Ottawa County housing market could be cooling, but higher values ​​remain

HOLLAND — After two years of the hottest housing market in recent memory, local real estate agents suspect a cool-down is coming.

But that doesn’t mean prices will plummet, as many homeowners fear. Despite rumors of a recession, and evidence some markets are severely overvalued, economists and experts don’t expect decreases to happen overnight.

More:Think homes in Michigan are overpriced? You might be right.

More:Local realtor: ‘No end in sight’ to amped-up seller’s market

More:Home prices not likely to fall anytime soon in Ottawa, Kent counties

A recent analysis from Moody’s found that swatches of communities in lower Michigan have meaningfully overvalued housing prices. Muskegon was found to be overvalued by a whopping 59 percent — ranking third in the country. Grand Rapids, meanwhile, was overvalued by 42 percent.

The median nationwide price for an existing home hit an all-time high in April at $391,200, up 15 percent from 2021. But since then, sales have slowed, as mortgage interest rates continue to rise. Inflation, too, is causing headaches for first-time homebuyers, forcing them to spend more on groceries and gas.

“I think we’re going to enter a much more balanced market,” said Rachel Gallegos, a lakeshore native and real estate agent. “I think it’ll still be a seller’s market for the foreseeable future, but we’re already starting to see buyers who have fatigue or who have been priced out.”

Gallegos thinks overvalued properties in Muskegon and Grand Rapids don’t necessarily reflect values ​​in Ottawa County.

Rachel Gallegos

“I think anytime you get into a larger city, the market is generally going to be a little bit warmer than what you’re going to see in more rural counties,” she said. “We’ve seen that across the board. Of course, none of us really have a crystal ball, but we do have lots of economists that review this data and history for a living.”

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