As we near the end of summer, we wanted to keep you updated on the current landscape of our area’s real estate market.
If you are considering buying or selling, here are some key things to keep in mind: Mortgage rates may rise slightly but should remain near record lows, inventory could increase soon, home buyers will likely continue to favor the suburbs, and urban properties may see a bump in activity. These factors should contribute to a continued hot market as we approach the fall.
Near record-low mortgage interest rates.
Currently, rates in Michigan are running at about 2.95% for 30-year fixed-rate and 2.25% for 15-year fixed-rate. Locking in today’s rates that are still close to record lows can save buyers thousands of dollars over the life of a mortgage. Did you know that a 1% interest rate increase in a 30-year mortgage on a $300,000 home can cost an additional $60,477 over the life of the mortgage? Yikes!
Demand is likely to remain high, so be flexible.
The median days on market is currently 5 days in Kent County, according to MichRIC. Since real estate markets are so localized, some areas within the county may have a higher number of days on market than others. Being flexible with your search can help expand the chances of finding and securing real estate in today’s market.
The difference between getting the home you find and love versus not even getting to a contract can be your pre-approval. You can’t go shopping at the grocery store without your debit, credit card, or cash, right? The same applies with real estate! Work with your lender before viewing homes and get yourself in a strong position to make a competitive and qualified offer.
Price correctly and competitively.
Price is without a doubt the most crucial component of a successful sale. Terms and other factors also come into play–however, having a correct price based on comparable closed sales can put you at a competitive advantage in today’s market climate. The median selling price in Kent County is $252,500, but it’s worth looking at comparable houses in your particular neighborhood. We’re happy to provide that information for you if you would like.
It’s still a seller’s market!
Interest rates have begun to creep slightly higher, but supply still remains extremely low. Now can be an opportune time to make a change if you’re considering downsizing, upsizing, or relocating from one area to another.
Kent County stats reveal more on the state of the market.
Here are some key stats in Kent County (Ada, Alto, Belmont, Byron Center, Caledonia, Cannonsburg, Cedar Springs, Comstock Park, Gowen, Grand Rapids, Grandville, Kent City, Lowell, Rockford, Sand Lake, Sparta and Wyoming): There are 1,946 active listings for single-family homes, condos, and townhomes. The sale-to-list price is 100%, meaning most sellers are getting exactly the price they’re asking for.
Contract terms are favorable.
As the market has continued to accelerate, contract terms have gotten more favorable for sellers. Some of these trends include larger down payments, waived home inspections, and a higher percentage of cash sales that are not contingent upon financing. There may never be as good of a time as right now to sell your home.
Whether you’re considering buying or selling, 616 Realty would love to be a resource for you as someone with expert knowledge of our local real estate landscape and provide you with the insights you need to have an edge.
We are here when you need us and when you’re ready. Hope to hear from you soon and help you navigate this market with confidence!