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What’s Your Neighborhood Score? New GVSU Data Released

A long term project of GVSU, overseen by Jeremy Pyne, geographic information systems manager at the Johnson Center, has just released new data on neighborhoods in West Michigan.

You can compare your neighborhood score to others in town, even output a custom report based on a specific home’s location.

TRY IT HERE

profiles

The first phase of the CRI Community Profiles 2.0 aims to build upon CRI’s existing work in housing and economics within the City of Grand Rapids and to further the development and use of neighborhood information and data systems in local policymaking and community building.

This tool allows you to:

  • Map housing and economic patterns within a community or neighborhood
  • Compare multiple neighborhoods and indicators simultaneously
  • Trend information over time and across geographies
  • Score neighborhoods based on multiple indicators
  • Generate profile reports for your defined or customized geographic areas; and
  • Save all of your work through a registered account for future access.

Grand Rapids Home Values Up 16 Percent After Healthy Spring Market

With the Spring Market well underway in Grand Rapids, its time to look back and see if the ecomonists favorable yet conservative predictions from 2012 have come true.  After the big and constant decline over the past few years, I’m happy to say that Real Estate is trending upward, probably faster than we were expecting.

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Comparing January-April 2012-2013, the numbers are looking great. Here are a few facts that point to a recovering market:

Heritage Hill & surrounding historic district, Grand Rapids:
In 2012, 42 homes in the surveyed downtown area were sold from the beginning of the year through April, as compared to 43 homes sold during that same period in 2013. The average sale price was $189,000 in 2012, and $215,000 in 2013. That is a healthy increase of around 14% from last year to this year.

Other neighborhoods of note:

Grand Rapids Downtown Historic District: up 14%
Grand Rapids Northeast: up 11%
Walker: up 15%
Northwest Neighborhoods: up 17-27%
Northeast Side: up 5-38%
East Grand Rapids: up 20%
Southeast Areas: up 2-23%
Wyoming: up 15-23%
Grandville: up 9%
Kentwood Neighborhoods: up 9-13
West Side: up 8%
Grand Rapids Township: up 26%
Cascade: up 25%

Overall, the Greater Grand Rapids area has had a similar number of listings and sales in Spring 2013 as compared to Spring 2012, but the average sale price this year is $132,688 as compared to least year’s Spring average of $114, 626. That’s an almost 16% increase across the Greater Grand Rapids area.

Right now, consumer confidence is up and foreclosure listings are down. Over the next 2-3 years, the banks will be selling the rest of their Shadow Inventory, which are the foreclosures that remain from the dark period we just experienced. Still, there are far fewer foreclosure listings now than there have been in recent years, and the confidence of home sellers continues to grow along with sale prices.

With inventory this low and lots of buyers out there, the market seems to favor the seller. Still, there are some foreclosure listings in the mix, which jostle the recent memory of a heavily-weighted buyers market. Right now, it is a great time to engage in this Real Estate market, whether you plan buy or to sell. Buyers are faced with historically low interest rates coupled with low prices. Sellers are experiencing the most success since prior to 2008. These are good times.

All statistics courtesy of Grand Rapids Association of Realtors

February Home Sale Revenue Up Forty Percent

Statistics Compare February 2012 to February 2011

Statistical Source: www.GRAR.com
Greater Grand Rapids Sales & Listings
(c) March 2012 Pete Bruinsma

New Listings
February 2012: 1624 (11% increase from February 2011)
February 2011: 1458

Total Value of Sold Homes
February 2012: $128,004,683 (40% increase)
February 2011: $91,420,627

Homes Sales
February 2012: 1127 (23.7% Increase)
February 2011: 911

Year-to-Date Home Sales Total Value
Jan-Feb 2012: $225,445,647 (up 21.6%)
Jan-Feb 2011: $185,357,779

Negative Impact of New Appraisal Rules

Negative Impact of New Appraisal Rules

-by Pete Bruinsma, GRI

Here are two examples I’ve encountered in the past six months in which the new HVCC/FHA appraisal rules have negatively affected sales. First, a quick opinion.

The new rules for conducting appraisals are a great example of how a well-intentioned idea can be placed into practice prematurely. I know not one Realtor, lender or appraiser who is thrilled with these new rules. Quality of my appraisals have been lower, prices higher, appraisers are paid less as a result, and authority and liability have been misappropriated.

In many regions, homes are worth less now than they were worth three years ago. Some home value inflation and some demand was manufactured through fraud, committed through improper lending and appraisal practices. Although this undisputed truth was witnessed by most Realtors, lenders and appraisers, the “fraud” word is easier to finger than the abundance of  misjudgments made by lenders, consumers and economists over the course of many years. I feel as though the new method of operation for appraisals is an overcompensation.

Two (out of many more) things that bug me about this:

The advent of the “Re-appraisal” – Appraisers I know recently billed $300-350 per appraisal and retained much of that. Under new rules they share the fees with management companies, costs are driven down through competition, and they now retain 50-60% of the former fees with the purchaser paying the same or more. Plus, appraisals are under hightened scrutiny, so less money for tougher work. Since appraisers are not allowed to have any contact with referring lenders under the new rules, and findings are largely unchallenged, items never before noted on an appraisal such as “peeling paint” are new cause for a note on the appraisal, and a the call for a re-inspection with an additional fee. This easy pay correction for the appraiser is just passed down to the buyer.

Discouragement of Localism – Lets face it, without connections in the business with good lenders, surveyors, lawyers, title companies, sign companies, builders, contractors, government officials, neighborhood associations and more, the job of a good Realtor would be a lot less streamlined, and the end product to clients would be less valuable. Taking the fair, reliable, knowledgeable, local appraisers we’ve worked with for years out of the running for our new business has many negative implications and should be reevaluated. Plus, appraisers randomly assigned to find comps in neighborhoods with which they are unfamiliar simply results in bad appraisals.

Here are my two examples from personal experience:

Example 1: I’m representing the buyer. Short sale finally approved after 5 months! One month deadline to get it closed, Bank of America requires 4 days to examine the HUD statement prior to close. Appraisal ends up taking three weeks and costs $650.

The chain of command explains a lot of the problem: Short sale negotiator -> Realtor -> Loan Officer -> Bank -> Appraisal Management Company -> Appraiser (via fax).  The initial appraisal request took 5 days to reach the appraiser and three more to fit into his schedule. Once there, he noted some loose shingles and peeling paint, subject to repair and a $125 re-inspection fee. Repairs were made, re-inspection request submitted, 5 days for the request to reach the appraiser and two more to fit into his schedule. Appraiser comes back, repairs are satisfactory, but he notices one piece of rotten wood underneath the shingle repair, where water had been leaking. This is on a porch overhang. He notes it on the appraisal, subject to repair and a $125 re-inspection fee. He also calls for the water to be turned on again even though we’d submitted our plumbing inspection from a certifed plumbing inspector, along with a letter that stated the water was on at time of inspection.

We did make it happen, the deal did close in time, but it came down to the final day. The loan officer voluntarily paid for the two re-inspection fees. The buyers and sellers ended up emotionally exhausted but happy.

Example 2: Rehab project purchased for $17,000. Pre-construction appraisal estimated current value of $17,500 with final estimated finished value of $68,500. Finished appraisal comes in at $20,000.

Home had been sold two years prior in less-than-perfect condition for $85,000. Home was fully rehabbed by licensed contractors including new mechanicals, roof, insulation, foundation and drainage work, new hardwood floors, landscaping, paint, bathroom, etc. Tenants placed for $750/month. Home appraised for a refinance, $450 charged. Appraisal came in at $20,000 with four comps, all short sales and foreclosures in poor condition. I personally found two 3-month-old non-foreclosure sold comps and one pending sale, of similar construction, age and size within 1/2 mile that supported $60-70k. These were submitted to the bank and denied.

Now, does the owner gamble another $450 by going through another bank, not knowing who is going to appraise the home? Maybe. Does the owner realize a benefit in lowered taxes from the city assessor taking this $20,000 appraisal into consideration when determining taxable value?  Nope.

Frustrating.

Featured Neighborhood Profile: Heritage Hill

Market Data Compiled 1/25/10 by Pete Bruinsma, GRI.

Sales in past year:

Frequently Requested Heritage Hill Info:

  • Heritage Hill is one of Grand Rapids’ oldest neighborhoods. It was added to the National Register of Historic Places in 1971
  • Downtown location borders downtown businesses, schools, US-131, I-196/96, as well as the Medical Mile and Uptown.
  • Property tax millage:  Homestead: 29.76 / Non-Homestead: 47.76
  • Price/square foot $91.23
  • Health facilities
  • Parks and recreational facilities
  • Convenient to many restaurants, cafes, shopping in all directions
  • Population: Population 4,429  Age 18-64: 86%
  • More info on Crime statistics Population Density, Owners vs Renters, School District, can be found here.
    Great Article: http://www.rapidgrowthmedia.com/Cities/HeritageHill/