It’s not uncommon for a new year to bring about a lot of discussion around what will happen with the market. We’ve all been asked countless times, talked about it amongst ourselves, and decided it was time we take this opportunity to share where we stand with our 2019 Market Predictions.
I spoke with each of the guys and gave them an opportunity to share their opinions and I think you’ll find they’re generally on the same page.
In 2018 Kent County real estate values experienced a 9.7 appreciation rate as a whole. While I do not think we will see quite that high of an appreciation rate in 2019, I still project our final appreciation rate at the end of 2019 to be between the 5-7% range. I think we will still be dealing with limited inventory and the demand for new buyers entering the marketplace will still be very active. Below are a few of my additional reasons for appreciation in 2019.
1. I believe interest rates will stay below 5% for most of the year. These are still historically low rates giving buyers more buying power.
2. Forbes recently named GR (2018) one of the fastest growing economies in the country. This coupled with numerous rankings listing Grand Rapids as one of the most affordable places to live in the country, leave plenty of room for real estate appreciation in 2019.
Compared to the rest of the nation, Grand Rapids is a VERY affordable place to live and all signs from Josh May are pointing at a strong real estate market in 2019.
2019 I believe will be another competitive year for a lot of buyers. Rates currently are still historically low but are expected to increases 2 more times in 2019. Inventory is low so I think buyers can expect another year of multiple offer situations. I also believe Grand Rapids homes will rise in value in 2019 by 3-6%. It is still a sellers market and will increase as we approach the warmer months.
My prediction in the Real Estate Market for 2019 is that it’s going to be similar to what Buyers and Sellers have seen in 2017 and 2018. Extremely competitive in the peak seasons and some deals in the off seasons. Interest rates for the most part were around 4.25% in 2018 and are currently around 4.75%. For example, a Purchase Price of $250,000 with 4.75% interest rate compared to in 2018 with 4.25% is around $5,000 to $10,000. I do not believe this is enough to turn Buyers away. Historically, 4.75% is a good interest rate. It still makes sense to buy versus renting if you live in the Grand Rapids area and are sticking around for at least 3-5 years.
If you’re looking to buy or sell this year, we’d love to be the team that helps you through that process!