Real Estate Market Recovery Facts or Fiction is a real question for every home seller and buyer to consider.
Let's be honest, not all cities reflect the exact housing market issues nor do states reflect Michigan's job or housing environment. I live on the in what is called, by media outlet's the most productive side of Michigan. West Michigan and the Grand Rapids area has consistently our performed the rest of the state in job generation and home sales.
That being said, housing statistics are only as good as the reliability of those reporting the numbers. I haven't reproduced the numbers into my own charts. I have not changed one number. I wanted you to share what you see and how the housing market is from your eyes.
Here is what we have been told about the numbers.
- The housing market is getting better.
- Fewer homes are for sale therefore; we are in recovery.
- Home sell prices are stabilizing and in many cases going up!
- The Market isn't getting better and not much worse either. It is bumping along the bottom waiting for jobs creation to provide income for those that would like to buy a home. Of course you have to know those that find a new job won't have enough time established with their new employer to purchase a home within the first year if they have been unemployed for any length of time.
- Fewer homes are for sale is absolutely true. The reason is certainly debatable. Like unemployment, as those unemployed run out of benefits and can not find a job, the rate for seeking unemployment drops. Meaning they can not file and have given up on job searching. They have lowered themselves because of circumstances to public assistance. What else can you expect them to do? They have to survive and provide for themselves and a family if they have one. The housing market shrinks in much the same way. Seller's give up or reach a price point where they can no longer afford to sell without contributing money out of pocket to pay off their mortgage at the time of sale. This accounts for much of the housing availability drop, in my estimation. Also mixed in, is the foreclosures that come off the market as listed homes for sale. They may go back on the market or the bank may choose to sell them through their own real estate marketing arm.
- Home prices stabilizing may be another myth. If you look at the cost per square foot or the average sale price of a home that fact is not evident.