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 2 out of every 3 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.
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