Fast AF Summary
- Despite concerns about interest rates and inventory, the market is still experiencing sustained growth and high demand for homes.
- The West Michigan real estate market continues to strongly favor sellers, with homes selling quickly and for more than their list price.
- The low cost of living, coupled with the region’s thriving job market, excellent schools, and high quality of life, make West Michigan an attractive destination for individuals and families looking to relocate.
- Buyers in West Michigan are finding themselves in multiple offer situations again, which can create a competitive bidding environment and drive up the sale price.
- Anyone who invests in a property in the region can expect to see their equity increase over time, making it a wise investment choice for the long term.
- If you feel like you missed the peak of the market, don’t worry – the market is still growing and evolving, with many opportunities for buyers and sellers alike.
- Purchasing a property in West Michigan is a fruitful choice for everyone, regardless of interest rates, as the region offers many opportunities for success in the real estate market.
It's Still a STRONG Sellers Market
Of course the media is lying to you, are you even surprised anymore?
The West Michigan real estate market continues to favor sellers despite concerns about interest rates and inventory. In fact, the market has been experiencing steady growth over the past few years, and this trend shows no signs of slowing down. According to recent data (see below), the median sales price is almost back up to the “record high” of last year during the booming real estate market and low interest rates.
One of the reasons for this sustained growth is the continued demand for homes in the region. West Michigan is an attractive place to live for many reasons, including access to great schools, a low cost of living, and a thriving job market. This has led to an influx of people moving to the area, creating high demand for homes.
Another factor that has contributed to the strong seller’s market is the lack of inventory in the region. While this may seem like a disadvantage for buyers, it has created an opportunity for sellers to command higher prices for their homes. With fewer homes available for sale, buyers are willing to pay a premium to secure a property in this desirable location.
Inventory Is Still Tight - And Getting Tighter
The Demand for Houses (Even at 7% Rates) Outweighs the Supply Still
West Michigan remains an anomaly in the current national real estate landscape in that it is still possible to purchase a home with a mortgage payment that is less expensive than rent. This is especially true in the Grand Rapids, Kalamazoo, and Battle Creek areas, where the cost of living is relatively low compared to other parts of the country. This is due in part to the fact that the majority of the people moving into the area are high-paid tech professionals or individuals with other lucrative jobs, working for companies like Stryker and Pfizer, that are expanding their presence in the region.
Inventory Levels on the market are approaching the lows that we felt last March where the number of active homes for sale is dwindling due to strong buyer demand.
Despite this influx of high-paying jobs, the overall cost of living in West Michigan remains incredibly affordable. This is especially true when it comes to housing costs, as the median home price in the region is still well below the national average. For many people relocating to West Michigan, this affordability is a major draw. They can enjoy all of the benefits of living in a thriving and vibrant community, without having to break the bank to do so.
Furthermore, the area’s affordability is not just limited to home prices. Other costs, such as food, transportation, and healthcare, are also significantly lower than other parts of the country. This is due in part to the fact that West Michigan has managed to retain its small-town charm, even as it has grown into a major economic center. This has allowed the region to avoid many of the cost-of-living issues that have plagued other cities, such as congestion, pollution, and high taxes.
Overall, West Michigan remains an attractive destination for individuals and families looking to relocate. With its thriving economy, affordable cost of living, and high quality of life, it is no wonder that so many people are choosing to make this area their home. Despite the national real estate trends, it is still possible to find a home that is less expensive to own than to rent in West Michigan, making it an even more attractive option for those looking to put down roots in this thriving and dynamic region.
People are Paying Over Asking Again
The Demand for Houses (Even at 7% Rates) Outweighs the Supply Still x 2
Buyers in West Michigan are finding themselves in multiple offer situations once again as the real estate market continues to favor sellers. This means that when a desirable property comes onto the market, several buyers may be vying to purchase it, which can drive up the sale price and create a competitive bidding situation. This is due in part to the low inventory in the area, as well as the high demand for homes from buyers who are attracted to the region’s many advantages, including a strong job market, excellent schools, and a high quality of life.
As a result of these competitive bidding situations, the sale to list price ratio in West Michigan has begun to creep back up to 104%, which is the same level it was at last year. This means that homes are selling for more than their list price, indicating that there are more buyers than there are homes available for sale. While this can be frustrating for buyers who are looking for a deal, it is good news for sellers who are able to command a premium for their properties.
After a period in December where negotiation was possible, we're seeing a sharp rise in the sale to list price ratio.
Despite the competitive market, it is still possible for buyers to find their dream home in West Michigan. The key is to work with a knowledgeable and experienced real estate agent who can help navigate the competitive landscape and identify properties that meet their needs and budget. With patience, persistence, and the right guidance, buyers can find a home that they love in this thriving and dynamic region.
In a competitive market, buyers need to be prepared to act quickly and decisively when they find a home that they like. This means being pre-approved for a mortgage, having a solid understanding of the local real estate market, and having a clear idea of what they are looking for in a home. It also means being flexible and open-minded, and being willing to compromise on some of their wish list items in order to secure a property.
Buyers can also increase their chances of success by working with a real estate agent (Like your favorite Zac Folsom Group Agents) who has experience navigating a competitive market. A good agent will be able to help buyers identify properties that meet their needs, advise them on the local market conditions, and help them put together a competitive offer. They can also help buyers navigate the negotiation process, which can be particularly important in a multiple offer situation.
The Prices are Going Higher than Last Year
The Demand for Houses (Even at 7% Rates) Outweighs the Supply Still x 3
Last year, the West Michigan real estate market experienced a surge in home prices that many experts predicted would level off and even decline over time. However, the market has surprised many by only having a slight decrease. Our most recent data from the SWMRIC MLS shows that the median sold price in the area is climbing quickly and is projected to surpass last year’s amount. Additionally, the new median list price for homes is also higher than it was last year, indicating that the demand for homes is still strong in the region.
All the median prices are trending upwards due to buyer demand despite a small reaction period for the rates rising so quickly.
One of the primary reasons for this sustained growth is the continued demand for homes in West Michigan. Despite concerns about interest rates and inventory, the region remains a highly attractive destination for individuals and families looking to relocate. This is due in part to the area’s strong job market, excellent schools, and overall high quality of life. As a result, there is still a significant amount of demand in the market for new homes.
Another factor contributing to the rise in home prices is the low inventory in the region. With fewer homes available for sale, buyers are willing to pay a premium to secure a property in this desirable location. This has led to multiple offer situations and bidding wars for many homes, which in turn is driving up the sale price.
Overall, the West Michigan real estate market is defying many of the projections that were made after last year’s boom. Home prices are still climbing, and demand remains strong in the region. Anyone looking to buy or sell a home in West Michigan should be prepared for a competitive market, but with the right guidance and preparation, they can still find success in this thriving and dynamic real estate landscape.
What Does this Mean for YOU?
The Demand for Houses (Even at 7% Rates) Outweighs the Supply Still x 4
Investing in real estate right now is likely to result in an increase in equity over the next several years. Despite concerns about interest rates and inventory, the West Michigan real estate market remains strong, with sustained growth and high demand for homes. This means that anyone who invests in a property in the region can expect to see their equity increase over time, making it a wise investment choice for the long term.
If you feel like you missed the peak of the market, don’t worry. While there was a surge in home prices last year, the market is still growing and evolving, with many opportunities for buyers and sellers alike. Home prices are continuing to climb steadily, and demand remains high in the region. This means that there are still opportunities for buyers to find a great deal and for sellers to command a premium for their properties.
Anyone who bought at the peak of the market has not lost equity. While there may have been concerns about a potential market correction after last year’s boom, the West Michigan real estate market has remained stable and even continued to grow. This means that anyone who bought a property at the peak of the market can still expect to see their equity increase over time, making it a solid investment choice.
Regardless of interest rates, purchasing a property in West Michigan is a fruitful choice for everyone. With a strong job market, excellent schools, and a high quality of life, the region remains a highly attractive destination for individuals and families looking to relocate. The low cost of living, coupled with the sustained growth of the real estate market, makes it an ideal place to invest in a property. Whether you are a first-time homebuyer, a seasoned real estate investor, or somewhere in between, West Michigan offers many opportunities for success in the real estate market.
