Spring brings the urge to buy a new home or a larger home.
Lots of internet searches for the perfect home are being done at midnight
in the robe & slippers, here in Grand Rapids Michigan, as elsewhere around
The mortgage rates are low, the apartment idea was great but now you
may have decided you want a piece of the American Dream. You want your
own garage, your own deck for barbecues and decorate the yard with flamingos,
if you choose to do so.
Let’s take a peek at that midnight computer search & see what the
average Grand Rapids consumer is searching for……….
I like to call this the “Dream Home Wish List.”
It seems buyers are ever optimistic and consistently put these parameters
in for top home search requirements, year after year, here in Grand Rapids.
|Price||90,000 – 99,999|
|Number of Bedrooms||At Least 3|
|Number of Baths||At Least 2|
|Garage Size||At Least 2 Stalls|
|Square Feet||4,000 or more|
|School District||Forest Hills|
|Project Name||EXCLUDE ALL CONDOS|
|Age||5 to 25 Years|
|Riparian Rights||Lake Front/Private|
|Acreage||1 to 5|
|Lake Name||Lake Michigan|
Anyone would buy this house in a nano-second, if it existed,
………. but it doesn’t. A 4000 sq ft ranch house in Forest Hills Schools
with acreage alone would have you in the higher price brackets [300K-500K]
immediately. A 4000 sq ft ranch house on Lake Michigan is in the multi-million
dollar category. So much for the Dream home for most of us…..let’s go back to reality.
So just what did the average home buyer purchase last year and this year
in the Grand Rapids area?
Last Year in 2007:
- 3159 households bought a house for $99,999 or under
- 3278 households bought a house for $100,000 – 149,999
- 1846 households bought a house for $150,000 – 199,999
First Quarter 2008:
- 1409 households bought a house for $99,999 or under
- 754 households bought a house for $ $100,000 – 149,999
- 420 households bought a house for $ 150,000 – 199,999
It looks like prices have dropped dramatically and more people are buying
in the lowest price bracket of under $99,999. But these statistics are not
comparable. About half of the homes selling for under $100,000 in 2008 are
bank foreclosures. The homes’ value and price sold are not the same.
Please refer to my other posts on bank foreclosures for the reasons:
The average foreclosure price is $78,400 compared to the overall
average home sale price of $119,600.
When the short sales are taken out of the total, the average home
sale price is now $160,900.
Bank foreclosure houses are typically not priced to compare to the
homes in the neighborhood in good condition. The foreclosure homes are
usually abused and need lots of work to be similar in value to other houses
in the neighborhood. Some need literally everything to be habitable!!
Most households ended up spending more than they thought they would.
To get the home of their dreams, they spent between $100,00
and $200,00, on average.
If a first home or larger home is in the plans for you, we would
be honored to assist you in the process of purchasing the
“home of your dreams”.
Contact me: 1-888-240-1968 x 0 toll free
Website url: Terry Westbrook.com
Copyright by Terry Westbrook 2008