Enjoy this Edition of the Grand Rapids Real Estate Market Report – October 2019. You can also do a home search and save your favorite properties and set up a search. You’ll be alerted as soon as a matching property hits our database. It’s Exclusive.
Grand Rapids Is The 15th Best Places To Buy A House In America
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Dip In Existing-Home Sales Signals “Unbalanced” Market
“Home prices are rising too rapidly because of the housing shortage, and this lack of inventory is preventing home sales growth potential.” Lawrence Yun, Chief Economist National Assoc of Realtors
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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.
See All the latest homes that have been listed here are priced at $349,000 or less.
What Does This Mean?
October property sales were 1032, 3.8% lower than the 1073 sales last month. The Property Under Contract (pending) is up 9.1%, with 1171 properties this month versus 1073 last month. The total number of For Sale Listings available this month is 2036. The current inventory is down 1.6% compared to the previous month. The Average For Sale Price of Homes in October was $345,000, down 1.7% from $351,000. The Average Sold Price in October was $239,000, down 1.6% from $243,000 last month.
Temperatures are starting to fall and so is the Grand Rapids Real Estate Market.
Here is what’s going to happen and has happened:
As I look out my office window it is the same as yesterday…a dark dreary cloudy day. I’m afraid that’s the forecast for the Grand Rapids Real Estate Market, dark and dreary. Sales will typically slow once we hit the middle of November through March and April when the market will start to be revived.
Of the above 5 categories, four of them are going in a negative direction and the one category that is positive is one we really don’t want to see going up. The Grand Rapids Real Estate Market will continue to slow over the next 4-5 months. So get out there and start building snowmen and snowwomen!
The Graphs show how the Grand Rapids Real Estate Market fluctuates month over month and year over year. The graphs go back 5 years and notice how the market peaks in June and July. The reverse of a hot market is a slow market which is December through February. Pace yourself and if you can hang on until the temps start to rise you could see significant gains in your net proceeds from the sale of your house.
Below is an interactive graph. Just click inside the graph and it will display the # of Closed Sales and Average Sales Price. Notice the Average Sales Price in January 2014 was $132,134 and October 2019 the Average Sales Price was $217,241. Over $85,000 in appreciation in almost 6 years. Can you save roughly $14,000 a year?
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 DO NOT WAIT! Mortgage interest rates have fallen into the mid 3% to low 4% range. This means that you can afford more house than when interest rates were at 4.75%. 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 1.3 months of inventory.
With the lack of inventory of existing properties, the prices will continue to appreciate. If you wait you will pay substantially more in the next year than now. And here is the worst part of that equation, you’ll miss out on that year’s appreciation which could be 5-10%. You do the math, a $200k home, next year it’s worth $220k. You lose $20k, not a great feeling.
A seller’s market is 0-3 months of inventory. Currently, we are at 1.5 months of inventory and its been that way for the last couple of years. It doesn’t look like it will become a neutral market for the next 6 to 12 months if not longer. 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.
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 owning your own home.
What Does This Mean If You Are Selling A House In Grand Rapids?
Summer is becoming a small dot in the rearview mirror of the summer season. Thanksgiving and Christmas are right around the corner. If you’re here to see a rosy prediction…well I’m sorry to burst your bubble because it’s going to be 3-5 months before the Grand Rapids Real Estate Market starts to heat up again.
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 a 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. The 3 “P” marketing plan 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 or Text Doug Hansen at 616-485-8955 or email doughansen@grar.com.
A key reason existing home sales have remained lackluster despite record low unemployment and spectacularly low interest rates is homeowners now stay in their homes for about 13 years, up from eight years as recently as 2010. Thus, the inventory of for sale homes has plummeted from 3/100 households as recently as 12/07 to just 1.25 in 9/19, a decline of 58% and the lowest level since at least 1985. Elliot Eisenberg, the Bowtie Economist
Get the value of your home instantly! CLICK HERE home valuation calculator. Give me a call to discuss how you can make your home more valuable with little to no money and 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 instant home valuation calculator? Contact me and I’ll give you a free market analysis and there’s no obligation. Contact information is doughansen@grar.com, call or text 616-485-8955.
