In researching comparisons of several areas around Grand Rapids in 2007 and 2008,
I was looking for the trends we all watch:
Some areas have had quite a change, others have not been affected by market conditions
nearly as noticeably.
City Units sold Avg Sales Price Cost per Sq ft Days on Market
Grand Rapids Schools
2007 410 $104,656 $77.23 100
2008 423 $ 75,218 $54.53 96
Forest Hills Schools
2007 136 $259,484 $126.79 119
2008 104 $284,891 $125.47 112
East Grand Rapids Schools
2007 49 $327,774 $129.39 113
2008 27 $202,699 $114.65 83
Rockford Schools
2007 108 $208,163 $126.05 113
2008 92 $199,663 $118,87 127
Kentwood Schools
2007 113 $146,792 $105.37 113
2008 116 $137,634 $90.96 116
Caledonia Schools
2007 54 $214,729 $121.01 115
2008 40 $176,049 $98.89 142
Byron Center Schools
2007 38 $192,518 $126.04 115
2008 38 $191,797 $121.06 97
NOW, WHAT DOES THIS ALL MEAN FOR GRAND RAPIDS HOMES?
On average the same 1800 square foot home is selling for $26,595 less this year over last year.
From other analysis I have done, most of the price reductions have been from the foreclosure market.
In fact, if you take the foreclosures and short sales out of the mix, the average price in the area has
actually gone up $2,000 since last year. Days on the market have fallen by 2 days and number of units
for sale has risen just over 200 units, to 10,301 as of 3/31/2008.
I see the market remaining similar without much change for the rest of this year. Until we get rid of
the foreclosure homes, we will not see the typical home value gains we have had in past years.
This Market is a Buyers Market - if you are willing to take on a foreclosure and all it's issues.
I predict the reductions in Grand Rapids home pricing are nearing an end and we will see not only
Grand Rapids home prices rising soon but interest rates also.
If you are a buyer "NOW IS THE TIME" to BUY to secure the "low interest rates & low price" combination.
Copyright by Terry Westbrook 2008
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Hey, you're psychic. According to our favorite mortgage guy, interest rates HAVE gone up.
Karen: Regardless of the market conditions as activity increases the rates have a tendency to rise. For every 1/4% in interest rate increase is the same as a 5,000 price increase.
Excellent analysis Terry. The drop in prices for Grand Rapids, East Grand Rapids & Caledonia is noteworthy! I was struck by the fact that not every area has been affected and in fact Forest Hills has increased. I'd agree with you that this Buyer's Market may be nearing a bottom. We're seeing several homes with mutliple offer situations when they are priced right. Karen's point about the mortgage rates is important too.
Lola: We need to see a few buyers lose homes to low offers and they will realize the time for getting a great deal is nearing an end. Even though Forest Hills did have an average price increase the cost per square foot did drop a small amount.
Excellent report and so true!
Now is the time to buy, per the low rates and the low purchase prices!
Kirk: Looks like rates are starting to tick up what are they waiting for?