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H2 Real Estate's Blog

By Corby Horlings | Agent in Kent County, MI

Grand Rapids Market Update-May '11

Kent County Market Update- May '11

Hello Grand Rapids.  I think a legitimate concern in the real estate market these days is "how many foreclosures are yet to come or is the worst over yet?"  Well, I've said before that we've heard there are many in the hopper nationally but I'm skeptical about the surge of bank owned properties in Kent County still to come.  I came across this map of the country showing "Shadow Inventory".  This refers to properties nearing foreclosure and coming on the market. 

The report that this came from specifically mentioned Michigan is a state with low Shadow Inventory as you can see above.  Because states like Michigan, Arizona, & California have had so many foreclosures in the last few years, those troubled properties have made it to the market and it doesn't appear that we'll see a new wave coming.  Areas like the Northeast where shortsales/foreclosures are not as common in the last few years are now experiencing what we've already experienced in the last few years.  This map would have been very different and almost all red for MI, AZ, CA, and FL back then. 

Last time I mentioned the average sales price for residential homes/condos in Kent Co. dropped $3k or $112k as compared with the same month a year before.  I said I was shocked and hoped it was just an anomoly.  It turns out it wasn't because the average sales price for this April was just at $113k.  A quick look at some April stat's may cause some stress but could indicate we are at the bottom in some segments.  Total sales are down from April '10, the number of traditional sales is down as well.  In April '11 foreclosures/shortsales made up 33% of total sales, up 11% from last April.  In one years time, bank owned sales were up 31% while shortsales were down 33%.  Also, keep in mind last April many buyers rushed to buy because of the tax credit, which has been over with for over a year (can you believe it?!).  Inventory has crept up a little bit and time-supply of inventory has decreased.  This is still a balanced market with relatively flat values overall for Kent County.  For more info. about time-supply inventory in your sub-market shoot me an email at corbyhorlings@gmail.com

Many of our sellers have enjoyed this window of activity with quick sales in 2011!  Buyer's are still enjoying GREAT PRICING, LOW INTEREST RATES, AND GOOD CHOICES. Don't believe national reports...real estate is gaining momentum here in Kent County.  As always we are here to answer any question at 616-481-6690 or corbyhorlings@gmail.com

Comments

By Lloyd Reed,  Thu Jun 16 2011, 14:26
Good post Corby. Hopefully we will be able to get back to more normal market conditions within a few years.

Lloyd Reed
Broker / Owner
Home Run Real Estate
Grand Rapids, MI
http://www.HomeRunGR.info

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