Local Realtors in Grand Rapids, Michigan say the area's attractions have kept the market stable, and they anticipate a big rush of spring homebuying as interest rates continue to test recent record lows.

"West Michigan is a four-season paradise from Lake Michigan's sandy beaches to the rural woods, hills and rivers of Ada and Lowell," says Realtor Michael May. "Grand Rapids is the entertainment and activity center with big city entertainment and small city convenience."

May suggests, "Market conditions are stable with an ample supply of high quality homes and new construction, large lots and recreational activities. The supply is fairly matched with the demand from buyers eager to participate in our wonderful community."

Says Realtor Karen Jason, "February sales remained unchanged, as the median sales price stayed the same at about $99,900 in the Grand Rapids Public School area. The average time on the market, including all areas, was between 60-90 days with some of the older 90-120 day properties beginning to move."

She advises, "For 2004, economists say a booming job market will be a major factor in keeping the housing market strong. David Lereah, NAR's chief economist, predicts that the 30-year fixed-rate mortgage will move modestly higher this year. He says, 'Fixed-rate loans currently are around 5.7 percent, but we project a gradual rise to 6.5 percent in the fourth quarter. As interest rates move up, the strength of the housing market will depend largely on job growth--which we expect to accelerate and drive demand for homes as the year progresses.' Michigan's unemployment rate has been historically higher than the national average, but has matched upward and downward trends across the nation."

"Demand for housing close in to businesses and services keeps the market fairly steady," observes Realtor Marilyn Smith. "Sales have been average to good with a huge demand for homes in the $90,000 to $120,000 range. There are some smaller, newer subdivisions going in, but the city space is generally filled with houses that were built some years ago. Different areas have different age groupings."

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Published: March 12, 2004

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