March came in like a lion in Grand Rapids this year weather-wise, but even the recent warm-up hasn’t fueled the volume of inventory in the spring real estate market. That’s a fact the Katie-K real estate team can put in your favor if you’re even remotely considering selling your home.
“The supply and demand ratios are anything but parallel. It is most definitely a seller’s market. Anyone thinking about moving in the next two to three years should be listing right now if they want to capture top dollar,” said Realtor Katie Karczewski, principal of Keller Williams’ Katie-K Team.
Katie and her team have seen several homes sell like hotcakes, with multiple offers and selling prices above list. While it makes it challenging for home-buyers in Grand Rapids, the hot market earned the city the designation of a 2016 “Market to Watch.” Katie’s team can help buyers be ready for fast response in the tight market, and can help sellers get top dollar. It’s an especially lucrative time to downsize.
Higher-end homes in East Grand Rapids, Ada and other upmarket Greater Grand Rapids areas have enjoyed very strong gains over the last year, Katie said. Between February 2015 and February 2016, the sold properties $500,000 and above are up 28%. The pending properties for the same month are up 8.3% year-over-year. The active properties in those parameters are 4.91% of the market.
“Interest rates remain at a historical low. With an election year coming up we don’t know what will happen with rates,” Katie said, explaining the continued high demand and one of the reason’s she feels the 2016 market is optimal.
Last year, Grand Rapids Metro was a consistent outperformer with the latest growth rate of 3.8 percent, according to the NAR. The growth rate reflects the city’s burgeoning reputation as a great place to live, work, and visit. Grand Rapids’ latest fete was its inclusion as #20 on the New York Times’ “52 Places to Visit in 2016” list.
Grand Rapids Real Estate Stats from GRAR
For year-to-date new listings, residential has seen only marginal growth over 2015 with a 0.2% increase. As of March 10th, 2016, there are 1,668 residential listings.
So far this year, residential closed sales are up 18% (1,368), and sales volume — which is based on selling price — has risen by 28.5% ($236,598,996.)
Nationwide Optimism About Housing Market
According to the National Association of Realtors (NAR) over three-quarters of surveyed households would purchase a single-family home if they were to buy in the next six months, and 79 percent of renters would choose to buy outside of an urban area, according to the second installment of the National Association of Realtors® new quarterly consumer survey released March 15.
In NAR’s first quarter Housing Opportunities and Market Experience (HOME) survey, respondents were asked about their confidence in the U.S. economy and various questions about their housing expectations and preferences, including a question on if they were to purchase a house in the next six months, what type of home and in what area would they choose to buy.
The survey data reveals an overwhelming consumer preference for single-family homes in suburban areas. Most current homeowners (85 percent) and 75 percent of renters said they would purchase a single-family home, while only 15 percent of homeowners and 21 percent of renters said that would buy in an urban area.
If Grand Rapids reflects national consumer trends, that’s great news for suburban sellers.
If you’d like a Free Market Assessment from the Katie-K Team, Contact Us by email or call 616.575.0119.