Market Update 2021 Q2

Econ 101: the hot real estate market in Kalamazoo isn't due to high sales volume: it's entirely due to high demand coupled with low supply.

THE HOTTEST SUMMER ON RECORD

Kalamazoo ended July with only 325 single family and condominium homes on the market. It’s almost impossible to describe how low this is, so we’ll put a graph of the supply of homes over the last 10 years here:

Market Volume Steady

It’s not that we sold more homes; it’s that we started with fewer homes on the market. The total number of home sales was actually LOWER than our typical second quarter.

Market Factors

So, while sales volume is below normal, there are two factors increasing demand:

  • Millennials are finally buying homes
  • Interest rates are ridiculously low

And two factors limiting supply:

  • Baby Boomers aren’t selling their homes
  • New construction costs are ridiculously high

What Did that do to Prices?

The Kalamazoo market saw the median price of a single-family home increase by 21% over one year ago, which is similar to the national trend. However, Kalamazoo’s median price ($235,000) is still far below the national median price ($367,000).

Will Prices Keep Going Up?

I don’t know.

But…the factors that caused the prices to increase this year are still in play. Plus, Stryker, Pfizer, and FedEx are all adding high-paying jobs to the Kalamazoo market.

What Should You Do?

My mentor always told me that you can’t time the market; a home is a lifetime investment, not a commodity to trade. The time to buy or sell a home is when it is right for you.

Kalamazoo County Data

There’s more information below, but feel free to contact us for a market analysis on your home. We take into account your specific market to help you list your home for the right price.

Single Family Stats

Q2 2020 Q2 2021 Change
New Listings 1,373 1,344 -2%
Pending Sales 1,193 1,123 -6%
Closed Sales 852 998 17%
Days on Market Until Sale 6 4 -33%
Median Sales Price $194,250 $235,000 21%
Average Sales Price $236,475 $274,914 16%
End of Quarter Inventory 447 270 -40%

 Condominium Stats

Q2 2020 Q2 2021 Change
New Listings 144 130 -10%
Pending Sales 117 112 -4%
Closed Sales 79 115 46%
Days on Market Until Sale 19 7 -63%
Median Sales Price $215,900 $220,000 2%
Average Sales Price $231,817 $241,479 4%
End of Quarter Inventory 99 55 -44%

The Number of Listings is Still Down

The Number of Home Sales is Typical for Q2

Median Sales Price Continues to Set Local Records

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