Grand Rapids Home Prices Up 35% Over Last year

2 11 2009

Grand Rapids real Estate Market Stats for September More great news for the Grand Rapids Real Estate market! As reported by the Grand Rapids Association of Realtors, Grand Rapids area single family home sales continue to improve and are up a whopping 39.2% over the same time period last year. The actual numbers are 1075 homes sold versus 772 in September 2008. The average sales price is also up 2% compared with the year-to-date average of $107,285. Single family year-to-date sales volume is up to 8,657 (14.1%) compared to 7587 YTD in September 2008. Inventory lever rose slightly to 8.7 months.

22% of homes sold in the Grand Rapids area remain in the $100,000 to $140,000 range with less than 50% of residential single family home sales counting as short sales and foreclosures.

The $8000 Tax Credit is one of the main reasons for the increased sale of homes  in the Grand Rapids area. The current Tax credit is set to expire on November 30th, 2009. This means that for home buyers to claim the $8000 credit, they would have to close on November 30th and no later.

Some good news to come out of DC is that there is a bill in play that will extend the First Time Home Buyer Tax credit into next year, April 30th, 2010. The $8000 credit will then reduce by $2000 each quarter until it expires at the end of 2010.

For more information on the Grand Rapids real estate market and to search for homes, visit my website at GRRealEstateInfo.com or contact me any time.

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$8000 Homebuyer Tax Credit – Grand Rapids Real Estate Market Update

14 02 2009

UPDATE – 11/4/2009: The senate has approved of an extension to the $8000 Tax Credit. More about it here.

UPDATE – 2/16/2009: Here is a pdf document from NAR (National Association of Realtors) documenting the changes to the First Time Home Buyer Tax Credit. CLICK HERE.

So what was a $7500 “First Time” home buyer tax credit, then it was reported to be a $15,000 home buyer tax credit, was changed at the last minute to an $8000 home buyer tax credit.

So basically, this is what we ended up with:

  • It has increased from $7500 to $8000 but it is capped at 10% of the purchase price.
  • It is no longer a loan, it is a true credit to home buyers but the buyer must remain in the home for 3 years.
  • It is STILL only for “first time” home buyers, which is defined as someone that hasn’t owned real estate in the last 3 years.
  • It is applicable for anyone that buys or has bought 1/1/2009 and 12/1/2009, extending the date from 7/1/2009.
  • Full credit is available to those making $75,000 or less or $150,000 for joint filers.

It would have been much better for them to make this tax credit available to everyone, not just those that have owned real estate in the last 3 years, but still it is a good incentive and together with the low interest rates and falling prices, it is a good time to purchase a home or condo.

For information on buying or selling real estate in Grand Rapids and the surrounding areas, please visit my website at GRRealEstateInfo.com or contact me any time.