West Michigan has had a great year as far as the local real estate market goes. Unlike many major metropolitan areas, the greater Grand Rapids real estate market has grown increasingly strong throughout 2015, with low inventory and high demand, coupled with rebounding home values. The West Michigan real estate market has grown over the last few months, but that trend appears to be at odds with the overall market in the state of Michigan according to reports from professional analysts.
According to a recent article published by The Grand Rapids Business Journal, the latest Michigan Real Estate Trends Report from the Urban Land Institute and the UM/ULI Forum indicates that Michigan real estate will be likely looking less rosy in 2016 than it has in previous years. Specifically, the report indicates that statewide real estate growth has been slow and very uneven. Certain cities have benefited from stronger markets, while others have not.
Those listed as having strong markets with above-average outlook were Traverse City, Detroit, Ann Arbor, Kalamazoo, and Grand Rapids. In many markets and counties, the report indicates that while real estate professionals are optimistic, they are less so than they reported being at this time last year. However, that lack of fresh optimism is not an issue in the Grand Rapids market, where growth and increased home values are what is currently trending. Kent County was one of the three highest performing counties in 2015 as far as reported real estate transactions are concerned.
The report analyzes the overall economic health of the state, which it reports hit the bottom of its downward trend in 2010/2011. While there has been substantial recovery, there is still some way to go before major economic markers reach their pre-recession levels. The median income in the state, for exmaple, is up over 1% when compared with the median income in 2013. Sadly, though, that new median is still over $12,000 less than the median income in Michigan in 2000. Employment, while also up, is still a full ten percent below the 2000 levels reported.
Interestingly, a substantial portion of the population in the state are considered “empty nesters,” while there appears to be a deficit of young professionals, especially those new to the state. However, given the kinds of economic growth seen in Michigan, the empty-nesters have a much better chance of making a strong impact on the real estate market than the underemployed and unemployed Generation Xers and Millennials could. Likewise, the commercial and industrial markets are stronger than residential markets in some areas, with industrial properties nearly tripling their average cost since 2010.
Overall, it's important to note that West Michigan and Grand Rapids were out-performing almost all other regions in the state, and that home values are on the rise. Area professionals are optimistic about profitability as well, meaning that right now is a great time to buy and a great time to sell. If you're planning of wading into the real estate market, make sure to get in touch with the experienced professionals at Pyxis Realty before you do, to ensure you have the best help available!