Author: Michelle Teitsma – Kim Munch

Lately, there’s been a lot of discussion around where U.S. interest rates might be headed—and whether we could see them remain higher even as far out as 2027. With persistent inflation and long-term Treasury yields staying elevated, the path back to lower rates is looking less predictable than many had hoped. The Federal Reserve is weighing inflation concerns against signs that the economy’s momentum could be slowing—creating a balancing act that keeps everyone watching closely.

For those of us helping clients buy and sell homes in Spring Lake, Grand Haven, and Muskegon, these interest-rate trends have real implications. Elevated long-term yields mean borrowing costs could stay up for buyers, sellers, and anyone considering refinancing. The commercial sector and those eyeing new construction or waterfront properties feel it, too.

In times like these, a balanced and well-informed approach is essential. We’re always watching how fiscal pressures, rate uncertainty, and inflation might affect both the broader market and the neighborhoods we serve. Having guided clients through market changes since 1992, our team is here to help you understand what these shifts could mean for your real estate decisions.

We’re seeing a notable shift in the national housing landscape: in Mid-Q3, the price per square foot dropped year-over-year in 36 of the 50 largest US metro areas. That’s about a 2% nationwide dip—marking the tenth consecutive month of softer annual pricing across much of the country. As the quarter wrapped up, momentum slowed, with more sellers adjusting their asking prices to better meet buyers where they are. High mortgage rates are still making affordability a challenge, especially in markets that saw rapid gains during the pandemic. Many of those boom-era regions are now giving back some of those increases, aided by inventory levels that are higher than before 2020. As a team focused on the West Michigan shoreline, we’re keeping a close watch on how these national trends play out locally—especially for those considering a move or investment in our Spring Lake, Grand Haven, and Muskegon communities. Our experience navigating market shifts since 1992 allows us to help clients find the right fit as expectations realign on both sides of the table.

We’re seeing an unusual slowdown in our local market, and it’s not just here in Spring Lake, Grand Haven, and Muskegon—it’s happening across the country. Higher mortgage rates are making it tough for buyers to justify bigger monthly payments, so many are choosing to wait on the sidelines. On the flip side, homeowners who locked in lower rates aren’t eager to list their homes, especially when they have a great mortgage in place. Pending sales are reflecting this tension, with fewer house hunters actually making offers. What we’re left with is a bit of a housing stalemate: buyers are hoping for better affordability, sellers don’t want to give up their advantageous loans, and the pace of transactions remains slower than usual. Having guided clients through many market cycles since 1992, our team understands how these shifts impact real people and real decisions. Whether you’re considering a move now or simply keeping an eye on the market, we’re always here to share insights and help you navigate what comes next.

We’re seeing a shift in the housing landscape: over the four weeks ending August 23, new U.S. listings ticked up 0.4% and total homes for sale rose 0.5%—the highest inventory since early Q2. But with the average mortgage rate still hovering near 7% (a 13-month high) and the median sale price up 1.9% year-over-year to over $400,000, many buyers are holding back, which pushed pending sales down 1.1% to a six-month low. For those still in the market, increased inventory and softer demand are creating more buyer-friendly opportunities. Active shoppers today have more room to negotiate on price or request concessions, especially on homes that have been listed for several weeks. Sellers are seeing the best results by setting realistic prices that reflect the current market, rather than chasing past highs. In our Spring Lake, Grand Haven, and Muskegon communities, we continue to help clients navigate these changing conditions—whether you’re looking for a waterfront retreat or your next single-family home, strategic pricing and negotiation are more important than ever.

As we move through 2026, the national real estate landscape continues to evolve—and it’s worth digging into what those numbers really mean for buyers and sellers across Spring Lake, Grand Haven, and Muskegon. While nominal home prices keep inching up, one key federal index held steady from mid- to late-Q2 (once adjusted for seasonality). Nationally, there was about 1.5% annual price appreciation in late Q2, a slight uptick from 1% earlier in the quarter, but still trailing inflation, which hovered around 3.5%. That means, for the 13th month in a row, the real value of homes (once adjusted for inflation) slipped a bit further—even as lower inflation and firmer prices slowed that trend. One federal measure has shown positive annual gains every single quarter since early 2012, underscoring how resilient nominal home prices have been, even with inflation in the mix.

For many in our lakeshore communities, it’s the rising monthly payments on existing single-family homes that hit closest to home. Affordability remains the defining challenge, especially for first-time buyers. With decades of experience and a focus on helping clients navigate market shifts—waterfronts, condos, new builds, and everything in between—our team is here to help you make sense of the numbers and find your perfect fit.