Your 2026 Housing Market Update with LMCU

As prospective homebuyers gear up for the spring 2026 season, it’s important to understand the current market conditions. At Eastbrook Homes, we partner with local lenders to capture their expertise and exclusive offerings for our customers. Considerations like interest rate trends, home availability, and community stability all play critical factors in the decision to buy, build, or wait. 

To get a better look at the housing market landscape, we’ve consulted with Becky Sims at Lake Michigan Credit Union (LMCU). Keep reading for an expert’s opinion, and be prepared for what lies ahead in your homebuying journey. 

High Demand in West Michigan

For the past few years, West Michigan has continued to grow as a popular destination for homebuyers. Many attribute this trend to its overall affordability, strong job market, and family-friendly environment. This, along with the plethora of gorgeous outdoor spaces and proximity to the exciting city of Grand Rapids, makes West Michigan a sought-after location to settle down in. Whatever draws homeowners in, one thing is true: West Michigan continues to boom.

Homeowners looking to buy in the area should be aware of the supply and demand situation here. 

“In West Michigan, the demand for quality housing continues to outpace supply. Like many markets across the country, we are grappling with a housing shortage that has made it increasingly challenging for buyers to find existing homes that meet their needs,” explains Becky. 

“Inventory levels remain low, and competition for the limited number of available homes has driven prices upward. For many buyers, this translates into frustration, multiple offers, and often settling for a home that doesn’t fully align with their lifestyle or budget.”

If you’ve ever bid on a home during a seller’s market, you know how agonizing and discouraging it can be to fall in love with a home, only to get outbid by another offer – again and again. This is especially true when you’re forced to lay it all on the line (financially speaking) by going up to the ceiling of your affordability with your own offer. And, with interest rates lowering, the pool of competition is likely to grow. 

Lower Interest Rates

When interest rates are high, wallets tend to close up – meaning a better chance that prepared buyers will get the house they bid on. With fewer offers on the table, your dream home suddenly becomes more in reach. With interest rates lowering nationally, the opposite has become true. Mortgages are becoming more affordable, leading to more opportunities for home buyers. 

“Recent declines in mortgage rates are creating renewed opportunities for today’s homebuyer. Becky says. “As rates trend downward, monthly payments are becoming more manageable, improving affordability and purchasing power. For buyers considering new construction, this shift makes it an ideal time to build as rates are projected to continue to decline throughout the year.”

Lower interest rates may increase the competition surrounding available homes in the existing market – however, they offer an advantage to those interested in building new construction. The result is a trend toward building new in West Michigan. Buyers who value the advantage of long-term affordability and personalization are setting their sights on new construction. 

“While mortgage interest rates are expected to fluctuate, most projections are that rates will continue to slowly decrease from recent higher rates. In this environment, value and long-term planning matter more than ever,” says Becky. 

“Buyers are becoming more intentional. They are looking beyond just the monthly payment and focusing on the total cost of homeownership, energy efficiency, and durability. This shift in mindset is where new construction, particularly a trusted builder like Eastbrook Homes, stands out.”

Building New With Eastbrook Homes

Aside from housing market advantages, building a new construction home has many benefits, such as:

• Personalization: Build your dream home, instead of waiting to find it. 
• Reduce home maintenance: New homes come with the peace of mind that you won’t have to replace high-ticket systems for around 10 years or more.
• Enjoy lower utility bills: New homes built with the latest in high-efficiency appliances mean you can expect lower energy bills overall, lowering your monthly living costs. 
• Highly sought-after locations: New construction neighborhoods can show up in up-and-coming, high-demand cities, often strengthening their economies and sense of community. 

As Becky explains, “Building a new home offers several distinct advantages over purchasing an existing property – especially in a market like West Michigan. For many, the ability to build exactly what they need – rather than adapting to what’s available – is a powerful draw.”

Especially when house pickings on the market are slim, building new ensures you can get the home you’ve dreamt of, and without maxing out your account in a bidding war. 

“In a competitive housing market, building new isn’t just a lifestyle choice – it’s a strategic one. Eastbrook Homes continues to play a critical role in addressing the housing shortage by delivering high-quality homes and communities that support long-term growth and stability in West Michigan,” says Becky. 

For over 58 years, Eastbrook Homes has strived to build homes that support our local economies and the people and families who make up the backbone of our cities. We do this by using local vendors and getting involved with nonprofit organizations that make a difference in our communities. Another way we do this is by making the building process easy for our customers. From simplifying the design process with our 4,000 square foot Home Creation Studio and expert interior designers, to partnering with preferred lenders who offer flexible financing options to our customers to ensure peace of mind. 

LMCU: An Eastbrook Preferred Lender

At Eastbrook Homes, our customer’s experience is of utmost importance. We go to lengths to discover ways to make the home building process simple, easy and as stress-free as possible. From creating easy-to-use apps, to providing design and construction experts, to creating interactive guides for each stage of the homebuilding process, virtual home visualizers and more, we enjoy going the extra mile for our customers. 

One of the biggest ways we help ease the stress of the building process is by partnering with preferred lenders like LMCU. 

“By partnering early with an Eastbrook preferred lender like LMCU, buyers can confidently navigate financing options, construction timelines, and interest rate strategies to make building a smart, sustainable investment for the future,” says Becky.

When it comes to building a new home, preparation is key. Having the knowledge behind you to make informed and educated decisions will make the process feel more secure while limiting any surprises down the road. 

Read more about how Eastbrook stands behind our buyers on our blog. 

Be Prepared for the Journey Ahead

As buyers get ready to start their searches and interest rates continue to drop, we find ourselves in a seller’s market again in 2026. While low housing supply and high buyer demand seem to write the script for West Michigan’s housing market, you don’t have to play an unfortunate role in your homeownership story.  

By choosing to build new construction, you can avoid bidding wars and use these low interest rates to your advantage, taking back ownership over your homebuying journey. With Eastbrook Homes and preferred lenders like LMCU, you can steward your finances like a pro – and build the house of your dreams. Reach out to us today to get started.