Good News!

Rates are going down. Yippee Yeah!  This is Great News For home buyers in Grand Rapids, Michigan.  According to a January 9, 2007 article by Inman News, the Mortgage Bankers Association, a trade group for lenders indicates that this past week the Jump in applications for loans was a whopping 32%!  This is the highest one week increase for mortgage applications documented within the past 4 years.

The increase in mortgage applications is due to the fact that mortgage rates are now lower than 6%.  The rate on a 15 year note is now averaging 5.21%.  If you've got an adjustable rate mortgage, this is the time to get a fixed rate. It's also smart to review loan documents for your primary residence and home equity lines of credit.

It might be helpful to highlight a Brief Overview of the real estate market in the Greater Grand Rapids, Michigan Area over the past year.(2007)  The year started with average Listing Prices in the $157,000 range.  Sales Price Averages of 150,000 indicated that most home owners were selling within 95% of the Average Sale Price.  But what is not revealed in these numbers was the Cost in Time for home sellers.  With over 17 months of Inventory, just under 7% of the Available Inventory actually sold.  Successful Sales however averaged 109 days on the market.

The Best Time to have been a Seller in Grand Rapids, MI in 2007was between March ~ August.  Inventory levels for all listed properties dropped to 12 ~ 13 months and the Average Sales Prices were between $155,000 ~ $165,000.  Of course some areas were much higher and some lower, but this was the net effect.  In addition, close to 10% of Homes Listed were going into Escrow for Closing.

At years end, inventory levels rose dramatically.  By December, we had 19 months of Inventory in stock and the Average Sale Price has now fallen to $133,000.  So, What does this mean if you are a Buyer?  Well, NOW is a good time to see what's available for Sale when you consider the decrease in Interest Rates and the high number of homes available.  Don't waste this opportunity.  Take advantage of these Numbers to go shopping and Invest in you dreams.

*information regarding average home prices and inventory levels was obtained from the Grand Rapids Association of Realtors Sales & Inventory History.  The information is deemed reliable but not guaranteed.

To Read Other Articles in the Smart Buyers Series Click below...

home buyers: Michigan Buyers...When the Government Gives Free Money to Buy a House...Go Get IT!

home buyers: How To Avoid Paying Too Much for Your Next Home!

home buyers: How to Avoid Buying a Real Estate Lemon.

home buyers: Limitations Are Simply A Matter of How You See Things!

foreclosures: So, You Want A Great Deal on A Foreclosure...10 Power Tips for Success!

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