Filed under: Clarkston Market Report, Clarkston Real Estate, Clarkston Realtor, Michigan Market Updates, Real Estate News, Uncategorized
As the market recovers, there will be fewer months where we beat the prior year. Such is the case with March 2012. In terms of new contracts written, numbers continued to show improvement over March of last year. Across all of our markets Closed Sales were down just a bit from last year. This is not a cause for concern (it would be if there were three months of decline). March 2011 was an unusually strong month, so it is not surprising that we did not top it this year. As the percentage of short sales grows, pending sales will outpace actual closings since there is a higher fall-through rate for short sales. The more significant number from this point forward is the average/median sale price, since much of the market gain will be in rising values. If available home inventories remain tight, in ensuing months we may even see a slight decline in the number of homes sold as we simply run out of homes to sell. That trend, however, should not last long because it will cause values to rise thus more homes will be released to the market.
Southeast Michigan as well as both Southwest (Grand Rapids area) and Northwest (Grand Traverse) Michigan, the Months Supply of Inventory (MSI) hit another two-year low. (Southeast Michigan had the largest positive movement.) This is a very good thing because each month with a falling MSI moves us closer to a sustainable appreciation rate. For bank-owned, the MSI fell below 3 months, with non-bank owned at 4.8 months. Most of that fall was a result of an increase in contracts written in March. Available bank-owned inventories fell, but non-bank owned remained about the same.
The rest of the nation appears to be joining us in the market upturn. Brokers across the country are reporting strong buyer demand and a lack of home inventories, similar to where we where in mid 2011. With the rest of the country joining our party, housing is beginning to move from an economic anchor to one of the key pieces fueling the recovery.
For those looking to move, a common question is… should I buy/sell now or wait for the market to improve a bit? The chart below shows the cost of waiting to buy versus buying this year in terms of total cost of ownership. The chart used the anticipated mortgage and appreciation rates over the next few years to project the cost of waiting to buy versus buying this year (2012).
By waiting, buyers face both a higher interest rate as well as a higher purchase price on the home they buy. Each year a buyer waits it will costs them more (blue line), yet reduce their future appreciation gain (green line). For many homeowners, their mortgage gap is too wide to sell; however, that gap is closing every month, so it is more important than ever for sellers to ask their Realtors to track values.
If you’d like more information on the market, like to list your property, or want information on any property from any broker, you may call or email at anytime.
Thank you,
Robin Cutler and Kay Pearson
PearsonGroup@MaxBroock.com
248-860-0366
Buyers are recognizing the value in owning verses paying rent, even when it comes to their vacation homes.
Nearly 40% of my sales this year in Florida have involved Canadian buyers. Being from Michigan, I have enjoyed working with our Canadian neighbors to help them buy their US snowbird homes in Florida.
WUSF NEWS
By SCOTT FINN
“Florida had six metro areas in the top ten for foreign buyers — Tampa was ninth and Orlando third.”
Filed under: Clarkston Realtor, Michigan Market Updates, Uncategorized | Tags: clarkston MI realtors, Clarkston Real Estate, michigan real, michigan real estate update
A new month reveals that the market continues to improve. Pending sales were up and there continues to be a significant number of sales with multiple offers. It is the best time in the last six years for sellers to test the market: values are up over last year and many sellers will be surprised at how far up the market has moved.
The overall 90-day trend for our leading indicators has been either positive or neutral. Pending home sales are steady, home values are stable, and available inventory is down. In all cases, residential real estate values have improved since the same time last year. As the lower quality homes carrying a discounted value are sold or removed from the market, appraisals values and appreciation rates will begin to rise enough to draw more sellers into the market, increasing the pace of recovery.
The Months Supply of Inventory (the time it takes to sell off the current home inventories) is at its lowest point for bank-owned properties in the past two years (3.1 months) as well as the lowest point for non-bank in 22 months (6.1 months). The market remains divided between the 30% of homes that sell quickly and the 70% that sit on the market for months.
For the typical home in almost any market, if there is not strong market activity and multiple potential offer interest in the first 30 days on the market, the home is not priced correctly to fit its condition and features. Currently, if a home has been on the market for over 90 days without a price adjustment, there is a less than 25% chance it will sell. A home on the market for over 180 days has less than 3% chance of selling without a price adjustment.
In order to push up the pace of appreciation, the older, less saleable inventory needs to be either sold or removed from the market. This less-than-perfect inventory is the key to market recovery. It’s also a great opportunity. With rental rates strong, there has never been a better time to invest in single-family rentals. Annual returns can exceed 10%, leaving room for rehabbing and renting. These historically high returns work for a buyer who fixes up to live in the property or to hold it as an investment. For those who need help with the fix-up costs, a common challenge for many, the FHA 203K program is ideal.
This update is brought to you from our President of Brokerage services, Dan Elsea. Real Estate One is the largest Independent owned real estate company in the state of Michigan. ”The Pearson Group” licensed with Real Estate One since 1988 works with buyers and sellers in Southeastern Michigan and Northeastern Michigan.
Filed under: Uncategorized
After a close brush with the deadline, Congress has passed an extension of the Homebuyer Tax Credit closing deadline, the Homebuyer Assistance and Improvement Act (H.R. 5623) . The extension applies only to transactions that have ratified contracts in place as of April 30, 2010 that have not yet
closed. The legislation is designed to create a seamless extension the new closing deadline for eligible transactions is now September 30, 2010. There is will be no gap between June 30 and the date the President signs the bill into law.
NAR worked closely with Congressional leaders on both sides of the aisle to enact this important legislation. Extending the Tax Credit Closing deadline will help provide additional stability to real estate markets across the nation.
For additional information on the extension visit www.realtor.org/government_affairs
Additionally, the United States Senate has passed the National Flood Insurance Program Extension Act of 2010 (H.R. 5569) an extension of the National Flood Insurance Program until September 30, 2010. This will allow transactions to move forward. The bill is retroactive and covers the lapse period
from June 1, 2010 to the date of enactment of the extension.
For more information on the flood insurance program visit www.realtor.org/government_affairs
After a close brush with the deadline, Congress has passed an extension of the Homebuyer Tax Credit closing deadline, the Homebuyer Assistance and Improvement Act (H.R. 5623) . The extension applies only to transactions that have ratified contracts in place as of April 30, 2010 that have not yet
closed. The legislation is designed to create a seamless extension the new closing deadline for eligible transactions is now September 30, 2010. There is will be no gap between June 30 and the date the President signs the bill into law.
NAR worked closely with Congressional leaders on both sides of the aisle to enact this important legislation. Extending the Tax Credit Closing deadline will help provide additional stability to real estate markets across the nation.
For additional information on the extension visit www.realtor.org/government_affairs
Additionally, the United States Senate has passed the National Flood Insurance Program Extension Act of 2010 (H.R. 5569) an extension of the National Flood Insurance Program until September 30, 2010. This will allow transactions to move forward. The bill is retroactive and covers the lapse period
from June 1, 2010 to the date of enactment of the extension.
For more information on the flood insurance program visit www.realtor.org/government_affairs
Filed under: Clarkston Home Sales, Clarkston Market Report, Clarkston Real Estate, Clarkston Realtor, Uncategorized | Tags: Clarkston Home Sale Trends, Clarkston Housing Supply and Demand, Clarkston Real Estate Market
However………Improved could mean past tense and ”The Pearson Group” is in high hopes that this is a very temporary trend that we have just identified.
June and April Supply and Demand Studies have been posted for comparison. There was a significant decrease in the inventory and increased demand that we contributed to the recent tax incentives to buyers.
June – 2010
April – 2010
We reviewed the pending sales since May 15th and have included below the average number of homes sold (closed) per month for the past 90 days verses the number of homes that went pending (offer accepted but not closed) within the past thirty days. The results are included below:
Some of the 90 day numbers, in the chart above, likely reflect and were fueled by the homebuyer tax credit that expired April 30, 2010. We will continue to gauge the impact that tax incentive had on our spring market. While we anticipate there will be less buyer interest in the upcoming months, we have further concern that the shadow inventory of foreclosures expected to hit the market soon, coupled with fewer buyers, will cause further distress to the number of sellers who have already been affected by our dismal real estate and economy overall.
Since the expiration of that tax credit incentive on April 30th, we have noticed the decrease in activity.
Filed under: Uncategorized
President Obama announced Friday a $1.5 billion program to help borrowers in the five states hit hardest by the housing crisis.
The initiative calls for pumping money into state housing agencies in California, Arizona, Nevada, Florida and Michigan to fund programs to prevent foreclosure for people who are unemployed or who owe more than their homes are worth.
