Watching the news on television and reading the news in the papers is akin to watching reruns of old TV shows. Over and over again, same story……in the case of real estate, the national housing slump, foreclosures, the economy and the mortgage crisis makes for great stories for reporters to sink their teeth into. Viewed and read enough times people get to believing things are really, really bad in the marketplace. Nobody is buying, nobody is selling, prices have fallen into an abyss. Yeah, right…..forgive me while I take a more optimistic look at west Michigan and report some ‘Cold’ hard facts that won’t make it to the front pages of area papers or as stories on the 6, 10, or 11 o’clock newscasts.
Here’s what I know. Shockingly enough, people still need roofs over their head. They like having their own home, something they can call their own. Interest rates are incredibly low. Inventory is high and variety in that inventory pool is huge. Add it all up and contrary to the ‘news’ reports, this may just be one of the best times to buy real estate – ever! We’re talking mega opportunities here. Sure enough, a seller looking to
‘move up’ may not get the price they particularly want on the sale of their existing home BUT they’ll make it up on the home they buy because THAT seller is experiencing the same thing…..is this coming into focus? For first home buyers today’s market is truly a Goldmine. For trade-up buyers what better time to latch onto that home you otherwise thought you couldn’t afford than right now?
Permit me to launch a counter-attack on the naysayer reports that want the public to believe the market is seriously down the porcelain throne in the bathroom.
In the West Michigan Lakeshore Association of REALTORS, Multiple Listing Service, we break down our region into three primary areas served by our nearly 1000 members. We are able to track sales activity since the year 2000, when our Association was born. The first area is the “H” area and it covers such communities as Holland , Zeeland, Saugatuck, Douglas , Fennville, Glenn. In the H area, the number of residential sales units sold in 2007 was only 4 units shy of 2006 (1785-1789). The record high was 2062 units in 2004. Lets be honest, records are generally not followed by more record years.
Surprising to some is that last year, 2007, the average sales price in this area was the 3rd highest on record at $191,491 and the ‘record’ was not much higher, at $193,478 in 2005.
Next, we have the “M” area, which covers all of Muskegon County . The ‘record’ year was 2295 sales units in 2004. Last year, 2007, there were 2059 units sold, down from 2230 the previous year. Record average sales price year was 2005 ($119,301) and last year 2007 the average was $107,451. Surely, the number of foreclosed properties helped push this average sales price figure down, but as the foreclosures dry up, you can expect to see that average price rise.
Finally, we’ll examine the “N” area, which is Northern Ottawa County , (Grand Haven area). I am sure many will find it mind boggling to know that 2007 was within a single sale of being exactly the same as in 2006, 769-770! The absolute record year was 2003 with 903 units sold. How about prices? Brace yourself – 2007 was the 2nd highest average price year on record at $211,188 which is actually higher than 2006 and the record was $216,950 in 2005.
I am not going to say the media does not want you to know this, but I will say they’ve done a miserable job of telling this positive side of the story. In fairness, the onslaught of reports of doom n’ gloom might make for more exciting and sensationalistic reports. The reality is, the Sky Is NOT Falling! There is a positive spin on the real estate marketplace in West Michigan and we need to spread the word, we need as an Association of REALTORS to be shouting it from the rooftops! The Opportunities are unbelievable right now. It may not be this good again! The Public and members alike are in need of a wakeup call, maybe these words will be that call…..only time will tell. I can share with you this – I lived through the markets of double digit inflation and double digit interest rates for mortgages and we survived it. Today’s market is sooo much easier, yes better, than those days. We in West Michigan simply need to focus on the facts and the Goldmine that awaits our entry, however, and not find ourselves buying into the constant onslaught of doom n’ gloom and crying the blues. Is not a good time to buy in West Michigan ? It’s a GREAT time to buy in West Michigan ! For a change, I’d like to see that on the front page of the local papers and on the TV news. Only in my dreams, I’m afraid…….
