GRAND RAPIDS, MI – Creston Plaza, a 40-year-old public housing project on the city’s near Northeast Side, is headed for a total makeover in the next year or so, according to Carlos Sanchez, executive director of the Grand Rapids Housing Commission.
The Housing Commission hopes to demolish the 100 apartments and replace them…
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
The 15-year fixed-rate mortgage reached a new all-time low this week, while the 30-year mortgage edged nearer to matching its record low, Freddie Mac reports in its weekly mortgage market survey.
The low mortgage rates are helping to push housing affordability to record highs. The National Association of REALTORS® reported this week that the average family has more than double the income needed to purchase a median-priced home.
Here’s a closer look at rates for the week ending March 8:
Link to National Association of Realtors Press Release Here.
According to the NAR, “Pending Sales” of residential property have rose in the midwest by 3.3% in the past month, and are 9.5% higher than one year ago at this time.
According to a separate study entitled “Existing Home Sales Continue to Climb in November,” it has been found that “Sales reached the highest mark in 10 months and are 34 percent above the cyclical low point in mid-2010 – a genuine sustained sales recovery appears to be developing.”
Studies by Laurence Yun, Chief Economist of the NAR.
In 1998, I purchased my very first home with an interest rate just over 7% and I was thrilled. It is a 2-unit, I still have it as an investment, and I refinanced just this past week to an non-owner-occupant rate of 4.5%. Being a numbers guy, I calculated that with no re-fis, I would have paid $96,353 in interest until now. If I’d had an original rate like I received this week, my to-date interest would have been $58,377. That’s a difference of $38 Grand!
When I think about it, it is astounding how great the buying climate is today for buyers. You’ve heard that home prices are at a long-time low, but money is also very cheap. This is a wicked combination! I’m focusing on interest rates only for this post. Here is a chart of interest rates, from when I personally started purchasing until now:
What does this mean for you, a buyer in today’s market? Here’s an example:
You qualify now for a $100,000 mortgage. All factors the same, we warp you back to 1998 with 7.1% interest rates. You are now qualified for a $77,000 purchase.
Lets modernize this. Say you qualify in Fall 2011 for a $100,000 mortgage at 4% interest. You wait awhile and interest rates go back up to 5.85%, a rate we saw a couple of years ago. You are now qualified for a purchase price of just over $85,000 with the same down payment and loan terms.
Lets flip it around:
You purchase a $100,000 home and put $3,000 down. Here’s how much interest you pay over the life of the 30 year loan:
7.1% (like 1998): $137,674
4.0% (like right now): $69,713
5.85% (like…the future): $109,007
$100k will get you this home in West Michigan, or one of many others:
Time to make a choice!
(a) Now
(b) Later
Pete Bruinsma is an Associate Broker at Grand Rapids Realty in West Michigan. © www.PeteBruinsma.com
Thanks Rapid Growth Media: ARTICLE
This Old House: FULL ARTICLE
THURSDAY, MARCH 10, 2011
Photo: Courtesy of the Heritage Hill Association
ThisOldHouse.com touts Grand Rapids’ historic Heritage Hill neighborhood as one of the top 12 “old house neighborhoods” in the country for sustaining a sense of place in a storied residential area, and the best Old-house neighborhood in Michigan.
excerpt:
Why Buy Here?
Though short sales and foreclosures haven’t hit Grand Rapids (long the center of the office-furniture industry) as they have Detroit and other automotive cities, the down market hasn’t overlooked Heritage Hill. Today, you can grab the former castle of a lumber baron or wealthy judge—and walk from home to work in the city’s center—for what amounts to pocket change in other places.
Read the complete story here.
Link: Question and Answer
I have two answers for you. First, there a lot of investors in town selling homes on land contract. Often a sign in the yard sells a home like that in a good neighborhood and good schools. You’ll want to talk to a Realtor who knows who those investors are, and which ones are worth contacting and which are not. Second, if you have at least a good 10% to put down on a house, look for your ideal home in the ideal neighborhood that is currently for rent, and make an offer. Just because its not listed does not mean its not for sale! And…you’ll want a good Realtor to represent you so you dont get ripped off in terms of value, terms, interest rate, and general business conduct.
For over 80 years the Fulton Street Farmers Market has brought locally grown produce and homemade items to the heart of Grand Rapids. Last Tuesday the association unveiled an estimated $3 million renovation of the market that will improve vendor conditions and customer experience. The new designs include a 2,000-square-foot building, which will house 8-12 vendor stalls year round…
Photo Credit: Lott3Metz Architecture
