Over the last three years of giving market updates, I am starting to sound like a broken record. The real estate story of Grand Rapids, MI in 2015 was quite similar to 2014 and 2013. The inventory of homes for sale has remained low, and prices have been steadily increasing. It has been a great market for sellers and a frustratingly competitive market among buyers. Interest rates went up and down a bit throughout the year. Right now they are sitting around 4.0% for a 30 year loan, which is still quite low when you look at the history of interest rates.
It is suspected that sales are being constrained because of the limited inventory. Year-to-date, new listings are down by 4.3%, and the number of housing units sold is up 5.4%. The average sales price is up 8.9% this year, growing from $163,171 in 2014 to $177,767 in 2015. Due to increasing sales prices, the volume of home sales in dollars is up by almost 15%. The most popular price range is $100-160k.
Economic experts are saying more inventory in 2016 and hopefully a healthy, balanced market. Funny thing is, the "experts" said that last year too. I'll believe it when I see it. For now, the Grand Rapids real estate market looks much like it has over the last couple years. Inventory is low, prices are increasing, and it is a seller's market.
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