The Ins & Outs of Real Estate In Grand Rapids, Michigan

A greyhound bus drive on the way back from a visit to Madison, Wisconsin was my first view of what I call the heart of the city...downtown Grand Rapids, Michigan. This was the early 80's.

As the bus skirted it's way through old, folorn delapidated buildings, I was struck by how tired the city looked...as though it's best days had long passed it by.

Thankfully, so much has changed! The heart of the city of Grand Rapids today bares little resemblance to the bleek picture that greeted my eyes almost 25 years ago.

Back then, my trip to Calvin College transported me into a world that was largely devoid of diversity. Today, a rich cultural heritage is far more evident in the mix-up called life in GR.

The Real Estate community is extremely diverse. For a young African woman who now calls this community home, it's been an experience rich in learning and challenge.

Are we on the verge of a transition in thinking about what qualifies as a good home location? For decades, the dream of American homeownership has often envisioned a home with a white picket fence out in the suburbs.

The article "The Tipping Point...When Poverty Moves to the Suburbs." explored the increasing trend in foreclosures and short sales which has led to many home owners who were once thought to be enjoying the "good life" loosing their homes and enduring great hardship due to devastating economic situations. For many folks, hard times have turned the dream of "living in the burbs" into a nightmare.

Recently, Jonathan Miller of the Matrix blog wrote a thought provoking post entitled "Suburbs are the Next Slums." In this quote from Arthur Nelson the Director of the Metropolitan Institute at Virginia Tech, he pinpoints a situation which is being observed in neighborhoods across the country...over-building resulting in high levels of homes without inhabitants!

"Arthur C. Nelson, director of the Metropolitan Institute at Virginia Tech, has looked carefully at trends in American demographics, construction, house prices, and consumer preferences. In 2006, using recent consumer research, housing supply data, and population growth rates, he modeled future demand for various types of housing. "

"The results were bracing: Nelson forecasts a likely surplus of 22 million large-lot homes (houses built on a sixth of an acre or more) by 2025-that's roughly 40 percent of the large-lot homes in existence today."

The US population has increased moderately over the last couple of decades. Yet, builders have built more and more homes with tons more space on increasingly larger lots all over the country. When I drive past many suburban communities, I see subdivisions half finished, with homes which are clearly unoccupied.

This is a major shift from most of the past decade in which homes were being built, sold and occupied as soon as the occupancy permit could be obtained.

Today, the new home market in Grand Rapids, Michigan is markedly subdued. New home starts have fallen dramatically. Many builders have had to leave the trade. New homes are now a part of the short sale and foreclosure list which has increased to almost 50% of the sales activity in the area.

As a home buyer, it is important to be aware of this trend, particularly if you are involved in purchasing a Re-Sale Home. Most buyers who are considering a older home in a community may not think that they need to be aware of what is happening to the new construction in their neighborhood. But they should be. Apart from the fact that they may be missing out on a good deal, a drastic drop in the price of new homes will also devalue older homes as well. These factors should be considered when making an intelligent offer.

There are other trends which may impact gentrification of downtown areas and precipitate on-going decline in suburban communities. These include: the increasing cost of gasoline making it more expensive to drive long distances to work, the increase in the cost of food, the rising costs for healthcare and the challenge of job losses in many sectors of the economy. Suburbs are usually bedroom communities...not places where people go to work. Consequently, inhabitants of outlying communities may be more susceptible to a combination of these types of economic issues.

Americans have had a long love affair with the idea of wide open spaces, where neighbors are greeted with a wave across large stretches of land...if seen at all. This lifestyle may be seriously challenged in the days ahead. Will, the suburbs become the Next Slums? Personally, I don't think so. However, in Grand Rapids, Michigan...some of the most exciting developments taking place in the real estate arena these days involve the downtown area which is being rapidly transformed into a world class cityscape. Just curious...are you observing any of these trends in other areas of the country?

Copyright 2008 Audu Real Estate All Rights Reserved

Touching the Holy...

From time to time, you find a book that truly nourishes the soul. The book, Touching the Holy, by Robert J. Wicks is one of these gems. According to Dr. Wicks, "True ordinariness is tangible holiness".

He explores with profound insights, the works of the ancient dessert Fathers and incorporates he contemporary themes in psychology to bring powerful insights about why it is important to truly embrace who we are called to be as ordinary human beings!

I'm not even sure how this book was recommended to me, but I'm so thankful to have the gift of reading & re-reading it.

The clarity of conviction with which the ideas are expressed grant profound insight into understanding how important and necessary it is that we embrace who we are truly called to be...unmarred or diminished by a plethora of vain & tarnished misconceptions.

I am struck by the fact that while there are so many "voices" that would try to manipulate or influence us, there will always resonate at the core...if we we will listen...the true calling of our ordinary being.

Quote from "Touching the Holy" on Creative Positive Imagery:

Writing by poet & Anglican divine Thomas Traherene:

You never enjoy the world aright

till the sea itself floweth in your veins,

till you are clothed with the heavens

And crowned with the stars,

And perceive yourself to be the sole heir of the whole world;

and more so,

Because men are in it who are

Everyone sole heirs as well as you...

till your spirit filleth the whole world,

and the stars are your jewels,

till you are familiar with the way of God

in all ages as well as with your walk and table

...till you delight in God for being good to all,

You never enjoy the world.

This quote from Touching the Holy spoke so expressively to me today. I pass on the gift to you as well.