The Michigan Association of REALTORS has received the majority of housing statistics for January. With 80% of Michigan's local associations reporting, the average sales price of a home in Michigan rose over 20% from January 2009, further signaling a trend in stabilized prices across central, western, and upper Michigan.
Both the Flint and Grand Rapids associations reported significant increases in home sale units. Home sales in the Flint area increased by 67 units over 2009. Similarly, Grand Rapids experienced a 60-unit increase from 2009. Their selling prices also increased, with Grand Rapids experiencing an average of $10,000 more per home.
Eleven local reporting units showed increases of 25% or better in average sales price, while 14 reported a better than 10% increase in units sold. The Antrim Charlevoix Kalkaska Association, for example, reported the highest increase in home sale prices, averaging just over $95,000. While several associations, including Hillsdale, Lenawee, and Traverse area, experienced a decrease in units sold, their average sale prices did increase significantly.
These positive results can be attributed to a number of factors. Purchasers have had an extended opportunity to take advantage of the first-time home buyer tax credit. Another important factor may be that buyers are receiving better interest rates, and, while carefully panning and budgeting, are able to afford more house for their money.
As the housing market heads into spring, the long-term implications for this upward trend are optimistic. If the numbers continue to rise as they have this past month, the market may be well on its way to stabilization, if not prosperity, in the near future.
Statewide statistics are compiled by the Michigan Association of REALTORS and are published monthly at mirealtors.com.