Since 2005, we have witnessed the average price of a single family home in Grand Rapids, Michigan drop from almost $122,000 to approximately just under $100,000 last year. Last year we also saw a marked increase in the number of foreclosures as the year ended with over 30% of closed sales that were either foreclosures or short sales.
While there has been a dramatic decline in prices, it has been possible to get some very good buys on homes. Earlier in the year, ABC News indicated that Grand Rapids was one of the most affordable places to live in the United States. Overall, less homes were sold in Grand Rapids Michigan this year than in the previous two years but almost twice as many homes were on the market as there were 5 years ago.
This is an indication to me that while home prices are dropping, a lot of home owners are still not willing to drop their prices and are holding on to them. In addition with tightening credit there are fewer buyers. I don't think the jury is out regarding what property values are going to do in Grand Rapids, Michigan just yet.