2015 turned out to be a very good year for home owners and home buyers. Newaygo County saw property values bounce back to 2004/2005 levels, while interest rates remained affordable for all. Waterfront owners saw the largest price correction driving values up 21% over 2014. The average waterfront home in 2014 was valued at $141,865, whereas, 2015 brought that value soaring in at a whopping $172,285. In contrast, residential home owners saw a 6% price increase over 2014, bringing the average sale price to $90,235. According to economists a 5%-7% increase year after year is average. Of the 605 sales throughout Newaygo County last year, 180 of them were waterfront homes. Waterfront home sales were up 13% over 2014 and 46% over 2013. Residential home sales actually saw a decline of 8% from 2014 and a decline of 11% from 2013 numbers, due in part, to a lack of inventory, fewer affordable foreclosures and tighter lending guidelines. With unseasonably warm weather and the Fed's decision to raise interest rates, the 4th quarter of the year ended up being astounding, both in waterfront home sales and residential home sales, with a combined total of 160 homes sold. Not a bad ending to a great year for real estate!
The outlook for 2016 is very promising. The rate hike from the Fed's was minuscule in nature, only raising interest rates to buyers by about 0.25%. Home values have remained affordable, foreclosures are on the downswing and homeowners who were foreclosed on during the recession are now qualifying to purchase homes again. All things considered, the only downside for 2016 will be lack of inventory. Considering that in 2008, where we had 7 months of inventory on average, 2015 came in with an average of 2.46, which is below the necessary 3 to 3.5 months to keep supply and demand in check. As with last year, supply and demand will drive pricing higher again this year. 2015 saw an upswing in new home construction and 2016 will also see substantial gains in new home construction as well. Waterfront values should not see the kinds of gains seen in 2015, but should see a price improvement similar to that of 2004/2005 of 9%. Residential homes should continue to see an average price improvement again this year. As with last year, the average time it takes to sell a home should continue to remain around 125 days. The Fed's want to slow Quantitative Easing, which means raising rates to banks. That will raise our rates on home loans. Home owners and home buyers wishing to buy and sell should take advantage of that notion this year while rates are still very low.
Here's to a fabulous 2016!
Best Wishes, Kelly Pangburn Associate Broker / Owner Pangburn Properties, Inc. Office: (231) 834-9199 ext. 308 Cell: (231) 519-1872 Email: Kelly@KellyPangburn.com
Author:Kelly Pangburn Phone: 231-519-1872 Dated: January 31st 2016 Views: 224 About Kelly: ...
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President, Kelly Pangburn, and her team of seasoned professional REALTORS® have been serving West Michigan since 1995, offering superior real estate services for home buyers and home sellers. Their approach is personal, their office is warm and inviting and their knowledge is unrivaled. Pangburn Properties, Inc., independently owned and operated with the opinion that customers come first. “Helping People Is Our #1 Priority” has been their motto since inception and remains that today. Sincere, honest and trustworthy, the REALTORS® here are truly good people to know.
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