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.

May 2025 Edition

-Inflation Trends
-Mortgage Interest Rates
-Market Outlook: Where Are We Headed?
-The Latest Area Market Statistics
-Monthly Recap – A Calm Before the Storm?

Inflation Trends

Both the Consumer Price Index (CPI) and the Producer Price Index (PPI) declined in April, with drops exceeding economists’ expectations. While this is welcome news, the Federal Reserve (FED) remains cautious, signaling it is not yet convinced that this downward trend in inflation will continue over the coming months.

One factor that could complicate the picture is the effect of higher taxes, which are expected to begin showing up in monthly economic data in the near future. Additionally, it’s unclear how ongoing supply chain issues may contribute to inflationary pressure, or how much relief consumers might see from the administration’s recent tariff reduction adjustments.

Despite April’s lower inflation readings, the cost of living remains high for many families. Retail and grocery prices continue to strain household budgets, even before factoring in the lagging impact of tariffs. The FED continues to monitor closely, especially as it anticipates that tariff-related inflation may start to emerge within the next few months.

Mortgage Interest Rates

Mortgage interest rates have seen minor fluctuations over the past month but ultimately remained steady 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: 6.75% (No Change)
• 5-Year Adjustable-Rate Mortgage (ARM): 6.375% (No Change)

Ellam noted that the current week is relatively quiet on the economic calendar, with little data expected that would sway interest rates in the short term.

Market Outlook: Where Are We Headed?

Locally, the West Michigan real estate market continues to perform well, fueled by strong buyer demand as we enter the end of the spring season. Home showings are active, and multiple-offer scenarios remain common on competitively priced listings. Compared to other regions across Michigan and the Midwest, West Michigan remains a standout—thanks in large part to its resilient, diversified economy and national recognition as a desirable location to live and raise a family.

While layoffs and rising unemployment numbers are becoming more common in larger urban areas nationally, West Michigan has managed to hold steady. That said, broader economic headwinds are beginning to make their presence felt. Retail sales have slowed, consumer confidence remains fragile, and many households are holding off on discretionary purchases amid uncertainty tied to tariffs and job security.

As I’ve noted before, the economic effects of tariffs will most likely take 30 to 90 days to surface in key indicators. We’re now entering that window. Many consumers are already adjusting spending habits—especially those working in sectors that could be directly impacted by new trade policies.

Even in uncertain economic times, housing often behaves differently than other consumer markets. Real estate remains driven by life events—job changes, family transitions, downsizing—rather than speculation or timing. That trend continues locally, with strong activity across our focus-area school districts, reflecting the seasonal upswing in both listings and buyer interest.

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 Rockford, Lowell, Caledonia, and Saranac saw increases in their average sale prices. In contrast, Forest Hills, Belding, and Lakewood experienced decreases, along with a slight decline across the entire GRAR MLS.

As we move further into the year, it’s still too early to identify definitive trends, but we will continue to track and analyze the 2025 spring market data for emerging patterns.

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, Caledonia, Lakewood, and Saranac experienced increases in Pending Sales, while all other focus-area school districts saw a range of declines. Despite the mixed performance, the entire GRAR MLS recorded a slight 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 an uptick in Pending Sales. This upward trend is expected to continue as we move toward the end of a busy spring 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.

Every focus-area school district saw a year-over-year increase in new listings, with the exception of Forest Hills. Overall GRAR MLS also recorded an increase in new listings.

With spring in full swing and summer fast approaching, inventory levels are beginning to rise. However, additional listings are still needed to meet growing seasonal buyer demand. The months ahead will provide greater insight into whether inventory will continue to improve—or remain limited as we move through the peak real estate season.

May 2025 Monthly Summary

A Calm Before the Storm?

We may be at a pivotal moment. Over the next 60 days, we expect to see the early impact of:

• Government-imposed tariffs
• Public sector job cuts
• Additional private-sector layoffs

Key questions remain:

• Will inflation reverse course and begin to rise again?
• Will supply chain bottlenecks resurface due to reduced imports?
• Will businesses begin depleting inventory and scaling back production?

Despite the uncertainty, West Michigan’s economy is better positioned than many others. A strong and diverse employment base provides a buffer against national trends. Our local housing markets—particularly in well-performing school districts—continue to see healthy activity, driven by a lack of available inventory and steady buyer demand.

As we head into the summer, we’ll continue to monitor the numbers, track economic shifts, and report on how those changes affect 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 over 40 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.