Latest on Grand Rapids Real Estate Price
People will often ask me what the latest trends are in the local
market, from average sale prices to how long homes are staying on the
market. Sometimes they’re just being polite, playing to the interests of
a Grand Rapids real estate agent! But often those questions come from
people who are considering selling their home.
In general, I can say
that average listing prices in the Grand Rapids area, and around the
country, have been trending up for several months, and still appear to
be rising at a slower rate. That doesn’t necessarily mean that the
appraisal of every individual home has increased, but overall it’s good
news for sellers, especially those who may have been underwater on their
mortgage.
In fact, the year-over-year increase in U.S. home prices
over the summer was greater than any time since 2006. The price
increases have been fueled by increasing sales (which also reached a
6-year high in August) and a limited supply of available homes. Of
course there are several market factors that affect home sales prices,
including:
- Mortgage interest
rates. Mortgage interest rates have been inching upwards the past couple of
months, and then fell a little lower at the end of September. Still, rates
remain historically low for the time being. - Foreclosures
. One
of the factors affecting home prices in the last few years was the exceptionally
high number of foreclosures on the market. However, that has changed
dramatically in 2013. The rate of foreclosures has decreased to an 8-year low. Now
that much of the inventory of foreclosed homes has now been absorbed,
foreclosed homes are no longer having as much effect on prices as they did when
they made up such an outsized share of the market. - Politics!
How is
the recent government shutdown affecting Grand Rapids home prices? It’s a
little early to speculate about that, since we don’t know how long the
stalemate will continue, and whether it could eventually affect consumer
confidence. For now, it seems that buyers who need a new home are continuing to
look anyway. The loan process may be a little slower, especially for FHA loans,
and income verification will take longer with the IRS shut down. But the only
type of loans that are completely stalled with the shutdown are USDA loans.
All these general trends are interesting to a Grand Rapids real estate agent. But if you’re thinking of putting your home on the market, what really matters is where you should price your home. That’s why I offer a free home valuation. To request your home valuation today, simply fill out our form, or you can always call me at 616-485-0952. Before you know it, your home could be part of the trend!
