It’s that time again in West Michigan—colorful leaves, pumpkins, and apple cider—and time to get out the jackets. Like the weather, the West Michigan real estate market has cooled down just a touch.
According to Forbes, “Most experts do not expect a housing market crash in 2023 since many homeowners have built up significant equity in their homes. The issue is primarily an affordability crisis. High-interest rates and inflated home values have made purchasing a home challenging for first-time homebuyers.”
Unfortunately for buyers, interest rates are at around 8%. That is the highest they have been in a generation. Fortunately, if you are in the market for a home right now, there are some ways to curb that rate and find a mortgage that works for you.
As for West Michigan, Kent county specifically, here’s what we know according to the Greater Region Alliance of Realtors (GRAR) September 2023 report.
- Inventory on residential properties continues to go down (-13% from 2022).
- Inventory on multi-family homes is up by 17.2%.
- Sales for residential homes were down in August -18.3% from this time last year, overall year-to-date, they are down 10.9%.
- Multi-family home sales on the other hand weren’t cooling off as much and were up in August by 8% compared to August 2022.
- Land sales were down -13.6% as well.
- As for the year-to-date sales in all categories, each has experienced a decrease of approximately -8-16% (Residential -15.6%. Multifamily -16.7%, Vacant Land -6.8%).
- The average home sale increased slightly, up 3.8%, from this time last year. The prices for homes aren’t expected to fall. They will be increasing at a much lower percentage than what we have seen over the past couple of years which is good for buyers, but not too bad for seller’s either.
- Last August the home average was $365,588 while this August the average home sold for $379,466. Home prices were up 2.6% overall this July from last July.
Inventory still isn’t meeting demand in Kent County which means it is still a seller’s market. Of course, home buying seems to taper off every year as we get closer to Halloween and the winter months approach. Real estate forecasters believe it will be no different this year.
But, when you want to find your dream home and settle in, any month is the right month. If you have any real estate needs, 616 REALTY has answers to your questions and the down-home, local agents ready to help you sell your property or find your idyllic home or investment property. Contact us today!