Livingston County Sales Figures – January to June - 2010 vs 2011

Single family residences (SFR) sales (detached homes) are down about 10% for the first six months of 2011 as compared to 2010. The bright spot is that both the average and median sales prices are showing nominal increases (3-4% margin), and are selling slightly faster in 2011 than in 2010.

Private sales (non short sale, non bank-owned) are up over 9% from 2010, but the overall decrease quoted above is heavily impacted by an almost 21% DECREASE in bank-owned home sales. The bank-owned sales are also selling for 6-10% less for average and median sales prices compared to 2010 and those that are selling are going about 5-6% faster than last year.

It appears to me that sellers who WANT to sell and have not been under pressure to sell may have tired of waiting for the market to improve. I know that I have had conversations with consumers that have another home, and while they can continue to make payments on both, are deciding to make the move to their next destination. Sometimes it’s for retirement, other times to be closer to family. Those of us that work with banks to sell foreclosed upon properties have definitely recognized that the supply has decreased.

Condo sales seem to be increasing in both average and median sales prices, and they are generally selling faster than last year’s pace, too. There is a 10% increase in bank-owned condo sales, but the short sales are down by over 26%. I’m not sure if that’s a sign of frustration with the short sale process (and it can be VERY frustrating), or if there are more ‘strategic defaults’ in that group of property owners.

The Real Estate market continues to change. If you’re considering either a purchase or a sale, make sure you work with a full-time Real Estate professional that is watching trends and market dynamics.

Livingston County Homes - $100K or Less

I still chuckle when I see marquee signs on Real Estate companies that say things like, “87 homes under $100,000 – Stop In For A List”. I chuckle not because they provide the list, but because the numbers can change by the day, even by the hour. New listings are coming on to the market constantly. Agents can enter new listings into the MLS 24 hours a day. And of course homes that have just gone under contract will fall off the list, too. If you're working from a list prepared two weeks ago - good luck!


But I recognize that it is a popular price range, so I thought I’d do some research as of exactly 06:52 this morning, on Tuesday, July 26, 2011. Here’s what I found.

In Livingston County there are 135 single family residences (SFRs), or detached homes, for sale in this price range. The lowest is $19,500. Located in Unadilla Twp in the southwestern corner of the County, the MLS remarks say it is not habitable and is just a shell. It was built in 1900 and is 1000 sq ft in size on a 100 x 131 ft lot.

There are also 42 condominiums for sale in this economical price range. The lowest priced is in Hidden Harbors on Green Willow St., just off Grand River across from Meijer’s in Brighton, listed at $23,900. They are smaller units in a ‘stacked’ configuration, like an apartment building.

First time home buyers looking at the low end of the housing spectrum should consider a couple of things before they start to look. First, the lower the price, the more likely it is that the house will need significant dollars to repair, even if it you can do it yourself. So when you get pre-approved (I recommend you do this before you ever look at a house), talk to your loan rep about rehab loans. If you qualify for FHA financing, there are FHA rehab programs out there, the 203K and the 203 Streamline.

The likelihood of needing repairs is quite likely and sometimes you can do repairs yourself, other times you must hire a contractor. Be prepared.

Condos are sometimes in better condition because the Condo Owners Association maintains the exterior and grounds, but occasionally there is significant interior work to be done. You also have to find out if the condo community is FHA certified. Your loan rep or Real Estate agent can do that for you. If you have to go FHA financing, there’s no point in looking in communities that aren’t FHA certified.

Investors with cash are definitely the ‘king’ for choices in the low end of the housing spectrum. They are often quite astute with estimating repair costs and they can quickly qualify or disqualify a property for their model of either renting and holding or repairing and selling. When estimating your budget, don’t forget about property taxes, homeowner association fees and maintenance. It’s always good to be able to have six months of rent in reserve for repairs and emergencies, too.

If you’re thinking about a low priced property, work with an experienced agent. I’d be happy to talk to you about your plans and formulate a search just for you.

Condo Sales Stronger

Using data reported by our local multilist service (MLS) for Livingston County Michigan, RealComp II, Ltd. through June 2011, it appears the condo market is strengthening somewhat. 

2011 YTD listings are down slightly (44) from 2010 (46) but sharply from 2009 (63).  Pending sales reported have risen from 36 in '09 to 34 in '10 and 44 YTD in 2011.  There were 21 YTD sales in 2009, 31 in 2010 and 37 YTD for 2011.

The median sales price for Livingston County condominiums for the last thre years is:  2009 - $66,000; 2010 - $86,500 and 2011 - $108,000.

I believe that much of this strengthening is due to consolidation, with almost no new units being built.  Lower end (starter) condos, i.e., built on a slab, no or 1 car garages, 'stacked' configurations are still being listed in the low to mid $50,000 price range. 

When buying a condo, especially a 'starter', be sure to work with a reputable lender and if you are going with FHA financing, get a list of communities that are FHA certified.  Many are not, and some that were approved by FHA have lost that ranking.  Don't find out after you write an offer.

Condo Living At It's Best! - 7493 Radcliffe, Brighton



You'll love life at Lake Edgewood Townhomes. Conveniently located just west of the City of Brighton, the lower Township taxes, reasonable COA fee and convenience to shopping and transportation corridors will all be yours at 7493 Radcliffe in Genoa Township.
Don't let the unassuming front view fool you. Walk in to a vaulted ceiling living room with a floor to ceiling stone fireplace treatment. Enjoy the four season sun room with view backing to woods.  Two bedrooms and two full baths with an ample sized kitchen complete space. First floor laundry facilities are available, although currently located in the walk out basement, which is rough plumbed and studded - ready to finish (blueprints available).

Minor work being completed, call agent for details.

New Listing - 3981 Swarthout, Pinckney, MI 48169

This1850-built farmhouse sits on 2.2 acres, has paved road frontage and gives you that rural feel but is conveniently located close to schools and shopping.  4th, non-conforming bedroom upstairs. Updates include septic tank and water heater, a 1997-built detached 2 car garage with over 600 sq ft of finished space that would be perfect for an office. The HVAC system has been sized to allow for finishing the loft space in the future.

Two horses would be allowed on this property, and there is a 1 acre meadow behind the fenced yard.  Pinckney schools and zip code, Hamburg Township location.  If you've been looking for country living with modern conveniences, this house is for you! MLS# 21107825

Wells Fargo Session

Today I went to a Wells Fargo (WF) Real estate Owned (REO) session in Southfield. There were a few interesting stats that were shared with us.

First, (and no surprise to readers of my blog) is that time on the market has dropped dramatically for WF foreclosure listings. In 2009, the average time on market was 126 days, in 2010 it was 86 days, and so far in 2011 it is 47 days.

WF has only 566 foreclosure homes for sale in Michigan at this time. I thought that was a low number. Part of it may be due to the fact that their loan modifications are up, and over 80% of loan mods are classified as ‘non-HAMP’. HAMP = Home Affordable Modification Program, run by the U.S. Department of Treasury. It is the program that’s been getting bad press for low success rate in helping consumers. Hmm, high number of non-HAMP loan mods and lower foreclosure inventory. Compare that to some other banks’ figures.

Wells Fargo sells its own foreclosures, but acts as a servicer for other investment groups, too. In fact, over 70% of properties they handle are loans from other grouops.

I am impressed by their willingness to do things to make homes more marketable, even when it doesn’t get them more money. They seem to have a genuine interest in getting owner-occupants (not investors) into their properties and in helping to re-stabilize neighborhoods.

Wells Fargo and their Premiere Asset Services division won big last month at HousingWire’s awards for Real Estate management firms and corporate Real Estate departments. It was the second year of the awards.

Livingston Median Sales Prices Up!

The June 2011 statistics from RealComp II,Ltd., our local multilist system (MLS) are available.

The glaring statistic I see is that Livingston County is faring a bit better than the Metro Detroit tri-county area. Detroit, Oakland and Macomb County aggregate figures indicate a 13.3% median sales price drop, but Livingston had an increase of 5.4%.

Also, Livingston County homes are selling faster. A full 68% of homes that sold actually closed within 90 days, and almost 76% closed within 120 days. Condos reported similar time frames at 67.5% for 90 day closings and 81% for 120 day closings.

The sheer numbers of listings have dropped dramatically, too. With less inventory, buyers are being more aggressive when they find a property they like. Let’s look at condominiums, which typically have a higher inventory to sales ration that detached single family homes.

In June 2009, there were 321 units available with 21 sales (6.5%). In 2010, that figure increased to 31 sales with a significantly lower inventory of 179 units available (17.3%). This June, there were 128 units available and 37 sales, for 28.9% of inventory selling.

Of course condo living doesn’t suit everybody’s life style, but for those that are a good match, they are a great option. Not sure if you’re right for condo living? Give me a call to discuss the pros and cons. Even if you are a good match for a condo, you may not be right for a certain community. My 13 years of experience in Livingston County can help you focus your search to a community that is a great match for you.