Grand Rapids MI Area Real Estate Statistics ~ Fall/Winter 2011
As the last embers of 2011 burn slowly into recent history, it's always instructive to take a look back at where we've been with regards to the real estate market in the greater Grand Rapids metropolis. The numbers released by the Grand Rapids Association of REALTORS® show improvements in a number of areas. Here are some of the highlights:
1. Inventory Levels reduce 25%
With over 20,000+ listings for 2010, the numbers are significantly lower at 15,000+ listings Year to Date for 2011. There was a reduction in the number of foreclosure listings driven in part by some of the legal challenges that banks faced about foreclosure proceedings and the MERS ruling.
2. Dollar Volume and Number of Homes Sold/Closed Increases!
There was a 3% increase in the number of homes sold in 2011 vs 2010 and a 6.1% increase in the dollar volume. This trend seems to indicate a stabilization of the marketplace over the past twelve months. If the overall economic situation with regards to jobs continues to improve even marginally, we can expect to see continued modest improvements in this area.
3. Overall Average Home Sale Price increases 3% this Year.
With so much dire economic news, it's sometimes difficult to hear the good news hidden within the chaos. Home sale prices have increased in spite of the foreclosure and short sale transactions which are still very much a part of the real estate landscape. This was accomplished within a context which included over 1400 homes that sold for less than $40,000. The increase was fueled at least in part by 88 homes which have Sold/Closed so far above $500,000.
Click this linkto view the raw data release courtesy of the Grand Rapids Association of REALTORS®
Grand Rapids MI Area Real Estate Statistics ~ Summer 2011
It´s been a pretty nice summer in West Michigan! There´s been more rain than normal which has sustained beautiful green lawns and fairly temperate weather. The other summer tradition which we have all come to expect is road construction.
With the harsh winters in Michigan, the roads take quite a beating with all the salt and sand poured on them to provide traction against slippery conditions. So summer is when we repair and renovate. Which also translates to possible travel delays as traffic is routed into single lanes. So depending on where you are in the traffic pattern, you might be having a uniquely different experience than a fellow driver on the other side of the expressway.
That pretty much sums up the picture with regard to the real estate market in Grand Rapids, Mi as well. The Spring market has had some unique peculiarities this year. Last year´s Home Buyer Tax Credit artificially increased home sales and subsequently, housing sales are lower this year than at the same time 12 months ago. However, a comparison to 2008 and 2009 numbers shows that home sales have actually improved from the crisis that occurred in the wider economy at that time.
New Listings for the month of July were down almost 23% from the previous year (1,255 for 2011 vs 1, 628 in 2010). An even greater differential was observed YTD with listing inventory down 28.5%. We have witnessed a slow down in the number of foreclosures coming to the market.
Another encouraging trend is the volume of Closed Transactions which are up by almost 45% from a year ago. The average days on the market for a successfully CLOSED transaction in July of 2011 was BELOW 90 days! However, it's important to note that for vacant properties, the average days on the market remains fairly high at over 300.
Average home Sale Price was also up by 17.1% with average home Sale Price also up by just under 19%. The average home Sale Price in July 2011 is now $136,183 and the average home Sale Price overall for the month is $132,289.
This Spring, we´ve witnessed a number of homes which have been on the market for some time receive offers and close. Investors are purchasing properties at bargain rates in the case of distress sales. The volume of homes sold through Short Sales has hovered between the 40 ? 45% range which is lower than many areas of the State.
Over the past six months, the second home and high end market has experienced some improvement and some area banks are offering good incentives for individuals involved in certain sectors of the healthcare industry.
There are a few distinct traits that characterize the process of successful sales. These are:
1. Correct Pricing
The market determines the value of the home. Distress sales have been a factor in pushing sales values in a downward direction. However, there is an increasing appreciation by many home buyers of the VALUE of a home which is not encumbered by a lengthy closing/negotiation process. And increasingly, there is a premium that home buyers are willing to pay to avoid potential costly delays.
2. Flexibility
Selling and/or buying a home today requires flexibility and patience. The more options you keep open, the more likely you are to obtain your goal. Home owners who are not maxed out on their mortgage have more flexibility for negotiation. Delays need not be Deal Killers if both parties can adapt to the obstacle course which can be a part of some Short Sale negotiations. Adopting a more relaxed approach towards the process removes a high degree of stress and allows clear minds to prevail.
3. Check Things Out before You Buy3;
Although it may not be possible to know everything about a purchase, the importance of a home inspection should not be underestimated. No home will be perfect. Knowing as much as possible is important in the negotiation process. Yes, this may create some delays, but it´s better to have a slow down in traffic as the system routes you through an obstacle course than to have a complete shut down due to an avoidable accident.
Grand Rapids MI Area Real Estate Statistics ~ November December 2010
What started with gently falling flakes which quickly melted has now tossed a snowscape blanket of brilliant white throughout Grand Rapids, MI. It´s beautiful! The first big snow fall of the year always is. I´m looking out my window and admiring how pristine everything looks. The trees which were devoid of leaves are now flecked with specks of white. Time to get out the Christmas tree and think about Christmas shopping!
Today, the numbers for November sales were released by the Grand Rapids Association of Realtors®. There´s definitely some news to bring good cheer to the season. November´s sales numbers have held steady, which is particularly significant given the drops in sales which the industry experienced in the summer months. Inventory remains high at 9.9 months of supply, but this is lower than the almost 12 months of supply that we had 12 months ago. Condo sales are a surprising bright spot with an increase in sales of 23% over the same period last year.
Progressing into December, we continue to see the number of distress sales and the percentage they consume of the market share inching upwards. In October, distress sales comprised of just under 45% of the market (44.8%) and November's numbers were 47.6. By early December, distress sales were 50% of the market. Although that number is likely to go down by the end of the month, it is an indicator that this type of transaction continues to exert a dominating influence on the real estate market in West Michigan. There is some good news here as well...a year ago, these figures were upwards of 60% of sales in December. At least the trend is in the right direction.
If you´re thinking of purchasing a condo, there are a lot of attractive options to look at. If you will require financing, make sure you check with your lender to ensure that your condo will qualify for the particular type of financing that you need. This is especially pertinent if you are going to be using an FHA type loan.
If you´re thinking about putting your home on the market, it´s important to understand the specific dynamics in your area and price range.
Every neighborhood in Grand Rapids has it´s own trends and these need to be understood in order to have a home listing enter onto the market successfully. Because Short Sales and Foreclosures are still a factor in our area, it´s critical that the impact of any home sales activity include this data and that home sellers understand the time it will take to market a home and what needs to be done to facilitate a Sale.
Grand Rapids Real Estate Statistics...June Report 2010
The real estate community in Grand Rapids, MI released the monthly report tracking real estate activity within the metropolis today. It was a mixed bag. In the good news column, the average home price has continued to rise in small increments. The average price of $117,061 is up 2.8% from June of 2009. Inventory levels have also remained fairly stable in spite of the potential for a significant influx of bank owned homes (sometimes referred to asShadow Inventory).
In a press release from the Grand Rapids Association of Realtors today, Julie Rietberg, CEO of the Association, commented on the June numbers.
"While home under $100,000 are still a majority of the sales, we are seeing an increase in the percentage of sales in the $250,000 to $500,000 homes." she said. "Homes in this price range can be considered ?move-up homes´ for the sellers of the homes that first time buyers purchase. This is a sign that there is strength in the West Michigan market beyond the first time home buyer tax credit. The number of homes sold in all categories above $250k outpaced that of 2009."
Against this back-drop, the number of distress sales also rose to approximately 50% of sales activity, a trend which has been creeping upwards since the beginning of the year. The impact of this rise can be seen in the decrease in total sales volume year to year. The total sales volume for June of 2008 and 2009 hovered within the range of $132 Million. Today, the number is closer to a little over $98 Million.
For home purchasers, these numbers when combined with historically low interest rates still represent an opportunity to invest in real estate . Home sellers should continue to be proactive in staging their homes to create a memorable experience during showing visits from potential buyers and must also be realistic in appreciating that pricing a home today requires an accurate evaluation of what the market value is within the context of your specific neighborhood.
Grand Rapids MI Area Real Estate Statistics ~ Spring 2010
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 $106,409vs $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, approximately80homes 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 Estateis 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 aboutperiwinkle.
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.
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.
Greg Carlson, President of the Grand Rapids Association of REALTORS®, commented on the May average home sales price increase, "In January of this year, over 69% of all home sales transactions were foreclosure/short sale. In May it was down to just over 53%," said Greg.
"When comparing home sale prices, 55% of the January 2009 dollar volume was foreclosure/short sales. In May, only 37.42% of the dollar volume was distressed properties. As we watch both of these numbers decrease we should see the average home sale price increase."
This is great news for Kent County and the individual home seller." Julie Rietberg, CEO of the Association, expanded on the bright spots in the market,
""We continue to see signs of stabilization in the housing market in Grand Rapids," said Julie, "We have to go back to 2005 to see a stronger first five months in the total number of single family homes sold." The number of total active residential listings remains virtually unchanged from 9,104 in May compared to 9,016 in April. Sales for the month of May were 1,012, down slightly (0.9%) from 1,021 compared to last month.
(article used w/permission from Grand Rapids Association of Realtors June 2009 Realtor Report)
Lola's thoughts...
We have definitely seen an increase in market activity within the past 90 days at Audu Real Estate. Inventory is moving and this is good news for home sellers. If you would like to sell your home, this may be one of the best recent opportunities to do so. All areas in the West Michigan community have not had the same increase so it is important to get a report which is customized for your situation. Contact us via e-mail @ info@auduhomes.com or call 616-791-0511.
April 2009 Market Statistics
According to data from the Grand Rapids Association of Realtors, home sales have climbed for the 4th consecutive month in 2009. April's sales volume was 21% higher than the reported activity in April of 2008. Overall inventory has remained pretty static with inventory levels of just over 9,000 homes in April compared to just under 9,000 homes in March.
Tempering this good news is the fact that sales volume is down...way down. The numbers indicate that overall sales volume is down approximately 20% from last year and 50% from about 5 years ago.
This is a sign of the times as pricing is still being impacted by a large volume of Short Sales and Foreclosures on the market (the numbers have hovered b/w 60% - 70% of sales) and the loss of job in the broader Michigan economy. The average sales price now stands at approximately $95,000, a significant decline from a few short years ago when prices were averaging in the mid to upper $120K range.
For new home buyers, a bright new spot in the horizon was unveiled yesterday by the Secretary of HUD, Shaun Donovan who indicated that HUD will permit it's lenders to monetize the $8,000 Tax Credit so that buyers can now use these funds toward a downpayment.
This monthly update is designed to give you a quick over-view of the Grand Rapids, Mi real estate market. The data is obtained from statistical analysis from the Grand Rapids Association of Realtors. This information is deemed reliable but is not guaranteed. Commentary about the data is the opinion of Lola Audu, Broker/Owner of Audu Real Estate in Grand Rapids, MI.
It´s been a pretty nice summer in West Michigan! There´s been more rain than normal which has sustained beautiful green lawns and fairly temperate weather. The other summer tradition which we have all come to expect is road construction.
The real estate community in Grand Rapids, MI released the monthly report tracking real estate activity within the metropolis today. It was a mixed bag. In the good news column, the average home price has continued to rise in small increments. The average price of $117,061 is up 2.8% from June of 2009. Inventory levels have also remained fairly stable in spite of the potential for a significant influx of bank owned homes (sometimes referred to as
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.