Grand Rapids Real Estate Market Report | May 2017

Here Is A Look at the Grand Rapids Real Estate Market Report | May  2017

May 2017 is a Sellers Market!

I hope this Grand Rapids Real Estate Market Report for May 2017 finds you well and in good health. The real estate market is as hot as a firecracker is on the 4th of July. I know I sound like a broken record playing the same song over and over but it is true and the numbers below will prove me correct.

The number of for sale listing was up 3.1% from the previous month. The number of sold listings increased 25% month over month. the number of under contract listings was up 20.2% compared to the previous month. The Months of Inventory based on Closed Sales is 1.3.

Graph showing the sold properties, current inventory and pended properties for the last six months.

Instant Online Home Value Estimator

Looking at buying a home in the Greater Grand Rapids Area? Not sure what area or price range?
  <<< CLICK HERE >>>TO SEE ALL THE HOMES BY ZIP CODE AND PRICE

Picture of 3 houses

Graph showing the Average sold price per Square Footage

Notice the Average Sold Price per Square Footage is up $6 over last month. What does that mean to a home owner that owns a 1000 sqft ranch (of course the house has to be in a good area and it has to be in nice condition). That house potentially appreciated $6000. Try and save $6000 in one month. That My Friends is Called Appreciation.

Graph showing the months of inventory

WOW! This is a crazy low inventory. 1.3  months of inventory is sooo crazy low, if you think back 8-10 years during the Great Recession, the Months of Inventory would be in the years, 24 to 30 months of inventory was not unusual. That’s why I’m saying this is crazy low. Needless to say BUT This is a Sellers Market.Graph showing the Absorption rate based on closed sales.

Chart showing the average appreciation

Looking For a Home In The Greater Grand Rapids Area?

Looking for a 2 bedroom home priced from $150K-$200K?

Looking for a 3 bedroom home priced from $150K-$200K?

Looking for a 4 bedroom home priced from $150K-$200K?

Looking for a 5 bedroom home priced from $150K-$200K?

Looking for a home with a pool from $150K-$200K?

Looking for a Condo In The Greater Grand Rapids Area?

What Does This Data Mean?

Month after Month the sales in the Greater Grand Rapids Area remain STRONG! Inventory of existing properties remains extremely low. With low inventories of existing properties and new construction, this will continue to fuel higher than normal list prices and more times than not higher sales prices. You see many buyers in the market today have been beaten out on their offer even if they had written a full price offer with little to no contingencies. After that happens a couple of times many buyers get frustrated and will bid over asking price and the funny thing is they’re probably competing with the other buyers that lost out on properties that they had submitted offers on. There is no end in sight. Here is a question for you to ponder. What was the unemployment rate in Grand Rapids for July of 2009….17.1% and Kent County was 12.6% for the same time period. Today the unemployment rate in Kent County is 2.4%

The Last 6 Months I’ve Been Saying:

It’s a Sellers Market!  It’s a Sellers Market!  It’s a Sellers Market!  It’s a Sellers Market!  It’s a Sellers Market!

Grand Rapids Real Estate Market Report | April 2017

Here Is A Look at the Grand Rapid Real Estate Market Report | April 2017

Housing Stats: April 2017 continues to be Hot Sellers Market

The number of for sale listings was up 8.6% from the previous month. The number of sold listings decreased 10.6% month over month. The number of under contract listings was up 7.5% compared to the previous month. The Months of Inventory based on Closed Sales is 1.7. 

Grand Rapids Real Estate Market

Month after month the housing market continues to amaze me in how low the existing housing inventory is and the elevated prices. I hope these graphs and numbers will help you see where the Grand Rapids Real Estate Market has been and where it is going.

Stats for house sales in Grand Rapids MI

Average sold Price per square foot

Instant Online Home Value Estimator

Looking at buying a home in the Greater Grand Rapids Area? Not sure what area or price range?
  <<< CLICK HERE >>>TO SEE ALL THE HOMES BY ZIP CODE AND PRICE

Picture of 3 houses

Graph showing the months of inventory in Grand Rapids

The average sold price per square footageGraph showing the absorption rate

The Average For Sale Price is Appreciating*

The Average For Sale Price in April was $320,000, down 0.3% from $321,000 last month.

The Average Sold Price is Appreciating*

The Average Sold Price in April was $212,000, up 4.4% from $203,000 last month.

The Median Sold Price is Neutral*

The Median Sold Price in April was $180,000, up 5.3% from $171,000 last month.

Looking For a Home In The Greater Grand Rapids Area?

Looking for a 2 bedroom home priced from $150K-$200K?

Looking for a 3 bedroom home priced from $150K-$200K?

Looking for a 4 bedroom home priced from $150K-$200K?

Looking for a 5 bedroom home priced from $150K-$200K?

Looking for a home with a pool from $150K-$200K?

Looking for a Condo In The Greater Grand Rapids Area?

What Does This Data Mean?

Month after Month the sales in the Greater Grand Rapids Area remain STRONG! Inventory of existing properties remains extremely low. With low inventories of existing properties and new construction, this will continue to fuel higher than normal list prices and more times than not higher sales prices. You see many buyers in the market today have been beaten out on their offer even if they had written a full price offer with little to no contingencies. After that happens a couple of times many buyers get frustrated and will bid over asking price and the funny thing is they’re probably competing with the other buyers that lost out on properties that they had submitted offers on. There is no end in sight. As long as the economy keeps chugging along and unemployment doesn’t spike back to 8-10%, this recovery will continue. And prices will continue to rise.

The Last 5 Months I’ve Been Saying:

Its a Sellers Market! !  Its a Sellers Market!  Its a Sellers Market!  Its a Sellers Market!  Its a Sellers Market!

 

Home For Sale 1536 Carlton Ave NE Grand Rapids | Presented By Doug Hansen with Five Star Real Estate

Home For Sale 1536 Carlton Ave NE Grand Rapids

Open House Saturday May 6, 1-4 pm


Imagine stepping into your brand new…well almost new home. You need to get into this totally remodeled 3 bedroom and 2 full bathroom home and once inside You’ll call it home. The color palate POPS! It has light gray walls with white trim and beautiful hardwood floors. The living room w/fireplace and 3 bedrooms all have refinished natural wood floors. Both bathrooms (up and downstairs) are brand new. The kitchen looks amazing with new cabinets, flooring, counter tops and back splash. The lower level family room w/fireplace also is trimmed in white with light gray walls. There is a good sized office in the lower level. All the interior doors and the wood trim have been replaced and look fantastic. The main floor has all new windows and new exterior doors. Downstairs you have all new glass block windows. Want more? OK, the furnace and H2O heater are brand new, both garage doors are new, new vinyl siding and shingles on the garage. This house screams “Make this house your home”

Instant Online Home Value Estimator

Not sure of the value of your home? Check it now

Picture of the front of 1536 Carlton for sale

1536 Carlton for sale

1536 Carlton for sale

1536 Carlton for sale

1536 Carlton for sale

Grand Rapids Real Estate Market Report | March 2017

Here is a look at the Grand Rapids Real Estate Market Report | March 2017

Housing Stats: March 2017 continues to be a Seller’s Market!

The number of for sale listings was up 4.5% from the previous month. The number of sold listings increased 41.6% month over month. The number of under contract listings was up 34.2% compared to the previous month. The Months of Inventory based on Closed Sales is 1.5.

Graph showing inventory levels for homes for sale, sold and pending sales

The Average Sold Price per Square Footage was up 11.3% compared to the previous month. The Median Sold Price increased by 6.9% from last month. The Average Sold Price also increased by 10.8% from last month. Based on the 6-month trend, the Average Sold Price trend is “Appreciating” and the Median Sold Price trend is “Neutral”.

Instant Online Home Value Estimator

Looking at buying a home in the Greater Grand Rapids Area? Not sure what area or price range?
  <<< CLICK HERE >>>TO SEE ALL THE HOMES BY ZIP CODE AND PRICE

 

Picture of 3 houses

 Graph showing the days on market

 Graph showing the Average Sold Price per Square Footage

 Graph showing the absorption rate

The Average For Sale Price is Appreciating*

The Average For Sale Price in March was $321,000, up 2.6% from $313,000 last month.

The Average Sold Price is Appreciating*

The Average Sold Price in March was $205,000, down 10.8% from 185,000 last month.

The Median Sold Price is Neutral*

The Median Sold Price in March was $171,000, up 6.9% from $160,000 last month.

Looking For a Home In The Greater Grand Rapids Area?

Looking for a 2 bedroom home priced from $150K-$200K?

Looking for a 3 bedroom home priced from $150K-$200K?

Looking for a 4 bedroom home priced from $150K-$200K?

Looking for a 5 bedroom home priced from $150K-$200K?

Looking for a home with a pool from $150K-$200K?

Looking for a Condo In The Greater Grand Rapids Area?

What Does This Data Mean?

If you look at all the numbers which we will break them down, it does continue to show that the inventory in low and sales are still strong. Ok, here we go into the numbers.

  1. Property sales (sold) for February 2017 were 601 but lower than March 2017 property sales (sold) were 895.
  2. The current inventory (for sale) for February 2017 were 1269 and March 2017 were 1326 homes for sale.
  3. Properties under contract for February 2017 were 907 and March 2017 were 1181 properties under contract.
  4. The Average for Sale Price is up $8000 over February 2017. The Average Sold Price is up $20,000 over February 2017. The Median Sales Price is up $11,000 over last month.
  5. Lastly, the Absorption Rate based on Closed Sales. March 2017 Absorption Rate based on closed sales of 67.5 was up 35.5% compared to last month

So my take on the above numbers is simple, there are more properties selling than new homes coming on the market for sale. With this scenario, prices will continue to be elevated and there is no relief in sight. So if you are thinking of selling your home now is the perfect storm if you’re a home seller. You’ll realize a higher sales price and that translates to more money in your pocket.

Its a Sellers Market! !  Its a Sellers Market!  Its a Sellers Market!  Its a Sellers Market!  Its a Sellers Market!

Grand Rapids Real Estate Market Report | February 2017

Here is a look at the Grand Rapids Real Estate Market for  February 2017.

February 2017 continues to be a SELLERS MARKET.

February 2017 continued to be a sellers market due to one very simple fact…there is a shortage of inventory (homes for sale). Once we look at last months numbers that will be as clear as night and day.  The number of for sale listings (active) was down 7.3% from the previous month. The number of sold listings decreased 17.7% month over month. The number of under contract listings was up 9.7% compared to the previous month. The Months of Inventory based on Closed Sales is 2.1.

Its a graph that shows sold, pending, active data

Wondering what your home might be worth?

Looking at buying a home in the Greater Grand Rapids Area? Not sure what area or price range?
  <<< CLICK HERE >>>TO SEE ALL THE HOMES BY ZIP CODE AND PRICE

 

Picture of 3 houses

Graph showing the days on market

Graph showing the Average Sold Price per Square Footage, Days on Market and Sold/Original List Price

Graph showing the absorption rate

The Average For Sale Price is Appreciating*

The Average For Sale Price in February was $313,000, up 5% from $298,000 last month.

The Average Sold Price is Depreciating*

The Average Sold Price in February was $184,000, down 2.6% from $189,000 last month.

The Median Sold Price is Neutral*

The Median Sold Price in February was $160,000, up 1.9% from $157,000 last month.

Looking For a Home In The Greater Grand Rapids Area?

Looking for a 2 bedroom home priced from $150K-$200K?

Looking for a 3 bedroom home priced from $150K-$200K?

Looking for a 4 bedroom home priced from $150K-$200K?

Looking for a 5 bedroom home priced from $150K-$200K?

Looking for a home with a pool from $150K-$200K?

Looking for a Condo In The Greater Grand Rapids Area?

Two Bedroom Condos For Sale Kent and Ottawa Counties $150K-$200K

Three Bedroom Condos for Sale In Kent and Ottawa Counties $150-$200K

Downtown Grand Rapids Condos For Sale

What does this data mean

 My Commentary

My thoughts and commentary are simply this. There is still a low inventory of properties on the market and I think it will continue to stay that way for years to come. With the low inventory, homeowners are selling at record prices. The Average Sold Price for February was $184,000. You must ask yourself if you are buying a home, “When are prices coming down?” The reasons are simple and complex at the same time. A number of home builders were run out of the market during the Great Recession. That mean there are few home builders to satisfy new home demands.  West Michigan is growing up. The Grand Rapids Metro area now has over 1 million people. If you don’t believe me, how often does a Trader Joes go into a small market…they don’t. The February Absorption Rate based on closed sales was 47.4% and that is still a huge sellers market. Check out The Grand Rapids Real Estate Market Report | January 2017 and compare February 2017 to last months number.

IT’S A SELLERS MARKET! IT’S A SELLERS MARKET! IT’S A SELLERS MARKET! IT’S A SELLERS MARKET! IT’S A SELLERS MARKET!

If you are thinking of selling and want 25+ years of experience working for you, please call me at 616-485-8955.

Thank you

Doug Hansen

Listing in the Winter Attracts More Serious Buyers For Your Grand Rapids Home For Sale

Listing in the Winter Attracts More Serious Buyers | MyKCM

A recent study of more than 7 million home sales over the past four years revealed that the season in which a home is listed may be able to shed some light on the likelihood that the home will sell for more than asking price, as well as how quickly the sale will close.

A House SOLD in your Neighborhood! This will affect the Value of Your Home! Find out What your Home is Worth NOW!

Thinking Of Buying or Selling? Looking For a Professional Realtor? That Gets Professional Results!

Call or text Doug Hansen at 616-485-8955.

 

Browse All 3 Bedroom House For Sale In The Grand Rapids Metro Area

 

Picture of 3 houses

 

It’s no surprise that listing a home for sale during the spring saw the largest return, as the spring is traditionally the busiest season for real estate. What is surprising, though, is that listing during the winter came in second!

“Among spring listings, 18.7 percent of homes fetched above asking, with winter listings not far behind at 17.5 percent. While 48.0 percent of homes listed in spring sold within 30 days, 46.2 percent of homes in winter did the same.”

The study goes on to say that:

“Buyers [in the winter] often need to move, so they’re much less likely to make a lowball offer and they’ll often want to close quickly — two things that can make the sale much smoother.” 

Bottom Line

If you are debating listing your home for sale in 2017, keep in mind that the spring is when most other homeowners will decide to list their homes as well. Listing your home this winter will ensure that you have the best exposure to the serious buyers who are out looking now!

The study used the astronomical seasons to determine which season the listing date fell into (Winter: Dec. 21 – Mar. 20; Spring: Mar. 21 – June 20; Summer: June 21 – Sept 21; Autumn: Sept 21 – Dec. 20).

Grand Rapids Real Estate Market Report | January 2017

Here is a look at the Grand Rapids Real Estate Market for January 2017.

January 2017 continues to be a Sellers Market.

The following numbers will bear out this point. The number of for sale listings was down 11.9% from the previous month. The number of sold listings decreased 31.1% month over month. The number of under contract listings was up 27% compared to the previous month. The Months of Inventory based on Closed Sales is 2.

The Average Sold Price per Square Footage was the same as compared to the previous month. The Median Sold Price decreased by 2.5% from last month. The Average Sold Price also increased by 1.6% from last month. Based on the 6-month trend, the Average Sold Price trend is “Neutral” and the Median Sold Price trend is “Depreciating”.

The Average Days on Market showed an upward trend. The ratio of Sold Price vs. Original List Price is 96%.

Graph showing properties sold, current inventory and pending sales

So lets break down the above numbers.

Property Sales (Sold)

Typically it will take 30-45 days to go from an accepted purchase agreement to the close of the transaction. A number of these closed transactions were written in November 2016 and closed in January 2017. A number of January 2017 closing were written in December 2016. Both December and January are typically slower months in real estate for obvious reasons. That could be part of the reason that closed sales for January were down 31.1%.

Current Inventory (For Sale)

Homeowners are less likely to put their house on the market in the months of December and January. This will account for the 11.9% downturn in homes for sale.

Property Under Contract (Pended)

Who says houses don’t sell in December and January? There was a 27% increase in the number of properties that went under contract in January vs December.

The Average Days on Market (DOM).

The average days on the market (DOM) shows how many days the average property is on the market before it sells. The DOM for January 2017 was 41 up 20.6% from 34 days last month.

The Average Sold Price per Square Footage is Depreciating.graph shows the average price per sqft (sold)

The Average Sold Price per Square Footage is a great indicator for the direction of property values. Since Median Sold Price and Average Sold Price can be impacted by the ‘mix’ of high or low-end properties in the market, the Average Sold Price per Square Footage is a more normalized indicator on the direction of property values. The January 2017 Average Sold Price per Square Footage of $73 was the same as last month.

My Commentary

If you’re thinking of selling but want to wait until spring. You can but look at the above numbers. The current number of For Sale properties is down. That means less competition for your property and could put more money in your pocket. If you were hurt in the recession and think you’re still underwater with your mortgage, think again! I’ll bet you have positive equity and didn’t even know it. Check out The Grand Rapids Real Estate Market Report | December 2016 and compare the numbers.

Wondering what your home might be worth?

Looking at buying a home in the Greater Grand Rapids Area? Not sure what area or price range?

  <<< CLICK HERE >>>TO SEE ALL THE HOMES BY ZIP CODE AND PRICE

 

Picture of 3 houses

 

 

Looking for a 2 bedroom home priced from $150K-$200K?

Looking for a 3 bedroom home priced from $150K-$200K?

Looking for a 4 bedroom home priced from $150K-$200K?

Looking for a 5 bedroom home priced from $150K-$200K?

Looking for a home with a pool from $150K-$200K?

Lastly, lets look at the Absorption Rate…Say What?

Grand Rapids Real Estate Market Report Absorption Rate

I Have Three Words To Finish The Grand Rapids Real Estate Market Report. Its a…

SELLERS MARKET! SELLERS MARKET! SELLERS MARKET!

 

Buyers Are Searching For Your Grand Rapids House

Buyers Are Searching For Your House | MyKCM

The most recent Pending Homes Sales Index from the National Association of Realtors revealed a slight bump in contracts with an increase of 1.6% in December. This news comes as existing home sales are also forecasted to be on pace for 5.54 million in 2017, a 1.7% increase over 2016, which was the best year for sales in a decade.

A House SOLD in your Neighborhood! This will affect the Value of Your Home! Find out What your Home is Worth NOW!

The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed.

Thinking Of Buying or Selling? Looking For a Professional Realtor? That Gets Professional Results!

Call or text Doug Hansen at 616-485-8955.

Browse All 3 Bedroom House For Sale In The Grand Rapids Metro Area

Picture of 3 houses

 

According to NAR’s Chief Economist, Lawrence Yun,

Pending sales bounded last month as enough buyers fended off rising mortgage rates and alarmingly low inventory levels to sign a contract.

So, what’s the problem?

Buyers are searching for existing homes, but supply is not keeping up with their demand!

Yun went on to explain,

The main storyline in the early months of 2017 will be if supply can meaningfully increase to keep price growth at a moderate enough level for households to absorb higher borrowing cost. Sales will struggle to build on last year’s strong pace if inventory conditions don’t improve.” (emphasis added)

Bottom Line

Buyers are out in force right now! If you are considering selling your home this year, the early months of 2017 will be your best option. Let’s get together to discuss how you can capitalize on current market conditions.

 

Thinking of Making an Offer

Thinking of Making an Offer? 4 Tips for Success

Thinking of Making an Offer? 4 Tips for Success | MyKCM

Browse All The 3 Bedroom Houses For Sale In Kent County $150-$200K

Picture of 3 houses

So you’ve been searching for that perfect house to call a ‘home,’ and you finally found one! The price is right, and in such a competitive market that you want to make sure you make a good offer so that you can guarantee your dream of making this house yours comes true!

Freddie Mac covered “4 Tips for Making an Offer” in their latest Executive Perspective. Here are the 4 Tips they covered along with some additional information for your consideration:

1. Understand How Much You Can Afford

“While it’s not nearly as fun as house hunting, fully understanding your finances is critical in making an offer.”

This ‘tip’ or ‘step’ really should take place before you start your home search process.

As we’ve mentioned before, getting pre-approved is one of many steps that will show home sellers that you are serious about buying, and will allow you to make your offer with the confidence of knowing that you have already been approved for a mortgage for that amount. You will also need to know if you are prepared to make any repairs that may need to be made to the house (ex: new roof, new furnace).

2. Act Fast

“Even though there are fewer investors, the inventory of homes for sale is also low and competition for housing continues to heat up in many parts of the country.”

According to the latest Existing Home Sales Report, the inventory of homes for sale is currently at a 3.6-month supply; This is well below the 6-month supply that is needed for a ‘normal’ market. Buyer demand has continued to outpace the supply of homes for sale, causing buyers to compete with each other for their dream homes.

Make sure that as soon as you decide that you want to make an offer, you work with your agent to present it as soon as possible.

3. Make a Solid Offer

Freddie Mac offers this advice to help make your offer the strongest it can be:

“Your strongest offer will be comparable with other sales and listings in the neighborhood. A licensed real estate agent active in the neighborhoods you are considering will be instrumental in helping you put in a solid offer based on their experience and other key considerations such as recent sales of similar homes, the condition of the house and what you can afford.”

Consider ways of making your offer stand out! Many buyers write a personal letter to the seller letting them know how much they would love to be the new homeowners. Your agent will be able to help you figure out if there are any other ways your offer could stand out above the rest.

4. Be Prepared to Negotiate

“It’s likely that you’ll get at least one counteroffer from the sellers so be prepared. The two things most likely to be negotiated are the selling price and closing date. Given that, you’ll be glad you did your homework first to understand how much you can afford.

Your agent will also be key in the negotiation process, giving you guidance on the counteroffer and making sure that the agreed-to contract terms are met.”

If your offer is approved, Freddie Mac urges you to “always get an independent home inspection, so you know the true condition of the home.” If the inspection uncovers undisclosed problems or issues, you can discuss any repairs that may need to be made, with the seller, or cancel the contract.

Bottom Line 

Whether buying your first home or your fifth, having a local professional on your side who is an expert in their market is your best bet to make sure the process goes smoothly. Happy House Hunting!

Grand Rapids Real Estate Market Report | December 2016

Here is a look at the Grand Rapids Real Estate Market for December 2016.

December 2016 was a Seller” Market. The number of for sale listings was down 8.9% from the previous month. The number of sold listings decreased 3.1% month over month. The number of under contract listings (pending) was down 31.8% compared to the previous month. The Months of Inventory based on Closed Sales is 2.7. With a 2.7 Months of Inventory based on Closed Sales, it is still considered a Seller’s Market.

The Average Sold Price per Square Footage was down 6.1% compared to the previous month. The Median Sold Price increased by 0.7% from last month. The Average Sold Price also decreased by 6.7% from last month. Based on the 6-month trend, the Average Sold Price trend is “Depreciating” and the Median Sold Price trend is “Neutral”.

The Average Days on Market showed an upward trend. The ratio of Sold Price vs. Original List Price is 95%.Graph showing Property sales, Current inventory and Properties under contract.

Here’s A Look at the Average Sold Price per Square Footage

Graph showing the Average Sold Price per Square Footage

December saw 777 single family homes sold and closed, compared to 780 homes sold in December 2015. These properties sold on average at $62 per square foot and that was down 6.1% for $66 last month. The median sales price for December was $168,000, down 6.7% from $180,00 last month.

The median sales price for December was $168,000, down 6.7% from $180,00 last month.

Here is a look at Houses for Sale In Kent and Ottawa Counties priced in the Median sales price.

3 Bedroom Houses for sale in Kent and Ottawa Counties. Priced $150K to $200K

4 Bedroom Houses for sale in kent and Ottawa Counties. Priced $150K to $200K

5 Bedroom Houses for sale in Kent and Ottawa Counties. Priced $150K to $200K

Kent and Ottawa Counties Homes with a Pool:

A look at the Condo Market

2 Bedroom Condos for sale In Kent and Ottawa Counties

3 Bedroom Condos for sale In Kent and Ottawa Counties

Downtown Grand Rapids Condos For Sale

What does this mean if you are buying a house in Greater Grand Rapids?

If you wait until you think you’re ready it may be too late. Interest Rates may have risen back into the 5-6% range. Look at the chart below and see the difference at how mortgage interest rates can affect your payment and or that price of the home you can afford.Comparing interest rates and how much house you can afford

What does this mean if you are selling a house in Greater Grand Rapids? SELL! SELL! SELL!

With 2.7 months of inventory, you’ll find today’s Greater Grand Rapids Real Estate Market to be a SELLERS MARKET.

Wondering what your home might be worth?

Find out instantly with our 15 second home value calculator