Enjoy this Edition of the Grand Rapids Real Estate Market Report - June 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.
A Look At The Housing Stats
Here’s a look at the Grand Rapids Real Estate Market for June 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 for sale this month is 1223. The current inventory for Kent County increased by 7% compared to the previous month. May property sales were 963, 23% higher than the 742 sales from the previous month. There was an increase of 10% in the pended properties in May, with 1083 properties versus 971 the previous month.
The Median For Sale Price of Homes in the Greater Grand Rapids Area for May is $349,450 up 1% from $346,165 last month. The Median Sold Price in May was $220,000, up 5% from last month of $210,000. The Months of Inventory based on Closed Sales of 1.5 was up .1 versus last month.
June Is A Sellers Market!
Currently, sellers are receiving 100% of their listing price. Grand Rapids continues to favor sellers in today’s real estate market.
A Look At The Housing Stats
Home Sales (sold) are up 23%. Property Under Contract (pending) is up 10%. The total number of For Sale Listings is up 7%. The Median For Sale Price of Homes is up 1%. The Median Sold Price in April is up 5% 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 and has happened:
Here's my prediction: Looking at the above number all are in favor of the seller all the numbers are green. That's all good except the number of For Sale Listings is also up, ever so slightly. The number of sold properties is up 23% Pended properties are up double-digit, Sold prices are up, so if you are thinking of selling or buying, my suggestion is to do it now. I know I sound like a broken record of "No Inventory" "No Inventory" but that's what's causing the rapid appreciation in home values.
Why is there such a lack of inventory? Here is a couple of thoughts.
- There are not as many small builders out there as there were before the recession. What I mean by a small builder is they may build 2-6 homes per year. If you have 100 small builders, you can see how this could affect the number of new homes that are being built. Another way of saying this is the lack of competition.
- Builders cannot afford to build a 1000 sqft ranch home and sell it for $199k when the cost of the lot, building materials, labor have all gone through the roof (sorry for the pun).
- Land developers cannot purchase and develop raw land and sell lots for $39k to $59k anymore, its more like $129k to 159k. The plat restrictions will require a minimum sqft of 1500-1800 sqft for a ranch style home. Now factor the cost per sqft of $200-$250 and you can easily see why new homes cost $275k-$400k.
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 1.5 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.
Interest rates at the time of this writing are 4%-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. 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?
Selling your home in today’s Greater Grand Rapids Real Estate Market? Spring has sprung (well sort of), Greater Grand Rapids is still getting its share of rain. Lake Michigan at the time of this writing is up 29 inches. Pretty soon if you live in Jenison, you'll have Lake Michigan frontage. Just kidding.
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 or text Doug Hansen at 616-485-8955 or email firstname.lastname@example.org.
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 email@example.com, call or text 616-485-8955.
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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.