2006.
In May 2021, the number of houses sold soared to 351 from 142 sold a year ago in May 2020, for a 147-percent increase. Yet that is not the highest number of houses sold in a month of May, inasmuch as that record stands at 361 houses sold in May of 2019. Year-to-date, at the end of May 2021, a total of 1,395 homes have been sold, once again a new sales record. Last year by the end of the month of May, a total of 952 houses had been sold. The previous record was 1,302 houses by the end of May in 2019.
Jeffries tells us selling prices also continue to soar, setting new record levels every month so far in 2021. The average selling price last month, May of 2021, was $306,666 as compared to $240,374 in May of 2020, marking a 28-percent increase. Year-to-date selling prices at the end of May also set records in the year-over-year comparison. The year-to-date average selling price in May of 2021 rose 38-percent over May of 2020 at $310,262 as compared to $ 224,160.
The median selling price in May of 2021 increased 30-percent to $225,000 from $173,250 a year ago in May of 2020. Year-to-date, the median selling price has climbed 21-percent to $212,400 as compared to $175,126. The median selling price and year-to-date median selling price also set new record prices in the month of May in the year-over-year comparison.
The median price is the price at which 50% of the homes sold were above that price, and 50% were below.
Meanwhile, the major housing issue that is helping to drive record pricing is the inventory of homes for sale, which once again plummeted by 48-percent from a year ago to 743 versus the 1,420 on the market last year at the same time, keeping the inventory of houses for sale down to a 2.5-months supply of inventory available for buyers. The available inventory has not risen above 2.5-months supply in any month yet this year. At the end of May in 2020, the market had a 6.2-months supply of houses for sale. By way of comparison, in May of 2009, there were 3,452 houses for sale and a 16.4-month’s supply…