Friday, April 3, 2009

Out Like a Lamb: West Michigan Housing Market Turning Around?

Looks like the housing market in Grand Rapids may be turning. Now one month doesn't make a trend, of course. But the number of March sales was certainly better than March last year, and the average price was up slightly from February.

1 comment:

  1. Michael DolislagerApril 7, 2009 at 12:12 PM

    The most positive number in the article that I saw was the decline in inventory. My question to the author would be, "has the average time a home is on the market increased or decreased?" I believe the health of an economy is gauged by the velocity of money and I believe the same principles hold true for the housing market.

    That question being asked, I still believe that the major drop in housing is still to come. 3 year arms peaked in popularity in 2005. They reset in 2008. I assume people will be able to find a way to scrape by and make a couple months of payments that they cannot afford. And under current foreclosure laws people can live in a house a year without making payments before they lose their house (which they're likely underwater on). So according to that time table the large impact of these ARM "liar loans" will not come until mid to late 2009. Once the foreclosures hit the market in mass numbers, I doubt an $8k credit will make that much of a difference.

    To home buyers: "BE PATIENT"