2021 FALL REAL ESTATE UPDATE brought to you by John Rice REALTOR Berkshire Hathaway HomeServices
Demand for Vacation Homes Is Still Strong
The pandemic created a tremendous interest in vacation homes across the country. Throughout the last year, many people purchased second homes as a safe getaway from the challenges of the health crisis. With many professionals working from home and many students taking classes remotely, it made sense to see a migration away from cities and into counties with more vacation destinations.
The 2021 Vacation Home Counties Report from the National Association of Realtors (NAR) shows that this increase in vacation home sales continues in 2021. The report examines sales in counties where “vacant seasonal, occasional, or recreational use housing account for at least 20% of the housing stock” and compares that data to the overall residential market.
Their findings show:
- Vacation home sales rose by 16.4% to 310,600 in 2020, outpacing the 5.6% growth in total existing-home sales.
- Vacation home sales are up 57.2% year-over-year during January-April 2021 compared to the 20% year-over-year change in total existing-home sales.
- Home prices rose more in vacation home counties – the median existing price rose by 14.2% in vacation home counties, compared to 10.1% in non-vacation home counties.
This coincides with data released by Zelman & Associates on the increase in sales of second homes throughout the country last year.
As the data above shows, there is still high demand for second getaway homes in 2021 even as the pandemic winds down. While we may see a rise in second-home sellers as life returns to normal, ongoing low supply and high demand will continue to provide those sellers with a good return on their investment.
If you’re one of the many people who purchased a vacation home during the pandemic, you’re likely wondering what this means for you. If you’re considering selling that home as life returns to normal, you have options. There are still plenty of buyers in the market. If, on the other hand, you want to keep your second home, enjoy it! Current market conditions show that it’s a good ongoing investment.
Source: Michigan Real Estate Updates
Exquisite one of a kind contemporary home on 10 acres. Featuring soaring cathedral ceilings, showcase granite faced fireplace, main floor master, main floor laundry, 6 garage stalls, theater room, hot tub, huge 48′ x 40′ pole barn with 60′ x 16′ RV stall with 14′ door. Remodeled by award winning builder Mike Schaap this home features timeless quality, all brick exterior, metal roof, and full automation (provided by local home automation experts Bekins.) The gourmet kitchen features all granite counter tops, Miele appliances, quality custom cabinets offering every built-in and storage option needed to masterfully entertain. The dedicated office space and 2 gym areas – both a TRX area and a workout room – show this house has what is needed to thrive in today’s world. The sound proofed theater room, featured in Audio Video Interiors magazine, is equipped with 1 touch fully automated movie mode, tiered seating and incredible surround sound. Roughly 1/3 of the acreage is wooded, offering a beautiful mix of hardwood and evergreen on the grounds. This home is a must see!
Minutes from all your favorite hang-out spots, East Grand Rapids schools, beautifully updated and ready for you. This 4 bedroom 2 bath home features upstairs laundry, a great backyard, brand new deck, updated kitchen, new furnace, new water heater, new AC, refinished hardwood floors, updated electrical….the list goes on! Come see this house today!
Sellers Are Ready To Enter the Housing Market
One of the biggest questions in real estate today is, “When will sellers return to the housing market?” An ongoing shortage of home supply has created a hyper-competitive environment for hopeful buyers, leading to the ultimate sellers’ market. However, as the economy continues to improve and more people get vaccinated, more sellers may finally be in sight.
The Home Purchase Sentiment Index (HPSI) by Fannie Mae recently noted the percentage of consumer respondents who say it’s a good time to sell a home increased from 61% to 67%. Doug Duncan, Senior Vice President and Chief Economist at Fannie Mae, indicates:
“Consumer positivity regarding home-selling conditions nearly matched its all-time high.” (See graph below):
Fannie Mae isn’t the only expert group noticing a rise in the percentage of people thinking about selling. George Ratiu, Senior Economist at realtor.com, shares:
“The results of a realtor.com survey . . . showed that one-in-ten homeowners plans to sell this year, with 63 percent of those, looking to list in the next 6 months. Just as encouragingly, close to two-thirds of sellers plan to sell their homes at prices under $350,000, which would offer a tremendous boost to affordable housing for first-time buyers.”
If you’re considering selling your house, don’t wait for more competition to pop up in your neighborhood. Let’s connect today to explore the benefits of selling your house now before more homes come to the market.
Source: Michigan Real Estate Updates
Forest Hills Central Schools! Step into this custom designed, 4 bedroom home featuring main floor master with 2 offices on the main floor, 3 additional generous sized bedrooms (upstairs,) large oversized and extra deep attached garage with attached shop and open storage areas, lower level offering room for a future rec room or exercise area and loads of storage. Be surrounded by beautiful hardwoods and evergreens all within minutes of Cascade and Ada. Shown by appointment only. Schedule your tour today!
Berkshire Hathaway HomeServices has awarded John Rice the Chairman’s Circle Gold Award for 2020 production. The award is presented to top performing agents that place within the top 2% of Berkshire Hathaway Agents Nationwide.
Now in his 19th year, John Rice passionately assists Michigan residents in their housing needs. Berkshire Hathaway HomeServices Michigan Real Estate is ranked as one of the top producing brokerage firms in the nation.
Excellent home with updated bath, attached garage, finished basement, fenced in backyard and it backs right up to a park! Only minutes to downtown Grand Rapids. Walk out your door and enjoy miles of sidewalks and easy access to everyday amenities. Updated paint colors reflect the wonderful natural light through the newer windows. Attached garage and a large fenced back yard with shed and fire pit. Amazing finished basement with built in bar, bedroom, rec room, storage and more – its perfect for home office, home theater and home gym! Move in condition and excellent value. This home is a must see! Seller has directed all offers be held through Monday March 15 12PM.
Looking for the perfect lot to build your DREAM HOME? Want acreage and beautiful barn and a great place to call home? This is it! This is the perfect way to obtain 2.8 acres, and a barn plus it currently has 1971 mobile on it. Beautifully remodeled and added onto, this 1971 mobile home is built on a permanent chassis. Thinking of building new? Check out the large open vacant space on the north side of the property! NOTE: Because this home is built on a permanent chassis and built in 1971. Financing needs to be CASH or most likely a portfolio or construction loan with 30% down and credit score requirements.
Forest Hill Schools – Private Thornapple River frontage. This gorgeous Town & Country cedar home is surrounded by the natural beauty of hardwoods. Located on the open 6 mile stretch of the Thornapple River (all sports.) This home offers the best of rustic-lux. With soaring vaulted plank ceilings, stone fireplace, majestic views out every window, and quality finishes throughout – every inch breathes the essence of home. The main floor master with luxuriously appointed on-suite, the additional bedrooms, finished garage loft space, and walk-out lower level each offer custom touches combining form, function and fun. Experience the peace of this location while appreciating its close proximity to everyday amenities such as shopping, dining, entertainment, and more.