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A Different Kind of Early Christmas...Frigid Air Blasts the Grand Rapids, MI Real Estate Market

By
Real Estate Broker/Owner with Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate

    Frigid Air Blanket in Grand Rapids Michigan

One thing that can always be said about Grand Rapids, Michigan is that there's a little of everything for everyone when it comes to the weather.  Today, winter snow lovers awoke to find that they had been blessed by the arrival of an early winter wonderland as a thick blanket of snow cover transformed everything into pristine whiteness.

This frigid blast of air matches the latest trends which have spread some icy tentacles across the Grand Rapids Michigan real estate marketplace too.  October was a weird month.  Watching the lurching, frantic financial roller coaster ride on Wall Street was the main event, but across the nation, the housing market was also plunging into new territory. 

This was certainly the case for Grand Rapids, Michigan where foreclosure numbers for October accelerated to account for just under 65% of the total number of sales for the month.  This was an an 80% increase over the same period of time last year!  Dollar volumes and total inventory also declined.  Given the incredible sequence of events on the national stage in which the auto industry was requesting an emergency bailout and the specter of thousands of more jobs potentially on the wire, it is perhaps remarkable that the results were not more grim.

The fact remains that homes are still selling.  In fact, during the period of ‘black October', over 700 homes sold and closed successfully.  Our office actually had one home receive 4 offers!  Last month, Iwrote a blog post about the steps that homeowners need to address if they intend to sell their homes in this market.  The advise given is still pertinent!

It's hard to predict exactly when this will end.  Prior to the financial meltdown in October, I was encouraged by the drop in inventory levels and the increase in home sales even if they were distress sales as this indicated that we were going through the mounds of excess inventory which had increased our absorption rates to nearly a year. 

There are still a lot of IF's.  IF automobile industry does NOT collapse entirely and send another huge wave of homes onto the market, we will have time to catch our breath and continue the recovery which was just underway.  IF new green jobs are introduced to take advantage of existing Michigan infrastructure and natural resources, the additional jobs will begin to nurse the flagging economy into a more stable status.

The thing about all the IF's is that they are entirely out of the control of the average person.  So, what's to be done?  Well, take care of the stuff you CAN take care of.

When winter visits the Grand Rapids, Michigan area, prudent individuals take cover and venture outside well protected.  This advise should also be heeded in shaky economic times.  Debt should be entered into very cautiously.  This is not the time to over spend on credit cards or to increase credit card debt.  House payments are a priority. 

If you're considering a purchase, take advantage of the extensive inventory and $7,500 tax credit if you're a new home buyer to purchase a good deal which requires no more than 30% of your gross income to finance.  Plan on putting money down.  Save for a down payment and spare yourself the grief of continually living on the edge.  If you'd like to sell your home, be realistic.  Over-pricing in this market will cost you much more than pricing your home competitively. 

What do I mean, well let's spell it out clearly...a year ago, the over-pricing penalty was about 25%, today it's closer to 40%.  That's a huge penalty to swallow for not responding to current market conditions and not worth it when you think of the fact that simply pricing your home correctly would have saved you time AND money.

To end on a good note, let me leave you with this number, 10,250+.  That's the number (give or take) of current listings on the market.  While still a hefty figure given somewhat anemic sales, it's 11% lower than the inventory that was on the market a year ago.  So, if you'd like to sell, there's somewhat less competition.  If you're interested in exploring your real estate selling or investment options further, please give Audu Real Estate a call.  We believe that adequate preparation and education can assist our clients in making prudent choices.

Related Posts:

The Secret Behind Multiple Offers on your home in Grand Rapids, MI

Lessons From a Rookie...How to Sell Your Home in 31 Days!

5 Things to Check Out BEFORE you Lease with an Option

Comments(15)

Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection

Lola - I won't complain about our weather considering the snow missed us.  It is terrific news to hear properties are moving in your area with some receiving multiple offers.

I suppose it would be a good time for homeowners to leave the shoe covers by the front door to be used during showings.

 

Nov 24, 2008 07:11 AM
Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth

The uncertainty is disconcerting I agree Lola. We may have hit bottom unless the Detroit automakers all go bankrupt. If that happens, more inventory in your market.

Nov 24, 2008 07:33 AM
Monika McGillicuddy
Berkshire Hathaway HomeServices Verani Realty - Hampstead, NH
Southern NH & the Seacoast Area

Oh boy that picture makes me feel so cold! I'm glad your market is not as bad as so many others! Mine is up and down but more down than up.

Nov 24, 2008 07:48 AM
Fran Gaspari
Patriot Land Transfer, Inc. - Limerick, PA
"The Title Man" - Title Insurance - PA & NJ

Lola,

Nice post! BTW, Keep that snow stuff in Michigan...don't send it east!!! Thanks,   Fran

Nov 24, 2008 07:57 AM
Lola Audu
Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate - Grand Rapids, MI
Audu Real Estate~Grand Rapids, MI ~Welcome Home!

Jennifer, thanks for stopping by.  The snow is gorgeous to look at...a little trickier to drive in!  Homes are STILL selling in West Michigan.  That's remarkably good news given the wider economy.  Mortgages are STILL available.  There are some grim realities which we have to contend with, but life goes on...

Nov 24, 2008 08:08 AM
Lola Audu
Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate - Grand Rapids, MI
Audu Real Estate~Grand Rapids, MI ~Welcome Home!

Gary, I'm thinking if the Detroit automakers go bankrupt, it's more inventory in just about EVERYONE's market.  The perfect storm isn't it...

Nov 24, 2008 08:17 AM
Lola Audu
Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate - Grand Rapids, MI
Audu Real Estate~Grand Rapids, MI ~Welcome Home!

Monika, my toes are cold! :)  Actually the white stuff is quite pretty.  Our market seemed like it might be starting a recovery until October.  I still think that we're ahead of the curve with regards to what the many sections of the rest of the country are going through.  West Michigan is different from some of the other parts of Michigan in that it is more diversified economically, but the auto industry is a big part of the Michigan economic scene in some way all across the state.

Nov 24, 2008 08:29 AM
Tim McAleece
Macatawa Bank - Grand Rapids, MI

Lola,

 

Thank you for introducing me to Active Rain.  I attended the WCR Meeting a couple weeks ago and watched your presentation.  Thank you for sharing your ideas for success!

Nov 24, 2008 10:44 AM
Terry & Bonnie Westbrook
Westbrook Realty Broker-Owner - Grand Rapids, MI
Westbrook Realty - Grand Rapids Forest Hills MI Re

Is it Spring yet?  It is pretty to look at but I do like the other three seasons. Looks like our market is going in the right direction as far as inventory is concerned now we could use a few more buyers and it would make Winter a little warmer.

Nov 24, 2008 12:04 PM
Lisa Hill
Florida Property Experts - Daytona Beach, FL
Daytona Beach Real Estate

Holy cow! I can't fathom that much snow at this time of year. Actually, the last tme I saw more than flurries in Daytona Beach was in 1976 or 78. I'm not sure which. But I remember there being a couple of inches of snow on the roof of the porch. So I took a broom and from my bedroom window, which was directly above the porch, I shoved the snow down onto my brother's head, who was sitting on the porch steps =D

Nov 24, 2008 03:39 PM
Tami Vroma
West Michigan Real Estate Specialist-Five Star Real Estate - Grand Haven, MI
Realtor, Grand Rapids MI Real Estate

Lola -  I commented on Facebook but wanted to say here how awesome the photos are!

Nov 25, 2008 08:09 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Lola I hope you keep that stuff over there, I can wait a few more weeks before I have to start shoveling it.

Nov 25, 2008 11:14 AM
Kate Elim
Dockside Realty - Spotsylvania, VA
Realtor 540-226-1964, Selling Homes & Land a

Hi Lola...Glad you took advantage of the photo op.

Hope more buyers take advantage of the large inventory and low interest rates.  Sellers should play attention to your advise about listing competitvely too.

Kate

Nov 25, 2008 11:40 AM
Lola Audu
Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate - Grand Rapids, MI
Audu Real Estate~Grand Rapids, MI ~Welcome Home!

Tim, Welcome to Active Rain!  I'm glad to see you blogging and commenting.  Thanks for taking a moment to stop here and read my blog.

Terry, we've got a long way before we see Spring again, but the Spring market is welcome to hit early as far as I'm concerned.  There are a lot of great buying opportunities out there right now!

Lisa...LOL, I can just imagine your brother's reaction!

Thank you Tammi

George, I understand. :)

Kate, Appreciate your stopping by.  Thanks.

Nov 25, 2008 11:47 AM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

It's good that some properties are selling.  However, my heart goes out to the millions of home owners who need or wish to sell but cannot and will not be able to for many years because they owe so much more than the market value of their homes. 

The trend is not attractive.

Nov 26, 2008 09:55 PM