Grand Rapids Spring Real Estate Market to be Hotter Than Ever Once Lockdown is Lifted

Tom Sprich • June 4, 2020

The Grand Rapids real estate market has struggled with a stagnant economy for a long time. However, recently, Grand Rapids seems to be making a comeback in the real estate market. 

Improvements in the local job market with brands like Amazon and other internationally renowned research and educational facilities call Grand Rapids their home — demand for houses in this region is undoubtedly bound to rise. Furthermore, the fact that real estate is affordable makes this an ideal region for investors. 

Here is a look at some of the reasons Grand Rapids spring real estate market is poised to be hotter than ever after the lockdown is lifted.

Low Percentage of Distressed Properties

According to data by RealtyTrac, the real estate market in Grand Rapids has performed well when you look at the rate of foreclosures and distressed properties. Since housing is affordable in the region, Grand Rapids has 123 distressed properties, which is low, considering that it is a big city. Furthermore, a majority of the distressed properties are auction homes.  These homes have been repossessed from their owners and are up for auction. Banks own the other distressed dwellings. This means the houses failed to sell during a previous auction. These distressed homes present an opportunity for real estate investors. The new owners of these distressed homes are motivated to sell at a discount. Therefore, during the COVID-19 spring market, investors will come to Grand Rapids looking for distressed assets to increase their odds of getting a deal with attractive profit gains.

Increasing Home Value

Grand Rapids home values have risen tremendously since 2018. According to a report by Realtor, out of the largest metro areas in the U.S., Grand Rapids was forecasted to have the most significant percentage increase in 2019. A related study by LittleBigHomes.com focused on the trend in home prices in 380 metropolitan areas. The forecast for Grand Rapids was that housing prices would go up. Another study by Redfin, a real estate company, regarded the Grand Rapids housing market as the most competitive. According to the study, homes in Grand Rapids sell in about 15 days. Therefore, after the lockdown is lifted, investors will be looking to buy real estate here to make significant profit margins later on.



Job Growth

According to the Bureau of Labor Statistics, the rate of unemployment in Grand Rapids has been decreasing since 2010. In 2018, it lingered around 4%. The Spectrum Health headquarters is partly to blame for the increasing local job growth. The city is also known for its thriving automotive, aviation, and furniture manufacturing businesses. This is a strong indicator of a healthy and stable economy and one of the reasons investors will be scrambling for real estate opportunities in Grand Rapids during the COVID-19 spring market.


Affordable Housing

Grand Rapids real estate market is still affordable, despite the high appreciation rates of home values. However, on a national scale, the median home value in Grand Rapids is a little over $150,000, which is affordable. Recently, Realtor.com listed Grand Rapids housing market as the hottest zip code in America based on how quickly homes were being sold in zip code 49508.


Endnote

Grand Rapids real estate market is bound to be hotter than ever during the COVID-19 spring market. The high job growth, low vacancy rates, and the young adult population have contributed to the booming real estate industry in Grand Rapids. Furthermore, according to numerous studies, the number of distressed houses, the increasing home value, job growth, and affordable housing in Grand Rapids are all factors that prove the city has a great potential in the real estate industry this spring.


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