Home prices in southwest Michigan hit record highs in October.
The Southwestern Michigan Association of Realtors says sales in October continued to decline, making it the tenth consecutive month when sales fell behind in the same month of 2022.
Perhaps a factor in those declining sales are the inflated prices. The association says the average selling price in October of 2023 increased 1% to $392,000 compared to $386,000 in October of 2022. The median selling price in October of 2023 was $274,000, up 6% from $260,000 in October of 2022.
Sales were down 7% from the same month a year prior.
The realtors association adds low inventory is another reason for both the declining sales and high prices with an 8% decrease in the level available from a year ago. The inventory of houses is now at a 4.9-month supply. For comparison, in October of 2010, there was a 16.6-month supply of houses.
The number of bank-owned or foreclosed homes as a percentage of all transactions decreased to 1% from 3% in September. The highest percentage ever recorded for October previously was 34% in 2009.
