East Hills Gem! This incredible 3 Bedroom 2.5 bath, built in 2018 offers a rare opportunity to have all the amazing amenities this area provides – yet new construction! From the minute you walk in – you will love the design, the finishes, the up-to-date colors – MOVE IN READY! Walk to all of the amazing shops, restaurants and more! Even enjoy the neighborhood community garden right across the street! The main floor offers an open floor plan with phenomenal kitchen, designer appointments including solid surface countertops, hardwood floors, open to the dining area and living room – great for entertaining! The upper level offers 2 large bedrooms with ample closet space. The lower level offers 3rd bedroom, 2nd full bath, 2nd living room, storage and more. This one is a MUST SEE!
Forest Hills – Incredible oasis in sought after Beard Farm. This beautiful contemporary offers the rare floorplan and location combination you have been for. Fenced in backyard, with brand new gorgeous composite decks, hot tub, and completely serene setting – yet just around the corner from everything! Experience for yourself why Beard Farm continues to be one of the most highly desired locations in Forest Hills. This cul-de-sac location offers easy access to the Forest Hills Trails, Burton Park and only minutes to downtown Ada and Cascade Business area. The level of care this home has experience is unlike any you have ever seen. Featuring main floor master, main floor laundry, 3 stall garage, 4 bedrooms – plus an office that could be a 5th bedroom, full baths on every level plus a main floor ½ bath, large storage areas, and everything you could possibly ask for in updates: whole house generator 2022, new decks 2022, newly painted 2022, new entry door 2022, gas line for grill 2022, new hot water heater 2021, fenced in backyard 2021, new driveway 2016/2019, New Central Air unit 2017, several new high quality windows 2016/2014, – the list goes on! To experience this magnificent opportunity in-person – schedule your tour today!
The May 2022 numbers are now and and the trend continues – May 2022 sale prices are higher than 2021. 16.77% higher average sales price in 2022 over 2021 – to be exact. But wait – the news keeps saying the market is slowing down….why? 2 reasons: 1.) As we look at these numbers- this data is from May not yesterday – that is how trend reporting works. That said the market continues to show good strong numbers – however time on the market has lengthened since Jan 2022. Instead of 5 days on market, the trend has been more like 15 days on market. That still places the market in a solid seller’s market, but it is bit more price and amenity specific than it has been in the past. For instance a waterfront property may attract multiple – over list bids, while a more “typical” house that is in a similar price range but not on water, might see their marketing days before the offer(s) come in would be longer than their neighbors who sold last year. Yet the house will most likely still sell higher than their neighbors – see how that works? Bottomline: numbers continue to trend up and buyers continue to want to buy houses. 2.) So the second reason the numbers are not 100% lining up with the news: we don’t sell online ads 😉 Let’s face it the news has to keep you interested 🙂
Selling prices, continue to be ABOVE list prices:
Check out the full report here:
MARKET TRENDS REPORT
April brought in significant gains over April 2021. April 2022 Year-Over-Year SOLD price averaged 18.11% increase over 2021. The chart on page 4 is an excellent quick glance of how many new properties tend to list per month. Should the trend follow that of past years, we are headed into the time when we see the most number of listings on the market (April – June/July.) With the lower inventory, the market continues to have more buyer than sellers which continues to have the market trend toward a “seller’s” market. That is expected to continue however, the amount of choices for buyers is expected to increase. Daily we are seeing new houses hit the market (new inventory) and daily we see many new listings go under contract (pending.)
If you like numbers – this is a great report 🙂 If you want to hear more about how this impacts your house and your future plans to move – let’s go beyond what’s here and talk specifics!
View the PDF report on this link to the right here: APRIL 2022 MARKET TRENDS REPORT
Allendale Schools: This excellent 2 story offers superb location and floor plan coupled with several acres of open land, sidewalks throughout, access to the winding Ottawa Creek, private association park and basketball court. The main floor features superb livability with large living room, open to the kitchen and eating area, half bath, pantry and access to the deck and attached 2 stall garage. Upstairs you will find the 3 bedrooms (including the primary suite featuring private bath and walk-in closet) 2 additional bedrooms, a 2nd full bath, and the laundry – right where you need it! The lower daylight level is mostly drywalled with electrical and ductwork already in place; laid out with future 4th bedroom, rec room, plumbed for a bath and storage. Your going to love this one! Schedule your tour today!
Forest Hills Extreme Value! Approx 5000 sq ft, 3 Stall attached garage on beautiful 1.3 wooded acres at the end of a private cul de sac. 13 acres of common space w/ creek. This beautifully crafted Forest Hills 2 story offers the perfect mix of location and floor plan. Located in the highly sought after Laurel Ridge, this former parade home offers high-end amenities paired with superb livability. From the private backyard with amazing firepit and large deck, to the wonderful light filled sunroom, the nearly 5000 sqft of living space, including 5 bedrooms 4.5 baths, office, 3 stall garage offer the fit, finish, form and function you want in your home today. In addition to the formal dining room, office, living room with fireplace, kitchen, sunroom and mudroom, the main floor features an excellent guest space bedroom and full bath (or a perfect extra office/study room/ etc.) The upstairs features 4 bedrooms 3 full bath, the primary bedroom features vaulted ceilings, walk-in shower, walk-in closet, upstairs laundry, 3 additional bedrooms including an additional suite with private bath. The walkout lower level features a built-in bar with plenty of room for games, workout area, media area and more! Plus a full extra storage room (which could be converted into an excellent media room, wine cellar, workout area or more!) See this one today!
The Future of Home Price Appreciation and What It Means for You
Many consumers are wondering what will happen with home values over the next few years. Some are concerned that the recent run-up in home prices will lead to a situation similar to the housing crash 15 years ago.
However, experts say the market is totally different today. For example, Odeta Kushi, Deputy Chief Economist at First American, tweeted just last week on this issue:
“. . . We do need price appreciation to slow today (it’s not sustainable over the long run) but high price growth today is supported by fundamentals- short supply, lower rates & demographic demand. And we are in a much different & safer space: better credit quality, low DTI [Debt-To-Income] & tons of equity. Hence, a crash in prices is very unlikely.”
Price appreciation will slow from the double-digit levels the market has seen over the last two years. However, experts believe home values will not depreciate (where a home would lose value).
To this point, Pulsenomics just released the latest Home Price Expectation Survey – a survey of a national panel of over 100 economists, real estate experts, and investment and market strategists. It forecasts home prices will continue appreciating over the next five years. Below are the expected year-over-year rates of home price appreciation based on the average of all 100+ projections:
- 2022: 9%
- 2023: 4.74%
- 2024: 3.67%
- 2025: 3.41%
- 2026: 3.57%
Those responding to the survey believe home price appreciation will still be relatively high this year (though half of what it was last year), and then return to more normal levels over the next four years.
What Does This Mean for You as a Buyer?
With a limited supply of homes available for sale and both prices and mortgage rates increasing, it can be a challenging market to navigate as a buyer. But buying a home sooner rather than later does have its benefits. If you wait to buy, you’ll pay more in the future. However, if you buy now, you’ll actually be in the position to make future price increases work for you. Once you buy, those rising home prices will help you build your home’s value, and by extension, your own household wealth through home equity.
As an example, let’s assume you purchased a $360,000 home in January of this year (the median price according to the National Association of Realtors rounded up to the nearest $10K). If you factor in the forecast for appreciation from the Home Price Expectation Survey, you could accumulate over $96,000 in household wealth over the next five years (see graph below):
If you’re trying to decide whether to buy now or wait, the key is knowing what’s expected to happen with home prices. Experts say prices will continue to climb in the years ahead, just at a slower pace. So, if you’re ready to buy, doing so now may be your best bet for your wallet. It’ll also give you the chance to use the future home price appreciation to build your own net worth through rising equity. If you want to get started, let’s connect today.
Source: Michigan Real Estate Updates
The market trends report for March 2022 is now available.
This is an excellent source of quick market snapshots and year or year comparisons.
March 2022 Median sales price is up 17.56% over March 2021.
You can view the report online here: MARKET TRENDS REPORT MARCH 2022
The perfect combination of location and floor plan. Breton Village mall, Fresh Thyme and your favorite shops within walking distance right out your door! A short bike or car ride and your in East Grand Rapids and all it has to offer. Explore this centrally located, cute-as-a-button ranch, featuring 3 bedrooms, 2.5 baths, 2 stall attached garage, wonderful 4 season sitting room, light filled front living room, updates throughout including excellent color choices featuring the most popular colors of today, wonderful design choices in the kitchen and bathrooms – this one is truly move-in ready! Large lower level offers finished space and storage galore. See this one today!
What’s Happening with Mortgage Rates, and Where Will They Go from Here?
Based on the Primary Mortgage Market Survey from Freddie Mac, the average 30-year fixed-rate mortgage has increased by 1.2% (3.22% to 4.42%) since January of this year. The rate jumped by more than a quarter of a point from just a week ago. Here’s a visual to show how mortgage rate movement throughout 2021 was steady compared to the rapid increase in mortgage rates this year:
Just a few months ago, Freddie Mac projected mortgage rates would average 3.6% in 2022. Earlier this month, Fannie Mae forecast mortgage rates would average 3.8% in 2022. As the chart above shows, rates have already surpassed those projections.
Sam Khater, Chief Economist at Freddie Mac, explained in a press release last week:
“This week, the 30-year fixed-rate mortgage increased by more than a quarter of a percent as mortgage rates across all loan types continued to move up. Rising inflation, escalating geopolitical uncertainty and the Federal Reserve’s actions are driving rates higher and weakening consumers’ purchasing power.”
Where Are Mortgage Rates Going from Here?
In a recent article by Bankrate, several industry experts weighed in on where rates might be headed going forward. Here are some of their forecasts:
Greg McBride, Chief Financial Analyst, Bankrate:
“With inflation figures continuing to surprise to the upside, mortgage rates will remain above 4.0% on the 30-year fixed.”
Nadia Evangelou, Senior Economist and Director of Forecasting, National Association of Realtors (NAR):
“While higher short-term interest rates will push up mortgage rates, I expect some of this impact to be mitigated eventually through lower inflation. Thus, I expect the 30-year fixed mortgage rate to continue to rise, although we aren’t likely to see the big jumps that occurred over the past few weeks.”
Len Kiefer, Deputy Chief Economist, Freddie Mac:
“Mortgage rates are likely to continue to move higher throughout the balance of 2022, although the pace of rate increases is likely to moderate.”
In a recent realtor.com article, another expert adds to the conversation:
Danielle Hale, Chief Economist, realtor.com:
“. . . As markets digest the Fed’s updated economic projections, I anticipate a continued increase in mortgage rates over the next several months. . . .”
What Does This Mean for You if You’re Looking To Buy a Home?
With both mortgage rates and home values expected to increase throughout the year, it would be better to buy sooner rather than later if you’re able. That’s because it’ll cost you more the longer you wait. But, there is a possible silver lining to buying a home right now. While you’ll be paying a higher price and a higher mortgage rate than you would have last year, rising prices do have a long-term benefit once you buy.
If you purchase a home today valued at $400,000 and put 10% down, you would be taking out a $360,000 mortgage. According to mortgagecalculator.net, at a 4.42% fixed mortgage rate, your mortgage payment would be $1,807 a month (this does not include insurance, taxes, and other fees because those vary by location).
Now, let’s put that mortgage payment into a new perspective based on the substantial growth in equity that comes with the escalation in home prices. Every quarter, Pulsenomics surveys a panel of over 100 economists, investment strategists, and housing market analysts about their expectations for future home prices in the United States. Last week, Pulsenomics released their latest Home Price Expectation Survey. The survey reveals that the average of the experts’ forecasts calls for a 9% increase in home values in 2022.
Based on those projections, a $400,000 house you buy today could be valued at $436,000 by this time next year. If you break that down, that means the equity in your home would increase by $3,000 a month over that period. That’s greater than the estimated monthly payment above. Granted, the increase in your net worth is tied to the home, but it is one way to put the home price appreciation to use in a way that benefits you.
Paying a higher price for a home and a higher mortgage rate can be a difficult pill to swallow. However, waiting will just cost you more. To explore if you are ready, willing, and able to buy a home, now will be a better time than a year, or even six months from now — let’s connect to begin the process today. Several factors go into the interest rate, the best type of loan, and the best way to handle the next purchase – so planning ahead can make a HUGE difference!
Source: Michigan Real Estate Updates