As the inventory of existing homes seeks a new normal, we find that the
distressed properties are a big portion of our market. Following the trends
in this area can give us insight into the future. The following chart shows
how they affect our market every month. And I see some encouraging information.
Percentage of Foreclosures/Short Sales of Grand Rapids sold properties.
Looking at the chart you can see that Foreclosures & Short Sales control
over 59% of our current market volume in January 2010 but the $ Dollar percentage
is only 44%. I am guessing the dollar percentage of total sales will increase over
time so the short sales and foreclosures will not have as much of an effect on
current traditional (non-foreclosure + short sale) sales.
Experts in the financial markets have written extensively about the increase coming
in the foreclosure market, last month figures were estimated to be 3 million or more
homes that are facing foreclosure in U.S. in the next 6-12 months.
So, will a buyer always go for the distressed sale home over the traditional sale?
Apparently not. We hear from our buyer clients over and over that they
DO NOT WANT TO DO REPAIRS or UPDATING. They want to purchase a
home and get on with their life - not devote 6 months to 12 months of their
spare time and money on painting, repairs and updating. If they can buy a home
that is in good condition and is a foreclosure or short sale home, great! But that is
not usually the case.
We have seen that banks are starting to do basic repairs and updates before
putting homes on our local market. What a difference this makes to first time
buyers who don't have money for extra repairs and updates.
_____________________________________________________________________________________________________
The authors of the this blog write about Grand Rapids Real Estate, the Greater Grand Rapids MI area, and what it is like to live in West Michigan. Grand Rapids Michigan is a vibrant, growing metropolitan area with a diverse business community, great medical research & services, numerous universities, plus lively arts and entertainment of all kinds.
We believe: Grand Rapids is a Great Place to Live!
Westbrook Realty Grand Rapids MI Real Estate
Contact Terry 616-292-7263
Terry and Bonnie, that chart is really pretty sobering! that is a huge percentage of the sales. Wow.
I'm seeing the same thing in Sacramento. Buyers want turnkey homes. But they're not willing to pay much more than the price of a foreclosure or a short sale to get them.