Grand Rapids Michigan Real Estate: Foreclosures, Short Sales Dominate

Grand Rapids Michigan Real Estate:  Foreclosures, Short Sales Dominate

As the inventory of existing homes seeks a new normal, we find that the

distressed properties are a big portion of our market.  Following the trends

in this area can give us insight into the future. The following chart shows

how they affect our market every month. And I see some encouraging

information.

HUD home notice

Percentage of Foreclosures/Short Sales of Grand Rapids sold properties.

Short Sales and Foreclosures Grand Rapids mi 2009

Looking at the chart you can see that Foreclosures & Short Sales control

over 59% of our current market volume in January 2010 but the $ Dollar

percentage is only 44%. I am guessing the dollar percentage of total sales

will increase over time so the short sales and foreclosures will not have

as much of an effect on current  traditional (non-foreclosure + short sale)

sales.

Experts in the financial markets have written extensively about the increase

coming in the foreclosure market, last month figures were estimated to be

3 million or more homes that are facing foreclosure in U.S. in the next

6-12 months.

G R MI home

So, will a buyer always go for the distressed sale home over the traditional sale?

Apparently not.  We hear from our buyer clients over and over that they

DO NOT WANT TO DO REPAIRS or UPDATING. They want to purchase a

home and get on with their life – not devote 6 months to 12 months of their

spare time and money on painting, repairs and updating. If they can buy a

home that is in good condition and is a foreclosure or short sale home, great!

But that is not usually the case.


We have seen that banks are starting to do basic repairs and updates before

putting homes on our local market.  What a difference this makes to first time

buyers who don’t have money for extra repairs and updates.

_____________________________________________________________________________________________________

The authors of the this blog write about Grand Rapids Real Estate,

the Greater Grand Rapids MI area, and what it is like to live in West

Michigan. Grand Rapids Michigan is a vibrant, growing metropolitan

area with a diverse business community, great medical research & services,

numerous universities,plus lively arts and entertainment of all kinds.

We believe: Grand Rapids is a Great Place to Live!

ar125812212017642 Forest Hills Michigan Neighborhood Real Estate Market Report – Watermark Residences Nov 2010 ar125812218972939 Forest Hills Michigan Neighborhood Real Estate Market Report – Watermark Residences Nov 2010 ar125812225271331 Forest Hills Michigan Neighborhood Real Estate Market Report – Watermark Residences Nov 2010

Westbrook Realty Grand Rapids MI Real Estate

Contact Terry   616-292-7263

Foreclosures and Short Sales Affecting Grand Rapids Housing Market

Foreclosures and Short Sales Affecting Grand Rapids Housing Market

We have been tracking the activity on Short Sales and Foreclosures

of our local Grand Rapids market for some time.  They have become

a large share of our housing market here in West Michigan and sellers

must understand the fact that they have to compete with this segment

of the market and will for the next few years.

Experts in the financial markets have written extensively about the

increase in foreclosures, last month figures were estimated to be 3

million or more homes that are facing foreclosure in U.S. in the next

6-12 months.



1) What are buyers looking for when they search for a home?

Selection search Criteria Grand Rapids MI

As you can see from the graph above, this is the order of importance buyers

put in their home searches:

  1. Square Footage
  2. Bedrooms
  3. Baths
  4. Price

Price is number 4 behind Square Footage, Bedrooms, and Baths. So, will a

buyer always go for the distressed sale home over the traditional sale?

Apparently not.  We hear from our buyer clients  over and over that they

DO NOT WANT TO DO REPAIRS or UPDATING. They want to purchase a

home and get on with their life – not devote 6 months to 12 months of their

spare time and money on painting, repairs and updating.

BUT Price is the ultimate point of competition.


Price is the only thing left when you have 30 similar homes on the market

competing for the same buyers. Supply and Demand will continue to rule

the real estate housing market in the foreseeable future.

_____________________________________________________________________________________________________

The authors of the this blog write about Grand Rapids Real Estate,

the Greater Grand Rapids MI area, and what it is like to live in West

Michigan. Grand Rapids Michigan is a vibrant, growing metropolitan

area with a diverse business community, great medical research & services,

numerous universities,plus lively arts and entertainment of all kinds.

We believe: Grand Rapids is a Great Place to Live!

ar125812212017642 Forest Hills Michigan Neighborhood Real Estate Market Report – Watermark Residences Nov 2010 ar125812218972939 Forest Hills Michigan Neighborhood Real Estate Market Report – Watermark Residences Nov 2010 ar125812225271331 Forest Hills Michigan Neighborhood Real Estate Market Report – Watermark Residences Nov 2010

Westbrook Realty Grand Rapids MI Real Estate

Contact Terry   616-292-7263