Rates are going down. Yippee Yeah! This is Great News For home buyers in Grand Rapids, Michigan. According to a January 9, 2007 article by Inman News, the Mortgage Bankers Association, a trade group for lenders indicates that this past week the Jump in applications for loans was a whopping 32%! This is the highest one week increase for mortgage applications documented within the past 4 years.
The increase in mortgage applications is due to the fact that mortgage rates are now lower than 6%. The rate on a 15 year note is now averaging 5.21%. If you've got an adjustable rate mortgage, this is the time to get a fixed rate. It's also smart to review loan documents for your primary residence and home equity lines of credit.
It might be helpful to highlight a Brief Overview of the real estate market in the Greater Grand Rapids, Michigan Area over the past year.(2007) The year started with average Listing Prices in the $157,000 range. Sales Price Averages of 150,000 indicated that most home owners were selling within 95% of the Average Sale Price. But what is not revealed in these numbers was the Cost in Time for home sellers. With over 17 months of Inventory, just under 7% of the Available Inventory actually sold. Successful Sales however averaged 109 days on the market.
The Best Time to have been a Seller in Grand Rapids, MI in 2007was between March ~ August. Inventory levels for all listed properties dropped to 12 ~ 13 months and the Average Sales Prices were between $155,000 ~ $165,000. Of course some areas were much higher and some lower, but this was the net effect. In addition, close to 10% of Homes Listed were going into Escrow for Closing.
At years end, inventory levels rose dramatically. By December, we had 19 months of Inventory in stock and the Average Sale Price has now fallen to $133,000. So, What does this mean if you are a Buyer? Well, NOW is a good time to see what's available for Sale when you consider the decrease in Interest Rates and the high number of homes available. Don't waste this opportunity. Take advantage of these Numbers to go shopping and Invest in your dreams.
*information regarding average home prices and inventory levels was obtained from the Grand Rapids Association of Realtors Sales & Inventory History. The information is deemed reliable but not guaranteed.
To Read Other Articles in the Smart Home Buyers Series Click below...
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Lola- That is great news for buyers! What great prices there are in Grand Rapids! Katerina
Some things never change. Every year I tell agents to sell what you can from March to August because the slow time is coming in September and save your money. Some listen, some don't.
Lenn my best months in real estate have been October. We have beautiful fall foliage and people flock to the area and buy homes while they are here.
I am thinking that jumbo loans will one day be next. That would certainly be what is affecting us here. Glad to hear the good news in Michigan. That's where the in laws live.
Lola,
What the MBA reported is pure music to many ears. Of course we still have to be careful since it's only one week, but if a trend, even a gradual one, develops then the buyers figure it's time to act and get a low-interest mortgage.
Lola...It's busy up here...rates are good and finally we have buyers who are buying. Yippee....
Katerina, Grand Rapids, Michigan was actually dubbed "One of the Most Affordable Places to Live" in a story which I believe aired on ABC earlier this year. The schools are great, we've got wonderful selections for shopping and restaurants and a lot green space... and Affordable Home Prices. What's not to love! :)
Lenn, Those months were definitely the best months for selling in Grand Rapids. We were thankful to have sold homes throughout the year right up into December. But looking at those numbers today was definitely an eye opener. It also shows that home owners would do well to list their homes in January to March when the first wave of buyers begin to do their looking prior to making their selections.
That's interesting Vicky. It just shows that each area and individual is different. If we keep track of our individual statistics, they will reveal the patterns which pertain to us.
Greg, I know there's been a lot of talk about jumbo loans...so far, I haven't heard any final conclusions. But even jumbo loan rates will probably be impacted somewhat by reductions I would think.
Esko, it's a great trend which I too hope will continue...Thanks for stopping by and enjoying the "music" of some good news for the real estate industry.:)
Yeah for you Monika! Here's to a very successful year. :)
Lola, I've been so busy hadn't read Inman, thanks for updating us here.
Lola, Glad to hear that buyers are finally making a move.
Missy, it was on their newsfeed today.
Gary, I am too. The weather has been unusually warm, so it has made it easier to look at homes too.
Hi Lola: Current MSHDA rates are around 5.25% - talk about a deal! Even though this is just a product in Michigan, other states may have a similar program. Now IS the time to buy:)
And the rates will keep falling until the ball starts rolling again. And it will.
Lola, it sounds like this is a perfect time to buy in your community. I hope your clients take advantage of the buyer's market and interest rates!
Lola, At least this is one area of good news. Mortgage rates are attractive.
Ed, You're right...MSHDA Rates are Terrific! I would encourage people who have adjustable rates on their home equity loans to also talk with someone. So many people have rates that are adjusting higher this year, so hopefully, this trend will hold steady for a while.
Hi Robert...Great Rates & Tons of Inventory...That sounds like a good sign to me!
Diane, Sometimes I find a home and its such a good deal that I have to begin dialing clients to let them know about it! There are some excellent opprotunities in Grand Rapids, Michigan right now if you know where and how to look. It's truly exciting in many ways.