Why Buyers and Sellers Face Very Different Conditions Today
There’s a new divide in housing right now. In some states, buyers are gaining ground. In others, sellers still have the upper hand. It all depends on where you live. So what is the situation here in West Michigan?
These 3 maps show how the split is playing out across the country. In each one:
- Darker Shades of Blue = Buyer friendly
- Lighter Shades of Blue = Seller strong
Inventory Sets the Stage
While the number of homes for sale has improved pretty much across the board, how much growth we’ve seen can look dramatically different based on where you live. And that impacts who has the leverage today.
This map uses data from Realtor.com to break it down:
- The darker shades of blue show where inventory has risen more than in other areas of the country. Buyers here have more to choose from and should have an easier time finding a home and leveraging their negotiating power.
- The lighter shades of blue are where inventory is still low. Sellers are more likely to sell quickly and make fewer concessions.
Prices Follow Inventory
The second map tracks how home prices are shifting by state. Just like above, you can see the divide taking shape. Many of the same areas are darker blue. That’s because there’s such a close tie between inventory and prices. When inventory rises, prices moderate.
- The darker shades of blue are where prices are actually coming down slightly or flattening. Because, with more homes for sale, sellers may have to cut their price or throw in concessions to get a deal done. And that benefits budget-conscious buyers.
- The lighter shades of blue show areas where prices are still climbing because inventory is low. Sellers may still see buyers competing for homes, and that pushes prices higher.
Time on Market Tells the Same Story
Finally, here’s how quickly homes are selling state by state. See the colors? For the most part, they follow the same general pattern with a lot of the darker blues being in the lower half of the country. And here’s why.
Generally speaking, as inventory grows, homes don’t sell as quickly. That’s why some of the same areas that have more inventory, see homes take more time to sell.
- The darker blues show where homes are staying on the market longer. That gives buyers more time and options, and signals sellers may need to adjust their expectations.
- The lighter blues are where homes are still moving quickly. Sellers there may feel more confident, and buyers may need to act fast.
This explains why some sellers in these darker blue states are feeling frustrated when their listings linger, while others in tighter markets (like the lighter blue states) are still seeing their homes sell quickly.
How does West Michigan and Greater Grand Rapids Compare?
Inventory is UP in West Michigan as well however it is still less than the number of buyers out there looking. Here is an overview of the numbers in the area:
Bottomline: West Michigan/Greater Grand Rapids – remains in a seller’s market but there are now:
- More choices for buyers
- More competition for sellers
Impact on your next move
While all of this is critical for success – each area is influenced differently. A properties amenities, and precise location has a HUGE impact on how the market will respond.
If you want to understand how these items impact you, let’s connect. We can walk through the specifics and what they mean for your next move.