The Truth is Very Powerful!  It's more powerful than Spin.  The Truth about the Grand Rapids, Michigan housing market is the primary means by which home owners can escape being held captive to the whims and negative judgements of dooms day predictors and naysayers. 

In the housing market in Grand Rapids, Mi this year, the Truth has sometimes seemed obscured by all the negative news.  Well, it's about the end of year and time to take a look at the TRUE numbers for sales in and around the Grand Rapids area.

Here's a Summary of the Housing Market in Grand Rapids, Michigan.  Just over 10,116+ homes have Sold so far this year. This was against a backdrop of approximately 34,000 Listings for the year. Over half of the sales for the entire Grand Rapids, Michigan real estate board were priced below $150,000.

On the average it took 253 days to get to the Closing Table. But those who did at the beginning of year on the average got approximately 96% of their Asking Price. The average list price in the Greater Grand Rapids area was in the low $140,000's and the average Sold Price $137,000.

Some homeowners took a risky gamble this year and priced their homes above what the current housing market could support. You may want to refer to my earlier post entitled: "What's It Gonna Cost to Sell My Grand Rapids, Michigan Home?" to  understand what happened to those who made this mistake.

As the year progressed, home owners became much more realistic about adjustments that were necessary to Sell a Home Successfully.  Subsequently, reductions were made in pricing and the average days on the market until close dropped along with the average list price. Most area sales ranged between 10% -15% less than what a similar home would have sold for last year. Hardest hit were those who had purchased their homes in 2004 or later. 

Short Sales were a big deal this year.  At the beginning of the year, the number of Short Sales in the Grand Rapids, Michigan area ranged between 14% ~ 20%.  By the end of the year 30% ~ 40% of our Market Share was dominated by homes in Foreclosure or Short Sale. At Audu Real Estate we succesfully negotiated a number of Short Sales which allowed home owners to release a tremendous amount of debt and/or renegotiate the terms of their loan agreements.

So, the TRUTH about the Grand Rapids, Michigan housing market is that homes are Selling. To date, the total number of transactions successfully processed in 2007 is about 92% of what was successfully processed in 2006.  Given the issues that have plagued the market with reference to the substantial credit crunch, this is remarkable. Realistic, Motivated home owners can expect to sell their homes in 2008. To Successfully Sell Your Home these are some things you can do:

1.  Pricing Your Home Correctly the First Time! 

The market is not forgiving of error.  Adjust quickly when it tells you that you've missed the mark. 

2.  Stage Your Home to Sell!

Your home is in compeition with the largest number of listings in the history of the Grand Rapids real estate board. Everything you can do to make your home stand out will help. Showing well starts with Cleaning to the Max.  I've heard it referred to as Q-Tip Clean.  Clean, Attractive homes sell faster and for money.

3.  Try to Make it Work!

An offer may come in which feels like an insult.  Don't take it personally.  It's better to have a bird in hand than two in the field...as the saying goes.  Be creative with a counter.  Add incentives which make it hard for the buyer to walk away completely like giving a little on your price for a faster closing date or throwing in appliances and a Home Warranty for acceptance on your counter-offer.

In Summary...

There were some interesting variations in the report.  For instance, East Grand Rapids home prices held steady.  Although this area has traditionally had good appreciation, home owners were probably thankful not to have the double digit losses in home equity that other areas experienced.  In addition, an area closer to the downtown Grand Rapids area actually had a 6% increase. 

It's important to understand that average numbers will not provide the complete detail for any specific area.  If you would like detailed information about your specific neighborhood or community, please contact us.  e-mail:  info@auduhomes.com.

Copyright 2007 Audu Real Estate  All Rights Reserved

 Click Here to Read More about Grand Rapids, Michigan

Grand Rapids, Michigan Prepares for the Next WAVE!

Much of the news in Grand Rapids, Michigan recently has focused on what's leaving the State.  The list has been quite extensive...people (Michigan had more people leave than move to the State last year), factories and jobs, and this past week, a sad new entry...Heartwell Mortgage Company, a longtime Grand Rapids mortgage lender announced that it is closing its doors.

You can imagine my surprise to experience a totally different side of this transition process this week.  I was involved in assisting a client to find temporary housing during a relocation move...TO GRAND RAPIDS, MICHIGAN!  As we toured apartment complexes which had furnished rental units, we visited the Woodland Creek Apartment complex.  As I drove up to the leasing office, I could tell they were busy...they were loading clients to go out on tour.  But I didn't know how busy.

When we finally met with the leasing agent who handled the short term rentals, she indicated that out of 60 units, only 1 was available.  I was shocked.  I asked her who was renting all these units.  She indicate that individuals who were relocating TO WEST MICHIGAN were largely responsible for the upsurge.  This was quite contrary to what I expected to hear.

Later that afternoon, over an early dinner with our clients, we had a fascinating discussion.  My client used a term that I had not heard before.  He indicated that Michigan, particularly West Michigan is poised for the 2nd Wave.  Understandably curious, I probed further.  What unfolded was educational...very, very educational.

It was a mini history lesson.  He began by explaining the rational by which companies make decisions regarding location and the viability of long term profits. 

Real estate is an important component in this mix.  In areas which have had record breaking appreciation rates, it becomes cost prohibitive for companies to bring in new hires and still remain competitive.  Consequently, the search begins to find real estate which will support the necessary framework for expansion. 

West Michigan is now considered a viable prospect for these reasons.  The cost of living in West Michigan is very reasonable.  We have a hardworking job core, many of whom are skilled laborers.  The jobs they used to do are no longer available, hence the painful transition which has forced hundred of thousands to leave the state to seek their fortunes elsewhere.  But many workers are also taking advantage of lay-off packages to get re-trained in new fields and technologies.  A quick drive through the downtown area of Grand Rapids, Michigan reveals that something is percolating under the surface.  There are several major projects going on and the development of the bio tech industry is rapidly expanding.

Grand Rapids, Michigan is slated to be the site of the first Green Built Hospital (Metropolitan Hospital's New Campus) and the first Green Built Museum (the New Grand Rapids Arts Museum) in the state.  In fact, it is estimated that Grand Rapids, Michigan has more more square footage per capita under LEED certification than any other city in the United States. What's even more extraordinary is that the leadership in donations and vision has been through the efforts of private donors and corporations in conjuction with the state government.  The people of Grand Rapids have decided to invest in their future rather than let events chart an uncertain course.  These are pretty heady accomplishments and are pre-views for the progressive attitude which is emerging in spite of the challenges we are undergoing.

I found a very interesting press release from UC Berkley about the concept of the 2nd Wave.  The author Kathleen Maclay discusses the traditional meaning associated with the 2nd Wave which usually refers to job outsourcing...which we have experienced in record numbers through the loss of manufacturing jobs.  However, Maclay ends the article with a quote that may well be describing what is poised to occur in Michigan.  Here it is:  (keep in mind this article was written in 2003)

• But all is not necessarily gloomy for the United States' economy, the researchers say.
• For example, outsourcing of service jobs may prove more costly to the economy than the earlier wave of manufacturing outsourcing, conclude Kroll and Bardhan. This, they say, would be the case if the economy does not generate enough technological growth to replace the jobs lost with new ones and workers eventually find new work in lower-wage occupations.
• "On the other hand," says Bardhan, "continuing innovation and technological advances could allow the U.S. and California economies to keep the 'cream' of new development and higher-value-added jobs at home, while more routine activities are outsourced."
• This was the pattern for high-tech manufacturing outsourcing of California's low-wage assembly jobs during a downturn that brought productivity increases in its wake and a wide range of opportunities in new service jobs, he said

 I'm excited about the prospects and opportunities that will emerge from the 2nd Wave...I think it's coming.  Are you prepared to ride it for all it's worth?  Governor Granholm recently named Grand Rapids, Michigan as a recipient for a $100,000 Grant to fund urban redevelopment as a Cool City.  The revitalization of urban communities is transforming the nature of life in the downtown area.  This 2nd Wave is poised to take Cool to a Whole New Level!

Checking the Housing Market Temperature in Grand Rapids, Michigan!

We're at the halfway point for the year & it has come mighty quickly!  This year, for the first time, the Grand Rapids, Real Estate Association of Realtors(GRAR) launched an ad campaign with the focus "Now is The Right Time to Buy!" 

While advertising does not create instantaneous results, it is helpful to see how our market is comparing with the newly revised market predictions form the National Association of Realtors. (NAR)  First, let's take a look at the local scene.

So far, this year, the highest sales price in the Grand Rapids, Michigan School District has been $479,000 which was just about 1/2 the price of the highest sale price for East Grand Rapids, Michigan ($1,375,000) and 5-10% lower than some neighboring communities such as Hastings, Michigan where the highest sales prices was $488,000 or Jenison, Michigan school district where the highest sales price was $520,000.  To Search for Homes by School District click here...

Average sales prices for 2007 have hovered around $108,000 with the median price at $105,000.  We're still lagging behind last year in terms of average sales price & some other key indicators. 

Last year, the average home in Grand Rapids, Schools sold for approximately $117,000 and the median was $114,000.  That translates to a 7.6% Decline in Average Home Values in the Grand Rapids school district over the past year.  

In terms of the Number of Units...at the 1/2 Mark of the Year,  there have been just slightly less than 1/2 the number of homes sold over the entirety of last year. The number of listings for the entire Board is up this year by about 1300+ units for statistics compiled up to May 2007, but the Sales Price aggregate for Listings is below last years numbers significantly.

This is NOT the time to over-price a home!  Take a look at the graph below...The yellow bars correspond to 2007.  If a home was priced correctly and on the market for a week or less in 2006 & 2007, most homeowners got pretty much what they were asking for.  If the home was on the market for over 90 days, Deep Discounts kicked in if homeowners had to sell their homes.  The price correction for over-pricing is even STEEPER than it was for 2006...We're talking discounts of up to 25%!  Ouch!

How Does Grand Rapids Fare...

in comparison to National Statistics?

According to the National Association of Realtors Housing Market Focus, the revised predictions call for a 6.4% drop nationwide in existing home sales. At the beginning of the year, the forecast had indicated a stabilization of the market, with a moderate increase in sales. 

Factors which have impacted the forecast nationwide include the crisis in the sub-prime lending industry.  In the greater Grand Rapids, Michigan area, this has been compounded by continued sluggish growth in the economy due to job losses. 

To obtain a detailed report on the market in your particular city or West Michigan community, contact us at info@auduhomes.com.

*Information is obtained from the statistical reports compiled by GRAR & is deemed to be accurate but not guaranteed.

Copyright 2007 Audu Homes All Rights Reserved