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 trend even better for 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