Rotarian, Kathy Neveu, spoke with us on the topic of real estate and understanding the current housing landscape. She shared where the housing market currently stands, what’s driving changes, and what we might expect in the near future.
Real estate reflects broader trends in inflation, wages, interest rates, and consumer confidence. She explained how during the pandemic in 2020-21, low interest rates and strong demand in NW Michigan created a booming housing market. In fact, those who wanted to move did so in that year and essentially sales were “borrowed from” the 2022, 2023, and 2024 sales. During those years the market slowed due to the Federal Reserve raising interest rates to combat inflation. With fewer people able to afford new mortgages and less houses on the market, there was a significant drop in home purchases. Kathy went on to explain the current market stabilization and the other factors that continue to impact the market including a growing inventory of listings and interest rates likely to hold steady. While homes may sit on the market longer home values are expected to rise modestly. Click here to view Kathy's slide presentation.