What Trends Are Coming to Grand Rapids Real Estate in 2016?
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Welcome to 2016! Today we are excited to cover the real estate forecast for 2016 and discuss some recent numbers in the Grand Rapids market. We also have a few trends to talk about that you should be aware of. Let’s start off with some numbers from last year.
Our average sales price has increased by 11% in the last year, and is up to $179,000. That is a great, healthy appreciation rate. In addition to this, inventory is down an incredible 23% from last year and the average days on market is down by 34% and is now at a 52 day average. These are both great signs for sellers, and proof that buyers are gobbling up homes at a much quicker rate.
Many first-time buyers are entering the market.
Now we are going to talk about a few trends that we are looking forward to in 2016. We expect these trends to take hold in the next year, and if you’re thinking of buying or selling, they are good things to know.
- The market will normalize. We won’t be seeing the kind of drastic improvement as we did this year, but things will normalize and that’s great for the economy.
- Shifting generational buying trends. Many young, first-time home buyers will enter the market for the first time this year. This is going to boost those lower-end home prices and allow many homeowners to move up into better homes.
- Higher mortgage rates. The Fed will increase interest rates in March of 2016. We know that is coming. We don’t anticipate anything crazy, just a bit of a hike. It won’t affect affordability too much here in Grand Rapids.
- Rent will go up. Rent has gone up every year for a while now, and that’s going to continue this year. It makes it more obvious that buying a home is a good option if you plan on ever doing so.
Those are the trends you should be looking for in 2016. If you have any real estate questions for us at all, don’t hesitate to give us a call or send us an email. We look forward to being in touch!
