Did you know that foreclosures in the United States are now lower than they have been since the Great Recession? In other words, right now, there are fewer foreclosures than there have been for the last eight years, meaning that homeowners can breathe a sigh of relief regarding the ongoing impact of staggeringly high foreclosure rates in some neighborhoods and states. This is a sign that the major real estate markets in this country are more stable than they have been for years.
Some homeowners, who were savvy buyers that paid a reasonable price for their home, were never in any risk of losing their home, provided there were no catastrophes in the family (such as losing a wage earner, a divorce, etc). However, despite their own best planning, many of those homeowners saw the value of their biggest investment begin to decline, perhaps even leaving them upside down on their mortgage (owing more than the home could sell for). If one person lost a home in a neighborhood, it could, even in West Michigan, leave a vacant shell that had once been a family home. These buildings fell into disrepair, and neighbors looked on as something out of their control took its toll on their financial stability.
Thankfully, after years of foreboding levels of foreclosures and decreasing home values, most major U.S. real estate markets have re-stabilized and are now gaining in value again. This is certainly true of West Michigan; neighborhoods are seeing those blighted, abandoned homes purchased and renovated or taken down to make way for something new.
Currently, the national foreclosure rate is now 1.2%, back to what it was in January 2008, before the recession started. In Michigan, that rate is actually only 0.5%. Certainly, this in part because so many people in this state have already been foreclosed upon and are no longer homeowners, but it is also indicate of the slowly strengthening local economy and real estate markets.
In West Michigan, this is just large-scale reinforcement of what local professionals have been noting for many months: that the market is stronger than it has been in some time. Right now, our market is sitting at an average foreclosure rate less than half the rate of the national average. Home values in West Michigan, compared to national averages, remain reasonable, meaning buyers can get more for their money in West Michigan than in many other parts of the country.
With the market stronger and prices more reasonable, many people who had been holding off on selling their well-maintained, beloved homes during the recession are now putting them up for sale. This means there are still plenty of quality homes, in a neighborhood that suits you, available for sale. However, with the market as hot as it is, with low levels of real estate inventory and homes often selling within their first week on the market, educated, experienced realtor representation can make all the difference for buyers looking for a home or a well-placed investment property. For sellers, having a skilled realtor helping to market the home can maximize the return on the sale. Whether you're buying or selling a Grand Rapids or West Michigan home, call Pyxis Realty today to get the kind of help you need!