Great new condo just listed near Rishi’s International Beverage, Mikado Sushi, The Orbit Room and Centerpoint Mall. 3BR 3BA, in-ground pool, new paint and carpet, under $100K!
I sat in on a two hour talk with Lawrence Yun the other week, and it was great. One of the things he brought up that really stuck is how directly home ownership can affect a family or individual’s net worth. Here’s an illustration of the results of the government survey he quoted:
In the short term, it may or may not be considerably easier to lease. But, investment in a home can absolutely help out in the long term, as a homeowner pays down the balance and achieves more and more equity. This is one major reason why the federal government offers so many incentives for first time buyers:
Let FHA Loans Help You
MSHDA Downpayment Fairy
Fannie Mae FIRST LOOK listings
(only available to owner occupants)
Nice little place to call home a street away from Riverside Park! Just under 80k, many nice improvements and architectural components, fenced yard, and a gnarly oversized garage that is the envy of the block.
Grand Rapids MI, East Hills Neighborhood. Nice turn-key duplex, one unit is occupied, tenants prefer to remain. City certified in 2013.
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.
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.
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All statistics courtesy of Grand Rapids Association of Realtors
Full Article Link HERE
According to Forbes Magazine, Grand Rapids is one of the best places in the US in which to find employment.
Recently, Forbes also named Grand Rapids the #1 Best City for Raising a Family.
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
