Sales of Repossession Homes in Grand Rapids to Rise Again
Sales of repossession homes in Grand Rapids, Michigan slowed slightly in October, but foreclosure sales and short sales are expected to rise again over the next weeks and months because of the increase in foreclosure filings in the metro area.
As reported by a foreclosure tracking firm, the number of foreclosure filings in Grand Rapids in the July to September quarter rose by nearly 9 percent from the previous quarter and by more than 25 percent compared to filings during the same period last year.
A total of 2,415 residential units in Grand Rapids received default or foreclosure notices, representing one out of every 132 households in default or foreclosure.
Meanwhile, total house sales in the metro area in October soared by 35 percent compared to total sales in October last year, with the average sales price increasing by more than three percent from the same month last year to $109,826.
According to officers of the Grand Rapids Association of Realtors, the growth in home sales occurred despite more than 9 percent of decrease in filings from October last year. They also contended that the increase in the average sales price happened because of the drop in short sales and in sales of lower-priced repossession homes in September.
In September, the average sales price dropped by more than 15 percent to $104,327, compared to the average sales price in the first three quarters of 2008.
According to Julie Rietberg, chief executive of the realtor association, the most active area of the market continues to be in single-family houses in the price range of $100,000 to $140,000. She added that whereas before home sales typically drop in the fall, home sales this September continued to rise because of the large number of first time buyers who took advantage of the federal tax credit.
There are a lot of advocates calling for the extension of the $8,000 federal tax credit because of the significant role it played in home sales increases and in home ownership programs for lower-income families throughout the country.
But there are also real estate professionals who have mixed feelings about the extension of the tax credit program. Grand Rapids lender Tom Vanderwell said he personally supports the extension of the program to help cut down the number of repossession homes, but he added that the policy is not good for the overall economy if it is extended indefinitely.
