Here is the Grand Rapids Real Estate Market Report - February 2019. If you're not sure its a good time to buy or sell a home? Read this report then contact Doug Hansen to get the advice on what you need to do next.
A Look At The Housing Stats
Here’s a look at the Grand Rapids Real Estate Market for February 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 1433. The current inventory is down 8.3% compared to the previous month. January property sales were 546, 34.1% lower than 828 from the previous month.
There was an increase of 22.7% in the pended properties in January, with 788 properties versus 642 the previous month. The Average For Sale Price of Homes in the Greater Grand Rapids Area for January is $332,000 up 0.3% from $331,000 last month. The Median Sold Price in January was $185,000, down 1.6% from last month of $188,000. The Months of Inventory based on Closed Sales of 2.6 was up 37.1% compared to last month.
February is a Sellers Market Currently, sellers are receiving 96% of their listing price. Grand Rapids continues to favor sellers in today’s real estate market.
What Does This Mean?
"Polar Vortex!" Only the TV meteorologist would use a term like "Polar Vortex". Here in Michigan, its simply called winter. I will use their term "Polar Vortex" to describe the Grand Rapids Real Estate Market.
All you need to do is look at the Number of Sold Properties, For Sale Listings and Median Sold Price for January, all were down. But here is the caveat, Pended Properties were way up! That's a great sign, that means there are still buyers out there looking to buy your house! Home Sales (sold) are down 34.6%. The Property Under Contract (pending) is up 22.7%. The total number of For Sale Listings is 1433 down 8.3%. The Average For Sale Price of Homes is up 0.3%. The Median Sold Price in January was $185000 down 1.6% compared to the previous month of $188,000.
So the weather hasn't changed a whole lot, still gray skies, snow flurries and a Polar Vortex in the 1st week of February. Oh ya, I hopped a curb with my car and now it's $700 for a new wheel and wheel bearing. Yea! Apparently its Christmas in February! BABY, IT'S COLD OUTSIDE!
Now back to my prediction for the Grand Rapids Real Estate Market. Currently, we are in the middle of the Real Estate Winter Blues. Every year for the last 28 years (my time in the real estate business) there is always a slow period from Thanksgiving through St Valentines Day.
My conclusion is ??? The Winter Blues will continue to depress the Grand Rapids Real Estate Market for the next month or two. Once we get through the Dog Days of Winter and the weather starts to break, we'll gradually get back to a HOT REAL ESTATE MARKET!
I know the Sold and For Sale numbers are down but the Pending numbers are up. Remember, Pending home sale will turn into Homes Sold, so that is a look into the future of the real estate market. All the numbers will begin to rise, more properties will hit the market which in turn will bring out more buyers thus more Pending and Sold Properties and higher For Sale Prices and higher Sold Prices. The reason is simple as to why the real estate market will heat up "THERE IS NO INVENTORY!"
So as the weather starts to warm so will the Grand Rapids Real Estate Market. Does this mean that you can’t sell in the winter months? Absolutely not, it’s just the opposite, there is less competition because there are fewer homes on the market and buyers are going to be SERIOUS about your home. 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?
At the end of January, the Grand Rapids Real Estate Market saw a decrease of Homes For Sale. The January 2019 Months of Inventory Based on Closed Sales of 2.6 or up 37.1% from the previous month. We are still in a seller's market. 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 Homes For Sale Price neutral, this means its still a seller’s market. Here is the good news, there will be fewer buyers in the market and less pressure on putting in a higher than list price offer now is a great time to buy.
Wait until spring and there will be more houses to choose from but the number of buyers will go up also thus multiple offer situations. No one knows where interest rates will go but if you're a betting man or woman, you would want to double down on them going up. Currently, interest rates are 4.5-5% depending on a number of factors. A lot will depend if the Federal Reserve continues to look at inflation. If the economy is cooking, The Fed will cool it down by increasing the discount rate.
A big factor in getting a lower interest rate is a high credit score. 780-800 plus on your credit score should get you a lower interest rate.
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 in the winter months is still a great time to sell. The reason is simple, there are fewer homes for sale and that means less competition.
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. If one of those three is off you may be sitting or making multiple price adjustments. If that is the case, there is a good chance you’ll sell lower than if you priced it correctly in the beginning.
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. Unsure an automated home valuation calculator is correct? Contact me and I’ll give you a free market analysis and its free.
Contact information is email@example.com, call or text 616-485-8955. Find Out Your Home's Value Instantly!
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Here are the most recent home listings just added to the database in the average price range for Grand Rapids.