Market Update- May 2012
The real estate market in Grand Rapids has exploded over the last few months. New listings are down by 7% year-to-date, while closed sales are up by 17%. The future looks even brighter if you look at the statistics for May. May 2012 sales were up by 34.7% compared to May 2011. With less homes for sale and more people buying, we are sitting at a measly 3.4 months of inventory. Just to give this perspective, in early 2011 we had a 12 month inventory of homes for sale, and a normal/stable market is 6 months.
Grand Rapids is officially a sellers' market right now. Buyers do not have as many properties to choose from, and multiple offers have become the new normal for properties that are priced right. Although prices are starting to creep upward, home ownership is still incredibly affordable. Interest rates are still sitting around 3.8-4.0% for a 30 loan. When you take into consideration how rent prices have dramatically increased over the last year, you can get a lot more space for the monthly payment when you buy.