Market Update- Spring 2014

So far 2014 has been a crazy year. The real estate market cooled a bit this winter due to the massive amount of snow that dumped on us.  It was definitely the worst winter I’ve seen in my lifetime.  Sales are down this year so far by 23% compared to the same period last year.  Although sales are down, the market is still hot overall and prices have continued to go up.  The main reason for the decline in sales is there are not enough homes for sale.  Listings are down by 27% YTD.  There are a lot of buyers out there that are ready, willing, and able to buy, but cannot find the right property.

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If you’ve read my blog before, you’ve probably heard me talk about the term “inventory.”  Inventory of homes for sale is measured by determining how long it would take to sell all current homes for sale if no new listings came to the market, based on the current rate of how many people are buying.  A normal market is considered to be an inventory of 6-6.5 months.  Back in 2008, we had a whopping 13-14 months.  As of the end of March, Greater Grand Rapids is sitting at a mere 2.5 months of inventory!  This is so ridiculously low, it’s almost unbelievable.  I have spoken to agents who have been in the business for over 30 years and have never seen the market like this.

This is a unique time for sellers.  There is so much pent up demand and so little to choose from, sellers have a lot of power in this market.