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Home Sales Driven by Grand Rapids Pre Foreclosure Homes

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By : John Cutts    99 or more times read
Lower-priced pre foreclosure homes in Grand Rapids are among the major drivers of the increase in house sales in March, based on sales data from the Grand Rapids Association of Realtors.

Home sales also surged because homebuyers decided to take advantage of low interest rates and the federal tax incentives which are set to expire on April 30.

A total of 1,244 houses in Grand Rapids were sold in March, an increase of 28 percent from total sales in March 2009 and an increase over every sales total for the month of March since 2006. Only the sales total for the month of March 2005 was higher, which reached 1,270 units.

Realtors in the area were elated at the increase in sales, hoping it was a sign of housing market recovery from the adverse effects of foreclosures in Grand Rapids. They said that the sales increase in March marked the 14th consecutive month that total sales surged on a year-over-year basis.

As lower-priced Grand Rapids pre foreclosure homes enticed buyers to buy homes, realtors were encouraged by the uptick in the average price for homes sold, although the price level was still much lower than prices during the boom.

The average sales price for Grand Rapids homes in March 2010 was $113,883, an increase of 13 percent from the average price in March 2009, but still much lower than the average sales price of $153,579 in 2005.

Over the past 12 months, the average sales price was $110,649, an increase of 14 percent over the previous one-year period. Although the pace of foreclosure activity in Grand Rapids in 2009 was slower than in other Michigan metro areas such as Detroit, Flint and East Lansing, prospective buyers planning to find foreclosure listings in Grand Rapids will not be frustrated.

The total number of homes notified of default and foreclosure last year in the Grand Rapids area exceeded 7,800 units, representing 2.46 percent of all residential units in the area or equivalent to one foreclosure filing for every 41 homes in the area.

Grand Rapids ranked 56th in a listing of 203 metro areas based on rates of foreclosure, far below the 35th ranking of Detroit, which suffered from the collapse of its auto manufacturing sector.

According to local realtors, Grand Rapids pre foreclosure homes made home prices more affordable to buyers, enhancing other home buying incentives like tax credits and low mortgage rates.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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