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A Look At The Housing Stats
Here’s a look at the Grand Rapids Real Estate Market for May 2019. According to a report released by the Greater Regional Alliance of REALTORS® (GRAR). Grand Rapids continues to favor sellers in today’s real estate market.
The total number of homes still available this month is 1102. The current inventory for Kent County is relatively unchanged under 1% compared to the previous month. April property sales were 725, 8.93% higher than the 648 sales from the previous month. There was an increase of 8.12% in the pended properties in April, with 978 properties versus 795 the previous month. The Active Median For Sale Price of Homes in the Greater Grand Rapids Area for April is $346,165 down 5.8% from $367,000 last month.
The Median Sold Price in April was $209,962, up 9.36% from last month of $196,300. The Months of Inventory based on Closed Sales of 1.4 was unchanged compared to last month.
May is a Sellers Market!
Currently, sellers are receiving 96.7% of their listing price. Grand Rapids continues to favor sellers in today’s real estate market.
See The Greater Grand Rapids Homes for Sale Under $349,000
What Does This Mean?
Home Sales (sold) are up 8.93%. Property Under Contract (pending) is up 8.12%. The total number of For Sale Listings is unchanged. The Average For Sale Price of Homes is down 5.8%. The Median Sold Price in April is up 9.36% compared to the previous month.
The Spring Market Is Still Sizzling
And A Hotter Summer Market Is Right Around The Corner!
Here is what’s going to happen:
Here’s my prediction: Looking at the above number all are in favor of the seller except for the Average For Sale Price. I’m sorry to sound like a broken record but the sellers will continue to see gains in prices due to this fact, there is a serious lack of inventory. What’s going to ease this lack of inventory? Your guess is as good as mine so here’s my take on the Grand Rapids Real Estate shortage.
Why is there such a lack of inventory?
Let’s return to the Great Recession. How many general contractors (builders) and developers got bit by the housing crunch and how many builders and developers lost their shirts in the housing crunch? What about all the subcontractors and general labors…gone. They’re working in factories or some type of general labor or moved out of the state of Michigan.
Secondly, there is less and less land that is for sale and worth developing. If it’s too far out and the development has to hook up to public utilities, the developer has to pay to run the utilities to the development. It might be cost prohibitive to develop the land or the lots would cost too much. It that isn’t a possibility then the lot will have a well and septic system. Depending on how deep the well has to be drill, that will add to the costs of the lot.
Most builders are no longer building entry-level homes. The reason for that is there is no money in building entry-level homes especially when the lot costs are so expensive. According to GRAR, in the last 6 months in Kent County, there have been 160 new homes that have sold with an average sales price of $324,865. Look around and ask yourself how many of your friends and family can afford a new $325,000+ home? Don’t forget the new homeowner might have to do the landscaping and more.
Looking to sell your home and purchase another home? Maybe you’re an empty nester and looking at condos? It’s not a market where you can write a contingent offer and then ask the sellers to take their home off the market while you try and sell your home. You’ll need to check into special financing to purchase another property. Not sure if you qualify, give me a call and we can discuss your options.
If you are still thinking of selling your house you are in luck because it’s still a Sellers Market in the Greater Grand Rapids Area.
What Does This Mean If You Are Buying A House In Grand Rapids?
If you are a buyer in the Grand Rapids Real Estate Market and you’re waiting for prices to depreciate…even slightly, you could be in for a long wait. Don’t believe me, check out this report. Grand Rapids is the second hottest real estate market in the United States and we are still in a seller’s market 1.4 months of inventory.
A seller’s market is 0-3 months of inventory. A neutral market is 3-6 months and a buyers market is 6 months of inventory or more. With the Months of Inventory a seller’s market and the Average Homes For Sale Price appreciating, this means its still a seller’s market.
Interest rates at the time of this writing are 4.25% over 30 years. If you have a great credit score or a large down payment then you might be able to get a lower interest rate. If you don’t have a great credit score or a huge down payment then for qualified buyers, MSHDA has a down payment assistance program that is a $ 7500-second mortgage but there is no payment or interest on this second mortgage. Contact me and I can explain more about this program.
Seems like there is a lot of money in the market place and some buyers are making cash offers without doing inspections. Why do I bring this up? As a buyer, you might encounter this more than once so don’t get disgruntled. Keep your eye on the prize and that’s your own home.
What Does This Mean If You Are Selling A House In Grand Rapids?
Selling your home in today’s Greater Grand Rapids Real Estate Market? Spring has come and is still hanging around. Rain, Rain go away and come back another day.
I predict that the Seller’s Market will continue into the foreseeable future. My reasoning is simple there is still a lack of inventory in the Greater Grand Rapids Real Estate Market and that will continue to push house prices higher.
Remember, even in this hot and crazy real estate market you still need 3 things to sell a house, 1.Location 2.Price 3.Condition.
You still need a really good marketing plan. This is not a good marketing plan. 1. Put a sign in the yard. 2. Put it on the MLS. 3. Pray that it sells. Want a great marketing strategy? Call Me Doug Hansen at 616-485-8955.
Make use of my home valuation calculator and give me a call to discuss how to make sure you’re setting the right asking price. Did you know Zillow Zestimates have been known to be off by 10%-30%? So do you want to try and use that method to sell your largest investment?
Don’t like or don’t want to use an automated home valuation calculator? Contact me and I’ll give you a free market analysis and there’s no obligation. Contact information is email@example.com, call or text 616-485-8955.
Find Out Your Home’s Value Instantly!
Wondering what your home might be worth? Find out instantly with our 15-second home value calculator. See Additional Reports on the Grand Rapids Real Estate Market.
Here are the most recent home listings just added to the database in the average sold price range for The Grand Rapids Real Estate Market.