Grand Rapids Prices Up Amid Distressed Properties for Sale
The surge in Grand Rapids home prices in May despite the still high percentage of distressed properties for sale encouraged local realtors and sellers.
In May, the average sales prices was $118,665, a jump of 10 percent from one year earlier and the 8th consecutive increase on a year-over-year basis. Local realtors said that homes priced above $200,000 accounted for 15 percent of all homes sold in May, an increase of 10 percent from May last year. More homes priced in the $250,000 and $400,000 range were sold.
Some realtors even reported they sold homes worth between $900,000 to more than $1 million, the range which had seen no sales for a long time.
What encouraged most realtors and sellers was the fact that home prices increased despite the still high percentage of distressed properties for sale. In May, over 50 percent of house sales were foreclosure sales or short sales. This indicates that the local market is slowly gaining strength in resisting the downward price effects of Grand Rapids foreclosed homes for sale.
The number of foreclosure homes in Michigan also increased in April to 6,252, up by 9.4 percent from 5,715 in March. For those planning to buy foreclosure homes, they can find a lot in Michigan as the total of homes that became REO in the first four months of this year was 24,856 units.
Despite slowing down in March, foreclosure activity in Michigan had a resurgence in April. There were 19,173 homes that got hit with notices in April, up by 8.3 percent from 17,700 in March. All in all, there were nearly 65,000 Michigan homes put into foreclosure in the first 4 months of the year.
With home prices starting to rise in Grand Rapids in May, housing advocates are hoping that this will encourage investors to step up their purchase of distressed properties for sale and help absorb the distressed inventory.
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Original Post: Grand Rapids Prices Up Amid Distressed Properties for Sale on ForeclosureDeals.com.
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