More than half of the homes sold in Grand Rapids were purchased above the asking price this year, according to a recent report.
A new report from home services website Porch found 59% of homes in Grand Rapids sold above the asking price between January and September 2021.
The median sale price for homes in the city was $264,277, and the median number of days homes stayed on the market was seven. The average sale-to-list percentage was 103.7%.
Grand Rapids was ranked 20th among large metropolitan areas in the country with the largest percentage of homes selling above the asking price, topping Detroit, which was 29th, and Chicago, which was 46th.
The national percentage of homes sold above the asking price between January and September 2021 was 48.5%. The average sale-to-list percentage was 101.4%, and the median days homes stayed on the market was 20. The median sale price for homes in the country was $368,150.
The percentage of homes selling above the asking price before the pandemic was 20% during off-peak times and around 25% during the busy summer season. At the national level, homes selling above the asking price peaked at 56.4% in June 2021.
According to the report, the increase in home prices is the result of competitiveness among homebuyers due to limited home inventory. The conditions that have contributed to the competitive market are the difficulties securing construction materials and labor, coupled with the shortage of homes prior to the pandemic.
“These conditions have required bidders to be aggressive in their offers to beat out competitors, often offering amounts significantly above sellers’ asking price,” the report said. “The median sales price of U.S. homes has risen by more than 20% since last summer, setting historic records and topping $400,000 for the first time earlier this year.”
Porch’s report was based on analyses of Redfin and U.S. Census Bureau data.