2015 has been a great year for the West Michigan real estate market and the Grand Rapids real estate market. Overall, home values in the area are up, as is the average selling price. Time on the market is down, and home inventory has been low enough to make houses pop on and off the market within days of being listed. This year has been a great time to sell a home and also a great time to buy one. But it isn't just homeowners and real estate investors who are benefiting from the rebounding local real estate markets. According to an article today in the Grand Rapids Business Journal, homebuilders are highly optimistic about the impact of high housing demand on their potential growth this upcoming year.
The Home Builders Association of Michigan released a statement this week indicating they project a 25 percent increase in new housing units constructed in 2016. That is very substantial growth in any area, but in the slow-moving housing market, that's truly substantial. The Home Builders Association of Michigan is estimating that there will be 16,831 building permits issued in 2016, up from 13,467 in 2015. They are hoping to see the most growth and the most profit in a decade.
The article intimates that members of the HBA are optimistic that the 25 percent increase they're hoping for might actually be on the low end of things. Given the strong employment market and the increasing values of the limited inventory on the market, they may just be on to something. As demand for housing increases in certain areas, the existing inventory will be able to command much higher prices, making newly built homes much more competitive in a region with low home prices, when compared with other major urban/suburban markets nationwide.
For potential home buyers, this is nothing but good news. More new houses being built means that some of the pressure on buyers created by a fast moving local market with low inventory can be avoided. In areas where new construction is competitive with existing homes, buyers can have their cake and eat it too, choosing the features and colors of their home, which will be made-to-order for them. This can have an impact on the existing real estate in an area as well, helping to stabilize prices and demand.
If you are seriously considering purchasing a home, either an existing home or a newly built structure, you should give the professional, educated team at Pyxis Realty a call today! With our extensive, hands-on knowledge of local markets and communities, our team members will be able to help you find the right home in the right neighborhood for the right price. Whether you're a first time buyer or someone who is simply new to the area, our team will make sure finding you the perfect home is their number one priority! Don't wait until the spring rush kicks in, get in touch with our team today and discover how simple home buying can be with the aid of the Pyxis Realty team!