FOREST HILLS, Mich. — The typically busy spring moving season has been quieter than usual as home sales decline across the country, creating a ripple effect that's impacting local businesses that depend on residential moves.
Two Men and a Truck, a moving company serving many areas across West Michigan, including the Forest Hills area, has experienced an 8% decrease in moves compared to last year, according to Morgan Nelson, director of marketing and communications.
"We've definitely seen a decrease year over year in phone calls and our online leads," Nelson said.
The company has noticed changes in customer behavior. While clients previously called two to three weeks in advance, they now book services months ahead of time and spend more time price shopping.
"We're still seeing that there is a need in moving. It's just the way that consumers are going about it. It's a little bit different. They're more price conscious. They're taking their time," Nelson said.
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Strong Demand, Limited Supply
The local decline reflects national trends. Existing home sales fell 3.6% from February to March, according to the National Association of Realtors. Kent County has also seen slightly lower sales and pending deals.
However, local realtors say demand remains strong despite the shortage of available homes.
"The year to date sales are up about 3% year over year from last year in West Michigan," said Jordan Painter, owner of Keystone Home Group Realty in Cascade. "But new listings are down 4.3%."
The shortage of available homes creates intense competition among buyers when properties do come on the market. Painter noted that the absorption rate — how long it takes for all homes currently on the market to sell — is just over one month, well below the healthy three-to-six-month range.
"We're seeing a lot of demand, and we're just really still not seeing the number of listings rise to meet the demand that we have currently," Painter said.
Interest Rates Create Challenges
Joshua Cohen with The Lucas Howard Group said higher interest rates have made purchasing homes more expensive and created a disincentive for current homeowners to sell.
"In the past 5 to 10 years, there have been many sellers who have refinanced to a much lower interest rate than whats on the market right now. If you own a home at $500,000 with a two and a half interest rate, the prospect of selling that home and moving into something either bigger or smaller at six and a half percent is much less appealing," Cohen said.
Cohen says home prices in West Michigan recently topped $400,000 on average for the first time ever. In Forest Hills specifically, the average sale price increased to $650,000 this year from $625,000 last year, according to Painter.
Impact on Workers and Costs
The slowdown has affected moving company employees who depend on steady work.
"We have guys that want to work 30-40 hours a week, and with the lower phone calls and the lower the move count. You know, those guys aren't getting the hours that they want," Nelson said.
The company has adapted by also focusing on ancillary services such as storage solutions and internal moving for homeowners who are renovating rather than relocating.
"It's a struggle for people to buy homes, and I think we're all feeling it," Nelson said.
Moving costs have also increased according to Cohen. He says he's working with clients who are being quoted double and sometimes triple for interstate moves.
"I think housing prices continue to rise, the cost of services continue to rise, and I just think buyers are going to be pinching pennies wherever they can," Cohen said.
Looking Ahead
Despite the challenges, Two Men and a Truck is preparing for the busy summer season, with June typically being their busiest month. The company has adapted by focusing on storage solutions and internal moving for homeowners who are renovating rather than relocating.
Cohen doesn't expect prices to drop and advised potential buyers not to wait.
"At this point, I'm telling buyers, if you're in a position to be able to buy now, buy now. Get in as soon as you can, because values are going to only continue to rise," he said.
As the housing market continues to evolve, businesses like moving companies are watching closely, knowing that when people aren't making moves, the impact extends far beyond the real estate industry.
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.
