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The Greater Kalamazoo Association of Realtors saw the number of homes sold in December improve from December 2008, continuing a trend from October and November.
December sales of 258 homes were 9 percent higher than the same month a year earlier. Similarly, sales in November 2009 were up 22.3 percent from November 2008.
“Following a strong fourth quarter in terms of residential units sold, GKAR leadership has deemed 2009 a year of economic recovery from a local real estate standpoint," GKAR CEO Frank Mortl said in a statement. “With an eye towards raising the market value of local homes to their true levels, our association is cautiously optimistic that 2010 will be a year of growth. Improved stock market performance, the need for business to replenish inventories, and the continuing impact of the federal government’s stimulus efforts are all playing a role in boosting the economy both locally and nationally.”
However, home values remain depressed, due to the amount of distressed sales still in the market. The average residential selling price for the area fell 10.7 percent from December 2008 to $117,581. Total dollar volume of residential sales fell 1.5 percent to $30.4 million, compared to $30.8 million at the end of last year, the association reported.
Once home prices stabilize and begin to improve, Mortl expects consumer spending to increase. Relative to the 12.9 percent national price decline in 2009, he expects local home prices to grow in the near future.
"Traditionally, as consumer confidence rises due to a stronger economy, home values are directly affected in a positive way," Mortl said. "Hopefully, the recession is firmly behind us, and local Realtors will continue servicing homebuyers and homesellers at these increased levels with solid home valuation growth along the way.”
“Following a strong fourth quarter in terms of residential units sold, GKAR leadership has deemed 2009 a year of economic recovery from a local real estate standpoint," GKAR CEO Frank Mortl said in a statement. “With an eye towards raising the market value of local homes to their true levels, our association is cautiously optimistic that 2010 will be a year of growth. Improved stock market performance, the need for business to replenish inventories, and the continuing impact of the federal government’s stimulus efforts are all playing a role in boosting the economy both locally and nationally.”
However, home values remain depressed, due to the amount of distressed sales still in the market. The average residential selling price for the area fell 10.7 percent from December 2008 to $117,581. Total dollar volume of residential sales fell 1.5 percent to $30.4 million, compared to $30.8 million at the end of last year, the association reported.
Once home prices stabilize and begin to improve, Mortl expects consumer spending to increase. Relative to the 12.9 percent national price decline in 2009, he expects local home prices to grow in the near future.
"Traditionally, as consumer confidence rises due to a stronger economy, home values are directly affected in a positive way," Mortl said. "Hopefully, the recession is firmly behind us, and local Realtors will continue servicing homebuyers and homesellers at these increased levels with solid home valuation growth along the way.”
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