Yikes…We’re Running Out of Homes to Sell! Real Estate Inventory Levels Reach Record Lows in West Michigan.

A few short years ago, very few real estate agents could envision a time in which the over-riding trend would be a LACK of housing inventory in the the Greater Grand Rapids, MI area.  In January of 2009, distress sales peaked at over 60% of the volume of sales in the area and inventory was very high.  In fact, some buyers were simply tossing out low ball offers to see which one would stick on a home which the seller was desperate to sell.

That was then.  This is now.  Today, recently released sales statistics from the Grand Rapids Association of REALTORS indicate that inventory levels based on Pending Home Sales is down to 3.7 months supply.  Less than 4 months of housing inventory available for sale.  We are definitely in a Seller’s Market.  This is how the landscape looks to local real estate agents.

Rental Market:

If you’re trying to rent a home in West Michigan right now, you may have found out that its challenging.  In fact, just to get a list of home to RENT, you may be asked to pay a FEE of up to $20 to see what’s available.  A situation which few of us could have imagined in the recent past.  The local MLS set up a RENTAL MLS last year which provides listings for sale through local REALTORS.  Listings for Rent tend to cycle through very quickly, however the good news is that if you’re working with a REALTOR, you are not likely to be charged simply to get a list of what’s available for rent.  Feel free to contact us at 616-791-0511 if you need assistance in this area.

Average number of homes available for rent during the month of April on local MLS:  Range between 5-14 homes and condos.

Resale Market:

It’s no surprise given the low inventory levels that housing prices continue to rise.  Over the past 6 months, there has been an increase of 7.1% in home prices from $115,640 in 2011 to an average sales price of $123,849.  The price range with the most activity right now is the middle of the market defined as $100,000 – $160,000.  This is a marked change from the past few years when we saw a huge volume of sales activity in the price brackets below $50,000.  This is an indication that the move up market is coming back.  If you’ve been thinking about putting your home on the market, now may be a good time.

Total Number of Homes for Sale as of date of publication: 6,023

Inventory Level Based on Pending Sales Activity for April:  3.7 Months

Days of the Market

I can remember a time in the not so distant past where some agents were compiling listing agreements with a 2 year listing period.  That’s almost 10X longer than the marriage of one well know Kardashian.  In 2008 and 2009,  the average listing was taking almost a year to sell.  Today, the Average Days on the Market (DOM) is down to 78 days for Residential Properties and 50 days for Multi-family (1-4 unit) properties.  In the month of April alone, there has been an increase of over 20% in sales activity.

Wondering what this might mean for you?

If you’ve been toying with the idea of placing your home on the market, you may want to look at your options again.  To determine what your price point should be, contact us for a free market trends analysis for your area.  This article about setting the right price from the beginning of your home listing is also worth reading.

Photo Credit courtesy of cc license by erix on flickr.

Review raw data on April Housing Stats from the Grand Rapids Association of REALTORS

2 thoughts on “Yikes…We’re Running Out of Homes to Sell! Real Estate Inventory Levels Reach Record Lows in West Michigan.

  1. Pingback: Looking for a Home, Condo or Duplex to Rent in Grand Rapids, MI… « Grand Rapids Real Estate Musings…

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