Market Update November 2020

Can the market keep up its pace in the seller’s favor? And will this cause a crash like 2008? Is a turnover in government going to cause a crash?

We continue to get these questions over and over from people, and the bottom line is that no one has the answers. What we can do is let you know what is happening right now in our real estate market. Almost every home that we are selling here in Grand Rapids and the surrounding areas are going above list price with multiple offers. But why? Why does that keep happening? Well, let’s dive into it.

What we do know is that just as predicted from real estate experts and advisors earlier in the year that we would have a V-shaped recovery, which means that the market drastically dropped and slowed down when the pandemic hit, but they predicted that once things got back to normal, or once our “new normal” set in, that the housing market would recover. As seen here from this graph from the “Housing Market Recovery Index” we see that it has. This index looks at 4 components of the market 1. Demand 2. Supply 3. Price and 4. Time on Market. The index is showing that we are now exceeding levels prior to the pandemic. Data from the Mortgage Bankers Association, Zillow, and The National Association of Realtors shows that leading indicators that determine a strong market like showing times, purchase applications, pending sales, existing home sales, new home sales are all up. This indicates we are in a very strong market. Also, factors like Inventory levels for both traditional inventory and new construction are down, we have limited inventory, which again is an indication of a strong market in the favor of sellers.

So although we cannot predict what will happen in the future, just as anyone else can’t, what we do know is that right now, we are seeing a very strong real estate market. Feel free to reach out to us at no cost or risk for a hassle-free strategy session. We are looking forward to hearing from you and as always make it a great home selling and buying day!!!