Allegan County Homes Sales Up in 2010

Allegan County home sales are up significantly the first four months of 2010 vs. the first four months of 2009.  The overall trend across the country has been higher sales and a mix of price increases and decreases depending on market; Allegan County has seen a 36% increase in the number of homes sold and a 32% increase in the median price. It is nice to see things getting back to normal after a quirky 18 months in the market.

With 287 Allegan County homes sold so far in 2010, we are on pace for the best year of sales in terms of units since 2006 when 343 homes were sold by the end of April. This is really good evidence that the bottom of the real estate market is behind us. Most of the downward pricing pressure will be behind us as banks are getting much smarter about liquidating bad mortgages. By using rental agreements and short sales they are taking away some negative pricing pressure. We have also seen the willingness to buy lower priced properties as many of them are on the market only a short time and sell after receiving multiple offers.

So that takes us to price; the median sales price of a home sold in Allegan County in the first four months of 2010 was $92,500 up from $70,000 in 2009. Not bad. Still below the high of $138,000 in 2005 this market offers some amazing buying opportunities. With property taxes based on valuation, and interest rates down the three bedroom, two bath 1356 square foot ranch that sold for $138,000 in 2005 would cost you over $300  a month less now than in 2005.

We look for the market to remain stable the remaining of 2010 and hold the price gains we have seen before increasing slightly in 2011.