October 2022 Housing Market Report for Kalamazoo Michigan
October 2022 Housing Market Report
The real estate market in Michigan continues to slow down as we move into fall. Prices are up at the gas pump, the grocery store, and mortgage rates keep going up … we’re all feeling it and it stinks. But what goes up, will eventually come down. If you’re thinking of buying, selling, or relocating to Kalamazoo or the surrounding areas, stick around because you’re going to want to know what’s happening in our local real estate market.
We have 342 active listings in Kalamazoo County. Our low point this year was in Feb where we had 119 listings, so we have almost 3 times more active listings on the market today than we had earlier this year. In other words, there used to be a shortage of homes on the market, and now that number is rising and giving buyers more homes to choose from.
There are 236 listings currently pending which is a significant decrease from last month. we’re seeing buyers coming in with offers that are below asking price for the first time, AND looking for closing costs often range between 2% and 6% of the purchase price which we haven’t seen in a long time. Good for buyers, but for some seller’s it’s a pretty big pill to swallow.
Days on market is going up a little each month so it taking longer for homes to get into contract
We’re at 14 days and we expect that to continue to rise. But keep in mind we do see a lot more relocations this time of year, and more serious buyers looking, meaning, if a buyer is willing to bundle up and go outside, you know they are serious. So it’s slower, but we typically see inventory rise in the fall heading into the spring.
We saw 308 homes sell in the last 30 days which is down slightly from the previous month.
The average sales price in September was $271,500. So we did see a drop in average sales price of from the previous month by about $41 thousand dollars ($40,648) or 13% which is pretty significant. But in comparison to last year at the same time, the average sales price was $269,893
307 new homes came on the market in September. In comparison to January there were 192 homes, so that’s almost 1-1/2 times more homes than we had the beginning of the year. If we do the math and take 307 / 30 days, that’s 10 more homes coming on the market every single day than what is coming off the market and selling. So inventory is still going up.
As you probably heard, the average fixed rate mortgage rate according to Freddie Mac is 6.94% which is the highest it’s been since January 2003. Rates and affordability are definitely a big factor as far as what’s causing the market to struggle.
Affordability challenges have priced many buyers out of the market. And as the market continues to shift, experts project homes will take longer to sell and prices will continue to slow down in the months ahead.
But here’s something. Housing in Kalamazoo County is still VERY affordable. In comparison to other parts of the country, our housing is 51% cheaper than the average in the United States. You can actually purchase a 3 bedroom 2 bath house for $250k whereas in NY, that would cost you double. Our cost of living is 24% lower than the national average. Jobs are plentiful (Stryker, Pfizer, WMU, Bronson Hospital), taxes are low and transportation costs tend to be 6% lower. Average commute time is 20 minutes, and there’s no traffic– expect on Friday at 5pm, you might have to wait at the stoplight on Oakland and Milham twice, but that’s about it. Yeah, our market might be slowing down, but Kalamazoo County is one of the best places to live in Michigan. According to US News & World Report, Kalamazoo is ranked the 3rd Best Places to Live in Michigan and ranked #40 as best places to live in the United States. And in terms of affordability, Kalamazoo is #16 in cheapest places ot live in the US
So the housing market might be challenging at the moment, but overall, it’s a pretty sweat deal to live here. So there are some thoughts. If you want to know other reasons for choosing Kalamazoo as your home, check out this next video. Let me know if you have any questions in the comments below.
If you would like a copy of my slides from my monthly market report, click below!