Experts predict West Michigan housing market will cool this summer
Some experts are now predicting that the bubble won’t burst like it did in the 2008 housing market crash, but things will begin to at least slow down for the moment this summer.
After more than three years of a red-hot housing market in West Michigan, some experts are predicting things will cool off this summer.
High demand and limited supply of homes has caused housing prices to soar in West Michigan over the past few years.
According to the Grand Rapids Association of Realtors, which tracks market patterns across West Michigan, in Kent County, this year’s average home sale price is over $300,000 a 15% percent increase from just this time last year.
However, some experts are now predicting that the bubble won’t burst like it did in the 2008 housing market crash, but things will begin to at least slow down for the moment this summer.
Adam Paarlberg is the President of Greenridge Realty.
“Right now, we see rising interest rates on the consumer side, and we are paying attention on what kind of impact that will have on buyer demand so far,” Paarlberg said. “We are also watching to see what impact that will have on the seller side. We’ve had not an affordability issue but and availability issue in real estate.”
In addition to rising interest rates, Paarlberg points to inflation and a slowing economy that will make things less competitive for homebuyers than they have been in recent memory.