GRAND RAPIDS, Mich — Typically, the spring is the time of year when more homes are sold as buyers and sellers aim to move before the start of school.
But this year's market has seen some slumping sales.
A new report from Redfin says home sellers are outnumbering buyers by the largest margin in 12 years. The National Association of Realtors says high sticker prices and high mortgage rates are turning away potential buyers.
Looking at the numbers, the median existing home sale price in April across the country rose to over $400,000, continuing a trend of price increases for 22 straight months.
In the Grand Rapids market, Redfin lists the median sale price as $285,500.
As of last week, interest rates for a 30-year fixed-rate mortgage were at 6.89%, according to Freddie Mac, and experts warn these numbers won't be coming down anytime soon. This disparity between the number of home sellers and buyers is a significant factor in the current market.
So, what does this mean for those selling their homes right now?
Chen Zhao, Redfin’s Head of Economics Research, advises sellers to be patient and to price their homes correctly for the current market. "Time is not on your side right now. Sell earlier rather than later, and it's really important to price your home correctly for the current market and not use comps that are outdated because you don't want your home to sit."
For buyers, there may be an opportunity even with the current interest rates. Zhao notes, "You really have an opportunity now. There's a lot more inventory on the market, so you have a lot more to choose from to find a home that you like. And once you find that home, there's really, there's a good opportunity to negotiate right now."
Finally, remember that home ownership may not be the best fit for everyone.
READ MORE: To Rent or To Buy? Why home ownership isn't always the answer
This story was initially reported by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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