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June Real Estate Report for Michigan
June 15, 2012, 4:32 pm
Filed under: Clarkston Real Estate | Tags: ,

No new news is good news! The market continues its march upward. The Months Supply of Inventory continues to decline as sales are outpacing new listings coming on the market. Certainly, shaky economic growth news here and in Europe has caused some concerns, but at the moment it appears that the combination of low interest rates and values, along with a large base of consumers able to consume, will cause the housing market to be a key factor in keeping our economy going through this current dip. A nice role reversal for us!

Based on current activity, we expect values to make a relatively quick jump over the next 12 months (10% plus) as a result of low salable inventories, low rates and buyers who for the most part have the financial strength to overbid. As interest rates and values rise and cash buyers become increasingly scarce, more inventory will hit the market and values will settle back to a more normal pace of appreciation.

Median prices have been increasing, but much of that to date is a result of buyers shifting to more expensive homes as well as fewer bank-owned properties. Most of the real appreciation has occurred in the last 90 days, so it will not show up in sold data for a few months. The majority of homes sales are occurring among listings on the market less than 90 days. In fact, in southeast Michigan, 42% of the under 90 day sales are at or above list price (we expect that number to rise as spring market closed data comes in).

As we said last month, 50-70% of all sellers will tell you the market is still slow, with not a lot of activity, while 85% of all buyers will tell you the market is moving at a crazy pace. This is not like 2008 when buyers were scarce. There is an abundance of buyers in the market and we distribute our properties to enough eyeballs that if a seller is not averaging three showings per week or at least one offer in 30 days, the home is overpriced for its market and condition. About 15% of those overpriced homes are eventually selling after several price reductions and, typically 6-8 months longer on the market.

Homes are selling on average at 97% of the listing price (93% in northwest Michigan), which means it takes only a small miss on the right price (5%-8%) to move a home from active to quiet. The good news is once a home’s value is reduced to the right price range, there is enough demand that it will sell quickly (96% of asking price) and not suffer as much of a “stale market” discount as we have seen in the past, but with an extra 6-8 month time cost.

Once again, if buyers are frustrated with a lack of inventory they should not forget to focus on the 50-70% of listings that are sitting on the market. These buyers might use an FHA 203K mortgage to make the updates/repairs that are typically keeping the home from being sold.

Good numbers again for May and good momentum going into June as well.    – See the Supply and Demand Chart below

Dan Elsea
President of Brokerage Services for Real Estate One 

 

 



Choose a Realtor to Market Your Northern Michigan Home
June 10, 2012, 5:23 am
Filed under: Northern MI Lakefronts



Snag Your Lakefront Bargain in Northeastern Michigan

Vacation Home Buyers stay Close to Home

Time to Snag a Lakefront Bargain Home in Northern Michigan



Hubbard Lake Michigan

Hubbard Lake is a lake in Alcona County in Northern Michigan. The lake covers 8,850 acres and is seven miles long and two miles wide. It has a maximum depth of 85 feet with an average depth of 32.6 feet. Wikipedia

Hubbard Lake Fish Map
Things to Do in Hubbard Lake, Michigan
Lost Lake Woods Private Golf Course
White Pine National Golf Club
Hubbard Lake Restaurants
Photos of the area are compliments of Joey Randall who has been enjoying the Hubbard Lake area and Lost Lake Woods Club since she was 4 years old.   Visit Joey Randall’s Photo blog site at:  The Village Voice


What’s for Sale at Lost Lake Woods Club?

LLWC Active Listings – as of May 21, 2012

(Click on the Link Above to View the Current Inventory)

The Lost Lake Woods Club is a private, member owned, family resort and gated community located in Alcona County, in the northeastern region of Michigan’s lower-peninsula. The Club was founded in 1926 and consists of more than 10,000 acres of land, featuring five lakes, a private 18-hole golf course, an 84-site campground and a 52-room lodge with dining and banquet facilities. The community is currently home to over 500 homes and membership now exceeds 1,225 people. Members have access to ample hunting and fishing opportunities, an archery range, a rifle range, a skeet and trap facility, horse stables, swimming, snowmobiling and cross-country skiing. Life is simpler and easier up north. Get away for a weekend, a vacation, or retire with us and enjoy more of the good life!
Interested in membership in Lost Lake Woods Club? ……..Learn more by clicking here!
Robin Cutler and Kay Pearson
Realtor and Associate Broker
Lost Lake Woods Owners and Member
“Marketing Homes Worldwide”
Real Estate One Inc.
989-787-0388
KayPearson.com


Real Estate Market Update for May
May 21, 2012, 11:39 pm
Filed under: Uncategorized

May, 2012

Dan Elsea,
President of Brokerage Services
Real Estate One – Max Broock


After watching the market numbers over the past 12 months, a solid (positive) pattern has been set that appears to be spreading across the nation. The housing market, for all practical purposes, has shifted from a Buyers Market to a Sellers Market. In the five-county
Southeast Michigan market, 84% of all sales are homes that have been on the market less than 90 days. These homes are well priced and in the best condition, but also only represent 30% of the homes for sale, which means 84% of all buyers are bunched together chasing 30% of the available listings. With a limited supply of desirable homes and increasing buyer demand, good things are starting to happen for sellers, the most important of which is appreciation. (The Northwest Michigan market is about 6-8 months behind SE Michigan so the inventory numbers are not as dramatic, but the same improving patterns are still evident.)

The “average” market statistics hide the true strength of the current market. Overall, the average Months Supply of Inventory (MSI) is 4.1 months (for SE Michigan), but in reality, 84% of the market is operating with a MSI of 1.5 months while the rest of the market (70% of the homes for sale) is operating with a MSI of 18.5 months. The result is a strange world where 70% of all sellers complain about a slow market with few offers while 84% of all buyers complain about a wild market with no saleable homes to purchase. Both are correct! The reality is those 70% of the homes that are in the 18-month MSI “slow zone” are not really relevant to the market since they are not attracting much market attention.

The chart below outlines the “true” MSI for the majority of the market as well as the hidden MSI for those homes that are not priced in a saleable range.
What does that mean for a buyer? It means over bidding on list prices, sight unseen offers, waiving appraisal contingencies and pricing wars above the asking price. Most importantly, it means make your best, strongest offer the first time since we are approaching 50% of all transactions with multiple offers.

So buyers have two choices: jump in and play by the new rules of a Sellers Market – move fast, be aggressive and patient since you will most likely lose out on a few before you get one, or go after the other 70% of the listings that are sitting quietly and find that diamond in the rough.

For sellers, throw your line in the water. Don’t be crazy about the price. You might be surprised what the market will give you, but be prepared to be honest about the condition and features of your house. Buyers are willing to pay a larger premium for a home that is updated, without deferred maintenance, and with a design consistent with the neighborhood (i.e. points off for a contemporary in a Colonial neighborhood, etc.). It may be worth the time and money for some basic updates before putting your home on the market.

April of 2011 was really the start of our heated up market, but even so we still showed growth over our previous year, which was strong, and buyer demand continues to grow.