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 as Shadow 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.