Rick Seese has 50 years experience working in real estate market, and each month, he shares the latest news and outlook for Lowell-area housing market.

June 2025 Edition

-Inflation Trends
-Mortgage Interest Rates
-Market Outlook
-The Latest Area Market Statistics
-Monthly Recap – Market Strength Continues

Inflation Trends

Last week’s reports from the Producer Price Index (PPI) and Consumer Price Index (CPI) painted a calm picture of inflation, showing either minimal increases or slight decreases. These subdued readings have sparked renewed speculation about potential interest rate cuts by the Federal Reserve (FED). While the data supports the case for easing rates, the FED remains cautious, signaling a desire for more sustained evidence before taking action.

However, recent tariff announcements have introduced some renewed uncertainty. Although not directly inflationary in the short term, tariffs could complicate the FED’s decision-making process depending on how they affect global trade dynamics and consumer costs.

Mortgage Interest Rates

Mortgage interest rates have seen fluctuations over the past month but ultimately have decreased slightly compared to 30 days ago. As of last Friday, Bryant Ellam, Loan Officer with Lake Michigan Credit Union in Lowell, reported the following rates:

• 30-Year Fixed-Rate Mortgage: 6.625% (Down from 6.75% last month)
• 5-Year Adjustable-Rate Mortgage (ARM): 6.25% (Down from 6.375% last month)

Ellam noted last Friday that the situation with the Israeli/Iraq conflict is causing financial fluctuations. He also noted that tomorrow (Tuesday, June 17) the next Retail Sales data will be announced, and on Wednesday, the next Fed Meeting will take place. These are notable events that could affect interest rates in the near future.

Market Outlook

The West Michigan real estate market continues to perform strongly as the spring season transitions into summer. The entire West Michigan market, including our focus-area school districts are outperforming much of the Midwest in buyer demand, maintaining a strong seller’s market. Homes that are well-priced—particularly in high-demand areas—are attracting multiple offers, often exceeding list prices. This trend is driving average sale prices higher.

A long-standing inventory shortage remains a central challenge. Unless we see a meaningful increase in new listings, current market dynamics are likely continue throughout the summer.

While higher interest rates are still dampening affordability for many, especially first-time buyers, the underlying demand remains strong. Listings that sit on the market for more than two to three weeks typically reflect initial overpricing rather than weakening demand. If the FED initiates rate cuts in the coming months, it could further amplify buyer activity—especially in the absence of new inventory.

Unlike other consumer markets, housing tends to be driven more by life events—such as job relocations, family changes, and retirement—than by speculative timing. That pattern continues across our local communities, where we’re seeing a seasonal rise in buyer engagement.

Be sure to review the latest market data below, where we continue to track Average Sale Prices, Pending Sales, and New Listings within our focus areas.

Here are the current 12-month rolling Average Sale Prices for our surrounding focus-area school districts, as well as the overall GRAR MLS (Greater Regional Alliance of Realtors Multiple Listing Service).

Over the past month, the school districts of Forest Hills, Lowell, Caledonia, Lakewood, and the entire GRAR MLS saw increases in their average sale prices. In contrast, Rockford, Saranac, and Belding experienced decreases.

As we move further toward the summer market, we should begin to identify definitive trends and effects of any economic changes.

Pending Sales represent properties that are under contract with an accepted offer but have not yet closed. These transactions offer valuable insight into future closing activity, which eventually feeds into actual sale price data.

On a year-over-year basis, Forest Hills, Caledonia, Lowell, Belding, and Saranac experienced increases in Pending Sales, while Rockford and Lakewood saw declines. Along with these strong area numbers, the entire GRAR MLS recorded a robust overall increase in Pending Sales compared to the same period last year.

Looking at month-over-month changes, all focus-area school districts—along with the entire MLS—saw a healthy uptick in Pending Sales, except Lakewood. This upward trend is expected to continue as we move into the summer market.

New Listings are a critical factor in inventory growth, making them an important metric to monitor. A healthy level of inventory is essential for supporting balanced sale price growth—without it, rising demand will continue to drive prices upward.

All our focus-area school districts saw a year-over-year increase in new listings, except for Rockford, Caledonia, and Lakewood. Overall GRAR MLS also recorded an increase in new listings. All our focus areas had increases in new listings from last month, except Lakewood.

With summer fast approaching, inventory levels are beginning to appear to be on a slight decline, as demand is exceeding new listings. The months ahead will provide greater insight into whether inventory will improve or become more limited as we move through the summer real estate season.

June 2025 Monthly Summary

Market Strength Continues

Despite broader economic uncertainty and declining consumer sentiment nationally, the West Michigan real estate market remains a bright spot.

The Grand Rapids region, in particular, continues to attract a wide range of buyers—from young professionals to retirees. This popularity is fueled by abundant natural amenities (trailways, lakes, beaches, and parks), a robust and diverse job market, strong schools, low crime rates, and a wealth of healthcare and research facilities.

Our region consistently ranks among the top places in the U.S. to raise a family and to retire—an increasingly rare combination that supports both near- and long-term housing demand.

As we head into summer, we’ll keep you informed every month with updates, tracking how economic shifts and FED policy decisions impact our local real estate market.

Rick Seese works with buyers and sellers of residential, commercial, and industrial real estate. He is an Associate Broker with Greenridge Realty, Inc. and has been licensed full-time for 50 years. If you’re interested in reaching out to Rick for more information, or have a question for the monthly article, you can contact him via email ([email protected]), visit his website at www.rickseese.com or Facebook page or call/text him at 616-437-2576.