LISA VANDERLOO
  • Home
  • Property Search
  • Sellers
    • Seller Services
    • The Home Selling Process
    • What Is My House Worth?
    • Video Marketing
  • Buyers
    • Buyer Services
    • The Home Buying Process
    • Why Use a Buyer's Agent?
  • Blog
    • For Buyers
    • For Sellers
    • Home Improvement
    • Finance
    • Local Events & Places
  • About
    • Meet Lisa
    • Contact
    • Testimonials

The Real Estate Market is Finally Starting to Shift- Grand Rapids Summer 2022

6/20/2022

0 Comments

 
Picture
Many economists were speculating the market shift to take place last fall. However, interest rates remained low and demand for housing was still ridiculously high at the beginning of 2022. Starting in January, interest rates started to creep up quickly and didn't stop. After hovering around 3.0% for most of 2021, rates went all the way up to almost 6% in the matter of a few months. 4% interest rates didn't seem to faze buyers, but once rates got over 5%, they took notice. Some buyers fell out of the market that were only motivated by super low rates. Others adjusted their budgets to account for the rate hikes. The result has been a slowing of the real estate market over the last couple of months.

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.
Picture
0 Comments



Leave a Reply.

    Lisa VanderLoo

    Great info on everything real estate.

    RSS Feed

    Categories

    All
    Fair Housing
    Finance
    Funny
    Home Buyers
    Home Improvement
    Home Sellers
    Local Places/Events
    Market Update
    Renting

    Archives

    November 2023
    December 2022
    June 2022
    October 2021
    May 2021
    December 2020
    November 2020
    October 2020
    September 2020
    July 2020
    April 2020
    August 2019
    May 2019
    April 2019
    September 2018
    January 2018
    September 2017
    August 2017
    April 2017
    March 2017
    February 2017
    December 2016
    September 2016
    June 2016
    February 2016
    January 2016
    July 2015
    May 2015
    February 2015
    January 2015
    November 2014
    October 2014
    August 2014
    July 2014
    June 2014
    April 2014
    March 2014
    February 2014
    March 2013
    August 2012

Picture
© COPYRIGHT 2020. ALL RIGHTS RESERVED.
  • Home
  • Property Search
  • Sellers
    • Seller Services
    • The Home Selling Process
    • What Is My House Worth?
    • Video Marketing
  • Buyers
    • Buyer Services
    • The Home Buying Process
    • Why Use a Buyer's Agent?
  • Blog
    • For Buyers
    • For Sellers
    • Home Improvement
    • Finance
    • Local Events & Places
  • About
    • Meet Lisa
    • Contact
    • Testimonials