Positive periwinkle

Well, the numbers for the first couple of months of the year 2010 are in.  And there´s more good news than many anticipated in Grand Rapids, MI.  Although, there was some lethargy in the overall US market, Grand Rapids, MI has continued to buck the downwards trend in some significant areas.

If you´re a homeowner, you should be know that 2010 has started off in a good way.  There has been a 13.4% increase in overall homes sales so far (from 759 in the same period in 2009 to 861 today- January figures) and the average Sales Price is trending significantly higher; TODAY at $106,409 vs $95, 182 - January stats.  These numbers continue to improve in February with average Sales price of $111,457.  If you EXEMPT Short Sale and Foreclosure activity, those numbers jump closer to the $140,000 range!

So you´re probably thinking...What´s going on with Distress Sales?  Well, while  they do continue to exert a significant dampening trend on the Grand Rapids, MI market place.  It is worth noting that the percentage of Short Sales declined from just over 57% of total sales volume in January to 50% in February.

This is an important number to track, because it is a foreshadowing of the true health of the marketplace.  There are still troubling indicators in the larger economic sphere as jobs continue to be an issue in Michigan.  

I think two additional issues are also in play here and may make it difficult to get an accurate grip of the true state of affairs.  The expansion of the Home Buyer Tax Credit last year to include a larger number of potential buyers until April 30, 2010 and the fact that mortgage rates continue to be exceptionally low but are expected to increase in the latter part of the year. On the positive side, many banks have finally figured out how to systematize the Short Sale process and are streamlining the approval path relatively speaking.  Hopefully, this will help drain the pipeline of excessive inventory a little more quickly.

Another indicator you might find interesting is this:  the Median Price increased from a middling $60,000 - $62,000 to almost $80,000 in February 2010.  In the luxury market, we´re also seeing signs of encouraging activity.  Many homes in the $400,000 + range were especially hit hard with losses in the past year.

Last year, approximately 80 homes Sold in this Price Range (over $400,000).  However, just since January, there have been 11 homes Sold in Grand Rapids, MI over the $400,000 price mark! If you´ve been wondering about the possibility of selling an Executive level home, it may be time to get ahead of the curve and take a fresh look at your prospects. Audu Real Estate is available to provide an extensive analysis of the market including strategic advice in positioning your home advantageously.  Contact us at 616-791-0511.

In case you´re curious, here´s some interesting information about periwinkle. 

picture courtesy of Franco Folini

Good News on the housing front & just in time for the Holidays in Grand Rapids, MI.  In a market which has seen the worst of times in recent years, a recent article in the Grand Rapids Press heralding an increase of 35 PERCENT in home sales over 2008 was more than welcome...local professionals are ecstatic!

It's been great to touch base with so many agents who tell me they are busy again. We sold most of our inventory within the last couple of months and are "re-stocking the shelves." The 'HOT PRICE' range is $100,000 ~ $140,000.

This has helped to increase the average Home Sale Price to $109, 826 which was 3.2 percent higher than the same period in 2008. But...year to date, home prices are still down by 15.1% over 2008, a number which can be attributed to the on-going issues with foreclosures and short sales in the local market. 

Now, all this good news does not mean that everything is OK.  There is still a large nventory of foreclosed properties which have not yet been placed on the market and joblessness continues to be a scourge on the Michigan economy.  As we near the end of the year, what happens in these two areas as well as the credit markets will send strong signals about the on-going journey of recovery.

If You're a Homeowner...

These past several months have created some glimmers of hope.  Inventory levels have declined and housing prices have inched up.  More importantly, Sales have increased substantially. One of the critical assessments that homeowners who need to sell a home can make is the OPPORTUNITY COSTS CALCULATION.  It's a fairly simple calculation which aids in determining how long you should hold on to your home, if this is a time to sell your home and what your carrying costs without a Sale actually are.

To learn more about calculating Your Opportunity Costs, click here...

July 2009 Market Statistics

It's been almost 2 years since the Grand Rapids Association of Realtors began keeping close tabs on the upswing in the sale records for foreclosures and short sales.

Back in  July of 2007, real estate agents were becoming increasingly nervous about short sale and foreclosure sales which were absorbing about 25% of all sales and almost 18% of the dollar volume.  For a market which had NEVER seen those numbers however over 5%, this was a disturbing trend.

Few could have imagined what the numbers would climb to 18 months later when short sales and foreclosures for the month of January 2009 were just below 70% (68.60%) and accounted for 1 out of every 2 sales!

Since that dramatic peak, there seems to have been a levelling off.   From a slight decrease to 67.75 in February, the numbers have continued to drop.  The past several months, the percentage of homes sold in the Grand Rapids, Mi area which have been designated as short sale or foreclosurse has hovered around the 50% mark. 

BUT, more importantly, the dollar percentage of these types of sales has dropped dramatically.  Distress sales now account for approximately 40-35% of the total sales volume.  In addition, we are witnessing substantial increases in total homes sold from the same period of time 12 months ago.

For instance, in June of 2009 a total of 624 homes sold versus 452 in June of 2008.  One of the most dramatic rises occurred in March of 2009 when there were 700 homes sold...almost DOUBLE  the number of homes sold in March of 2008 (436 homes sold in 3/2008).

All these signs are welcome in a market which has witnessed a period of time in which 10 homes a day are being foreclosed in Kent County according to a recent report studying these trends.

While we may not be totally out of the woods yet, I am thankful to see this shift continue. I will continue to keep you updated.  Visit my blog for regular updates on the Grand Rapids, MI real estate housing market situation.

Copyright 2009  Audu Real Estate  All Rights Reserved

Sellers in the Grand Rapids real estate market had a little extra spring in their step in May where the sales price of a single family homes has seen an increase in the average price of 10.2% to $108,099, compared to April 2009 with an average sales price of $97,073, according to the figures prepared by the Grand Rapids Association of REALTORS®. This is a 12.1% increase in the home sale price from the beginning of 2009, where home prices were an average of $95,010 for the month of January.