As we moved through 2025, the Greater Grand Rapids real estate market continued to show its resilience. After years of rapid price growth, low inventory, and shifting interest rates, our local market is settling into a more balanced and sustainable rhythm.

Home Prices: Steady and Sustainable Growth
Home values in Greater Grand Rapids remained strong in 2025. While we are no longer seeing the double-digit appreciation of the early 2020s, prices continue to rise at a healthier, more sustainable pace. This moderation is a positive sign, indicating a market driven by long-term demand rather than short-term volatility. For homeowners, this means equity remains solid. For buyers, it means fewer dramatic price spikes and a more predictable environment for planning and financing.

Inventory: Improving, But Still Tight
Inventory has increased modestly compared to the historic lows we experienced a few years ago, but supply remains limited overall. Relative inventory continues to favor sellers, especially in well-priced homes and popular neighborhoods. While buyers may notice slightly more options than in recent years, competition has not disappeared. Homes that are updated, priced correctly, and well-located are still moving quickly.
Sales Activity: Normalizing After the Frenzy
Home sales in 2025 reflected a more typical pace compared to the surge we saw during the pandemic years. This was not a slowdown, but rather, a return to balance. Buyers are making more deliberate decisions, and sellers are pricing with intention rather than relying on urgency alone. Despite fewer transactions than peak years, total dollar volume remains strong due to higher average sale prices, reinforcing the continued strength of the local housing market.
Interest Rates and Buyer Behavior
Although mortgage rates have crept down from their highest point, generally higher mortgage rates are shaping buyer behavior in meaningful ways. Buyers are more payment-focused, selective, and value-driven. As a result, homes that are overpriced or need significant work are spending more time on the market, while well-prepared homes continue to attract attention. This shift rewards thoughtful pricing, strong presentation, and clear strategy, especially for sellers.
What This Means for Sellers
Sellers in 2025 still held an advantage, but success depended on preparation. Proper pricing and professional marketing were and are more important than ever. While multiple offers still happen, especially at entry-level price points, they are no longer guaranteed.
What This Means for Buyers
Buyers face ongoing competition, but they also have more leverage than in recent years. Opportunities exist for prepared buyers, especially when targeting homes that need cosmetic updates or have been on the market longer.
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The Bottom Line
The Greater Grand Rapids real estate market in 2025 is stable, competitive, and built on strong fundamentals. Whether you are buying or selling, informed decisions and local expertise are key to navigating today’s market successfully.
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​The Greater Grand Rapids real estate market in 2024 was less about momentum and more about adjustment. After several years of rapid price growth, intense competition, and historically low interest rates, the market spent much of 2024 recalibrating. Buyers and sellers alike had to adapt to a new set of expectations, and those who did were rewarded with more thoughtful, strategic outcomes.

A Market Learning to Slow Down
One of the defining characteristics of 2024 was a noticeable slowdown in activity compared to the peak years of the early 2020s. Higher mortgage rates reduced purchasing power for many buyers, and that shift naturally led to fewer total sales. This slowdown, however, did not signal a weakening market. Instead, it marked a return to more normal buying patterns. Buyers took more time, asked more questions, and evaluated homes more carefully. Sellers could no longer rely on urgency alone and had to approach pricing and preparation with intention.

The Grand Rapids real estate market has been incredibly resilient to the change in interest rates. According to Redfin, Grand Rapids placed second in September among the fastest moving metro markets with an average sale time of only 9 days on market. While relative inventory has increased and the pace of the market is not as frenzied as it was the prior two years, inventory still remains low. Prices continue to increase, albeit at a much slower pace. Even though some things have changed, the greater Grand Rapids real estate market still strongly favors sellers.

​The speed at which interest rates increased over the last year and a half​ was shocking. At the end of 2021, interest rates were sitting a little above 3%. In 2022, they started increasing and didn't stop until they hit 8% about a month ago. As rates kept increasing, many buyers fell out of the market and a fear of recession started to permeate the real estate landscape.

The number of houses sold in November 2022 were down by 26% compared to the same month in the previous year. The relative inventory peaked at 1.6 months. That number still represents a seller's market, but the change felt drastic compared to what had been happening the couple of years prior. It seemed like buyers got used to the new normal of interest rates quickly, though. By spring, inventory decreased back down to 0.8 months. Buyers faced an extreme battle for houses all over again.

The real estate market has slowly gained relative inventory over the last few months, but remains tight. The drastic change in interest rates will only further restrain supply since many people are now "stuck" in their homes. They will not move because they want to hang on to that low interest rate. Buying something similar at a higher rate would be a lot more expensive. We are currently sitting at 1.2 months of housing inventory. Interest rates fell back down to around 7.25%. The number of residential sales this year compared to last year is down 15.0%. However, prices have continued to increase and the average sales price is up 5.3% year-to-date.

The greater Grand Rapids real estate market will continue to be a seller's market for the foreseeable future. A lot more inventory is needed before things level out. While I regularly attend economic seminars focused on our local area, forecasting the future of real estate is difficult right now because nothing feels normal. Housing Next of Grand Rapids predicts a housing shortage through 2025. They are actively working to address issues that restrain supply. Dr Alan Beulieu of ITR Economics predicts our market will remain steady and prices will keep appreciating at 3-5% per year for the next few years. That is taking into account the US will likely be in a mild recession in 2024. Overall, the Grand Rapids market has been incredibly resilient to the rising interest rates and remains a strong seller's market.

Reading real estate headlines over the last few months, I've seen many click-bait titles that pander to people's fears about a huge housing crash and global recession. However, if you actually read the articles, it doesn't say anything close to what the headline implies. While the market has cooled this year, there is still high demand for housing and short supply.

As of stats compiled through the end of November, the greater Grand Rapids area is currently sitting at 1.6 months of inventory. See the chart below for the monthly inventory numbers since 2014. Inventory is a measure of whether the market is a buyer or seller's market. This number is determined by figuring how long it would take to sell through the current number of homes on the market at the current rate they are selling, assuming no new houses hit the market. 5-6 months of inventory is considered a balanced market. Although 1.6 months is three times the amount we had last year at the same time, this number still represents low inventory and a market that favors sellers. Homes under $300k are in especially high demand.

When I say slowing, it doesn't mean it's suddenly a buyer's market. Things have only slowed down a little so far. Not every house sells with multiple offers over the weekend, but many still are. More listing price reductions are taking place. Buyers who've had trouble getting offers accepted have more opportunities now. See the chart below for the monthly inventory numbers since 2014. Inventory is a measure of whether the market is a buyer or seller's market. This number is determined by figuring how long it would take to sell through the current number of homes on the market at the current rate they are selling, assuming no new houses hit the market. 5-6 months of inventory is considered a balanced market. We are currently sitting at 0.7 months of inventory as of the end of May. That number should continue to rise over the rest of this year, both due to normal yearly fluctuations, but also relatively as interest rates could go even higher.

Overall, inventory is still very low and multiple offers are still common place. The buyer frenzy seems to have passed its peak though. It will be interesting to see the market shift back to being a little more balanced. We've been used to an extreme sellers market for a long time now. But how high will relative inventory actually go? There is still a lot of demand for housing and the housing shortage is predicted to last for at least a few more years (Business Insider, CBNBC). We may continue to have a seller's market for a while to come, but not to the extent we've seen over the last two years.

The spring real estate market of 2021 combined a frenzy of demand with an already low inventory of homes for sale. Never had the competition to buy a home been more fierce. So what has the greater Grand Rapids real estate market been doing since this past spring? Slowly, but surely, inventory has been notching upward. It is still very much a seller's market, but not the same crazy frenzy this spring brought.

The current inventory level at the end of September was 0.8 months. Refer to the chart below to see the changes in inventory levels over the last seven years. Inventory is a measure of whether the market is a buyer or seller's market. This number is determined by figuring how long it would take to sell through the current number of homes on the market at the current rate they are selling, assuming no new houses hit the market. 5-6 months of inventory is considered a balanced market. In March, April, and May this year, we only had 0.5 months of housing inventory, an extreme sellers market.

I'm expecting the inventory to continue to climb modestly. We will still be low on supply of homes, but relative demand is expected to wane as interest rates creep higher. It will still continue to be a seller's market for the foreseeable future, but the rate at which prices are increasing will slow down. So far in 2021, the average sales price is $293,949, up 14.8% from last year. Interest rates are currently sitting around 3.25 for a 30-year loan and 2.5 for a 15-year. Rates are expected to be a full percentage higher by 2023.

Overall, the inventory of homes has been steadily climbing the last few months and the extreme competition of the spring market has lulled a bit. If you've been a buyer waiting to jump in, now is a better time to enter the market than this past spring due to less competition. If you are a seller, homes are still selling quickly and the demand for housing will remain high over the next few years.

​Related Article- The Pros and Cons of Buying a Home in Winter

Real estate has been all over the news the last couple of months. Due to the pandemic, people spent more time than ever in their homes over the last year. They've had to adapt to working from home and physical distance to work became less important. Many people are wanting more space and privacy. Combine that with super low interest rates, and there is huge demand for housing right now. The Covid policy of mortgage forbearance caused even less homes to hit the market than normal. Mortgage forbearance means payments are temporarily suspended for anyone who cannot pay their mortgage with no threat of foreclosure. We've already been facing inventory issues the last few years, so these factors have only exacerbated our problem.

Could your countertops use some updating? Do you want to make a huge impact for very little cost? Painting your countertops may be the way to go.

On occasion, I have seen countertops that have obviously been painted and do not look good. As with any project, it needs to be done with quality materials and workmanship. There are many different styles to choose from ranging from granite to butcher block. My friends Matt and Kaitie decided to tackle this project in their kitchen and it turned out amazingly well.

Real estate activity often slows surrounding the holiday season and into winter, especially in areas that get a lot of snow. Many people prefer not to move in winter if they can avoid it. There are always buyers out there and our local real estate market is still very hot, but typically the winter months are not as crazy competitive as the rest of the year. Is it really a good idea to buy a home in the winter? It depends on what your personal situation and priorties are, but there are both advantages and disadvantages to buying in the winter season.

This is a guest article written by Paul Denikin with www.dadknowsdiy.com. Paul shares his knowledge to help homeowners tackle projects on their own. Thanks for your contribution, Paul!

​Thinking of sprucing up your home?  With a little elbow grease and creativity, you can add some personal flair to your humble abode.  Not to mention that with a few simple changes, you can increase your home’s value! Here are some great ideas you can tackle yourself, and tips for knowing when you’re getting in too deep.

Power wash your exterior.  Cleaning your siding, pathways, patio, deck and driveway will make your home sparkle.  If you don’t own a power washer you can rent one for the job.  Most large home improvement centers rent them.  If your house is painted, be forewarned you will power wash the paint right off.  While this is a great idea if your intention is to remove the paint, the job of painting your home’s exterior is actually a task best left to a pro.  According to Fixr, the average price to stain or paint a home’s exterior is from $2,530 - $12,200.
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Refresh your entryway.  Brightening up your home’s entryway can give your home’s exterior a facelift.  It’s an important part of your home’s curb appeal and greets your guests, so you want it to reflect positively on you.  If the hardware on your front door is scuffed, scratched, dated and weary, time for an update!  Pull off all the old hardware and give your door a fresh coat of paint.  Then head to the hardware store, select a hardware finish you like, and replace each piece.  If you want to avoid rekeying other doors, purchase new handle sets and deadbolts for each one. 
 
Spruce up your kitchen.  The kitchen is called the heart of the home because it’s such an important room - we eat there, do homework, laugh and argue.  Giving it a refresher is a great way to breathe new life into your home.  Southern Living suggests replacing the cabinet hardware. It’s an easy project and can really make a big impact aesthetically, and with new knobs costing as little as $4, it’s an inexpensive job as well.  If you can turn a screwdriver, you can do this!  Measure the placement of your existing hardware carefully to avoid having to plug or drill holes for your new hardware.  Better yet, remove one of each knob and drawer pull and take them to the store with you to make comparisons.  Selecting an option whose holes match will keep your project simple. 
 
Install a chair rail.  Chair rails add architectural interest to rooms and installation is not terribly complex.  It’s a way to embellish a room, potentially making it appear more spacious and elegant.  Bob Vila notes you could install a chair rail over a weekend.  Consider carefully measuring and asking the hardware store to make your cuts in the railing pieces for you, as it will save some time and effort.  Then you’ll just need to glue and nail them into place, making sure you keep them level as you go.  Finish your rail with sanding and filler as needed, and then stain or paint the rail.  If you plan to paint the room, do so before installing your chair rail. 
 
When not to DIY.  Even for enthusiastic, talented and hardworking homeowners, some DIY projects are best left to pros.  How do you know when to call a professional contractor?  

• Safety first.  Some projects simply aren’t safe for the average homeowner to achieve.  Things like electrical work, removing trees and installing gas lines are all hazardous.  If making a mistake could get you killed, call in a pro. 
• Home damage.  Projects sometimes require specialized skills.  If you lack those skills, doing the projects incorrectly could mean costly damage to your home.  Plumbing is a great example of a home repair arena you should steer clear of without appropriate expertise. 
• Legal permits.  If a project requires a permit to be completed, it’s a clue you should probably leave it to a professional.  The contractor on the permit is responsible for completing the work correctly, and you are likely better off ensuring it’s a pro whose name is on that paperwork. 
• Fence installation. If you’re adding a new fence, you’re best off calling the pros as they’ll understand the permit process and local zoning regulations, along with having the proper tools to get the job done right. Keep in mind that this job will typically run you between $1,650 and $4,000.

 
It’s tool time!  Hopefully you’re inspired to give your home a new look that’s all yours.  There are plenty of projects you can comfortably DIY that make a big impact.  Be creative and give your home a personal touch!  ​