The real estate story of Grand Rapids, MI in 2014 is quite similar to 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 competitive market among buyers. Interest rates have remained low.
It is suspected that sales are slightly constrained because of the limited inventory. Year-to-date, new listings are down by 7.4%, and the number of housing units sold is up 2.8%. The average sales price is up 6.7% this year, growing from $152,833 in 2013 to $163,171 in 2014. Due to increasing sales prices, the volume of home sales is up by almost 10%.
Economic experts are saying more inventory in 2015 and hopefully a healthy, balanced market. Some lending restrictions are lightening that will allow more first-time home buyers to enter the market. First-time buyers are expected to make a big comeback after being at an all time low number in 2014. Interest rates are expected to rise to around 5% by the end of 2015.
The last 10 years of real estate in the US has been quite a roller coaster of extreme highs and lows. With the economy improving, continued responsible lending, and the growth of Grand Rapids, I am predicting that the next 10 years are going to be wonderful for this area. Grand Rapids is going to grow and bring many opportunities with that growth.
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