In the last few months, the inventory level has tightened again. All the way down to 1.3 months. This is a historical low for the inventory of homes for sale in the Grand Rapids market.
Although inventory was dwindling, the number of buyers increased with the spring market. The result? Feeding frenzy is probably the most accurate way to describe the competition. If a house is priced right and in good condition, it is common place to see 5-10 offers on one property within three days of hitting the market. Open houses look like assembly lines of people going in and out. It is great to be a seller right now. Unfortunately, it is very difficult to be a home buyer at the moment. The buyers who are winning in extremely competitive situations are usually cash buyers, or buyers who have large down payments if they need financing. It makes it especially tough for first-time buyers trying to enter the market.
New construction has been going strong. Hopefully the new construction will help meet demand and eventually level out the inventory to a healthy level. For the next foreseeable future though, the shortage will remain. Prices continue to increase. The month of May brought a slight uptick in inventory to 1.4 months. An increase of 0.1 doesn't seem too promising, but we'll see where the next few months take us.
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