Based on recently released figures, distressed home sales had an impact on December home sales both locally and nationally. Distressed homes are those properties that have been repossessed by lenders, REO’s (typically banks) and short sales (homes currently for sale by the owner before the bank has repossessed the property.) Both, REO’s and short sales are sold for less than what is owed to the lender.

In December 2011, the average home price in Greater Kalamazoo declined by 1.01% to $130,474 as compared to December 2010 price of $131,836. These home prices included both normal resale and distressed homes. However, the number of residential homes that sold increased from 3479 units in December of 2010 to 3553 units in December of 2011. This positive number in addition to the lower number of units entered into the system in 2011 compared to 2010 means fewer properties were available for sale.

In order for the housing market to recover, the number of distressed properties must decline so that the prices of homes can slowly recover. Nationally it is expected that the number of distressed homes will be lower in 2012, but the first few months of the year will give a better indication of the market. The local market can vary from national trends so be mindful of national news and national housing numbers. Remember that housing is local and our small area of country looks quite different from other parts of the country.

We all want the housing market to recover to help our property values as well as the economy. Some indications look promising while others keep real estate professionals guessing as to when the market will recover. As of right now it is a guessing game. The key to selling your home in the current market, and any market for that matter, is to make sure it is priced right. Remember that the correct market price may be a little or a lot lower than the price you want. The price is not determined by you or your real estate agent; it is determined by the market and what a ready, willing and able buyer will pay for your home with the caveat of an acceptable appraisal.

Please reference the statistics and graph below.

Kathy Fosmoe
Watts Realty Team
5071 Gull Road
Kalamazoo, MI 49048