Written by Sondra TenClay Coldwell Banker AJS Schmidt Mar. 3, 2013. Assisting Buyers and Sellers with home transactions in Grand Rapids, MI and throughout West Michigan.
In my last update I indicated that the market was quickly turning and prices were increasing while days on market were decreasing steadily for homes in the Greater Grand Rapids market. The trend has continued which has brought some interesting challenges along with it. In January the average residential property was on the market 115 days which means we only have 3.4 months of inventory currently, this is the lowest months of inventory that we have had in a very long time and is beginning to impact pricing. Below is a chart showing how time on market averages impacts our market.
The average home sale price for January sales was $137,083 vs.$114, 236 for January of 2012, a 20% increase and another indication of the reduced supply beginning to impact pricing. Keep in mind that this does not reflect a percentage of appreciation but rather a year over year one month sale price average.
Our market continues to mirror most national trends as indicated in the graph above. Every real estate market is very local-even within our own area, with some school districts and municipalities having a significantly lower inventory.
Buyers who wait for a more favorable time to buy may have already waited too long. Interest rates are slowly rising as demand increases and prices will continue to increase as long as inventory remains tight.
If you are considering selling it may be the perfect time for you to put your home on the market. If you are thinking of buying, don’t wait. There is also still time to take advantage of the $3000 first time home buyer MSHDA money before that fund runs out...no income limit or sales price limit.
Give me a call if you would like more information about how to position your property to sell quickly and for top dollar or if you are a buyer and need advice on how to start.