If the beginning of the year 2009 was somewhat tepid for real estate sales in Grand Rapids, Michigan…things changed in March. March roared in with numbers which had many in the real estate community chattering with delight.
Activity increased with home buyers sending sales into an upward spiral which eclipsed the same period of time in March of 2008 by 19.46%! For agents on the ground working with home buyers, this translated into multiple offers or Sold signs on many desirable properties.
In addition, although foreclosures and short sales continued to depress pricing, the overall number of homes for sale was down by 12.8% (10,301 active listings in 2008 vs 8,982 in 2009) and the inventory racks (also known as the absorption rate) decreased from 12.69 months of housing inventory to 9.26 months.
For home sellers, the bottom line view still hurts to look at. In March of 2008, the average single family home was $120,000, this year it’s about $100,000…a whopping 20% drop! Ouch!
So what’s the best course of action if you’re in the real estate market of 2009. Well, it depends on which side of the market you’re putting a stake in the ground for.
If you’re buying a home, the combination of record low prices, great interest rates, good inventory and the tax credit make a very strong case taking a good look at your options, doing your research and acting responsibly and decisively. Nothing lasts forever…this perfect storm won’t either.
If you’re selling your home, step back and take a birds eye view of your surroundings. You might be surprised by how much competition is surrounding your dwelling. Study the numbers intently. This starts by ordering an appraisal or commissioning a well prepared Comparative Market Analysis by a seasoned real estate professional.
Be realistic; you’re probably not going to make a ‘killing’ in the profit department, but if you play your cards right, you don’t have to get taken to the cleaners either. Homes which are priced right are selling. It’s just that the term ‘priced right’ is a moving target.
If you’d like a more detailed analysis of your specific neighborhood, contact me at firstname.lastname@example.org. It’s important to note that the stats for every neighborhood in Grand Rapids, MI and the surrounding areas are unique. This is not about a one size fits all approach.
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