It's baffled economists, but the growing strength of housing markets in the heartland suggests strong economic fundamentals are helping.
Paul Isley, Associate Dean Seidman College of Business at Grand Valley State University, says several things are indicative of a strong housing market. One is that interest rates are relatively low.
But can sales growth in smaller U.S. cities boost the overall housing market?
"Probably not," Isley says. "What we're seeing right now is the bottom of the market. If we look at the overall economy right now, we're starting to see the manufacturing sector cool. We have a lot of data starting to show that people are not wanting to invest because they are afraid of some of the trade issues."
Michelle Gordon is a Grand Rapids-based realtor who has worked in real estate in Grand Rapids for years. She says a few months ago, houses in Grand Rapids were selling fast, but not so much anymore.
"We're seeing a shift happening and we are seeing homes staying on the market longer than they were previously," said Gordon. "We are also seeing homes that originally would get 15 to 20 offers on them are getting maybe three or four offers on them. I would still say that we're hot and booming, but we're just not in a frenzied style. But we are still going strong."
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