Discussing Real Estate and Topical Issues for Livingston County, Michigan
Tuesday, August 01, 2017
Sellers Market? Buyers Market?
If the demand is greater than the supply it is a sellers market. The reverse, it's a buyers market. Some times we experience a 'balanced' market. So here's how to figure it out. In real estate, if the supply of homes in a given price range is under 6 months, it is a sellers market. If the supply is around 6 months it's a balanced market. Supplies over six months is a buyers market.
Real estate practitioners talk about 'absorption'. That means that if you divide the current inventory by the number of average monthly sales for the last 12 months, you get the months supply.
Right now (8/1/2017) in Livingston County we are overall in a sellers market with a total absorption of 3 months, across ALL price ranges. But in the $151,000-$200,000 range (popular with first time home buyers), the months supply is only 1.5 months. You got it - Sellers Market!!
$401,000-$500,000 is a 5.7 month supply, or a balanced market. Go to $501,000 - $750,000 and we have 15.6 months of supply - a very strong buyers market. So you need to have a better reference point than just your whole county, or township, or city.
We can take this a step further and break down by school districts or even neighborhoods if the neighborhood is big enough. It doesn't work well in a community of 60-70 homes.
image courtesy of renjith krishnan/freedigitalphotos.net
Friday, November 13, 2015
US-23 Active Traffic Management System (ATM)
Department of Transportation (MDOT) open house regarding the US-23 Active Traffic Management (ATM) plan.
If you've ever driven the US-23 expressway to Ann Arbor in the morning rush hour, or tried to get back to Livingston County in the evening, you know what a pain it is. Designed decades ago, it carries far too much traffic today. Many entrance ramps are very short and interchanges don't work for today's traffic volume. There are an abundance of crashes due to slowing traffic near entrance and exit ramps.
There's not enough funding to do a major widening of this roadway, so the ATM system has been studied and judged to be feasible. It will include extensions/upgrades of currently deficient ramps (most of them are!), factor in pedestrian and trail pathway access to local facilities, widening and/or reconstruction of existing bridges, the lane controllers, and courtesy patrols. Part of last night's open house was to exhibit various natural landscape themes for the corridor.
Interestingly, there is also a commuter rail line effort that could help decrease commuter traffic on US-23 between I-96 on the north and M-14 on the south. Officially called the North-South Commuter Rail, it is often referred to as "WALLY", because it would serve Washtenaw and Livingston Counties, running from Howell to Ann Arbor. I understand that one very expensive part of this effort, the actual rail track upgrades is done already. As it is now, you would even be able to take your bike with you on the WALLY line, to use at your destination. But WALLY is another blog post for another day.
There were a lot of MDOT folks at the open house and visitors were encouraged to 'vote' for the aesthetic treatments they thought would best fit the corridor. Plenty of diagrams and overhead views were available, and I heard a number of attendees inquiring about noise control measures. I spoke to a MDOT representative that said this project would all be done in one piece and it was hoped to be completed by sometime in 2017. Other states are using ATM systems, but this will be the first one in Michigan.
One of the most noticeable features of the ATM is the use of a widened and upgraded left median shoulder to use for traffic. Southbound US-23 would use this 'shoulder' for morning rush hour, northbound US-23 would use their 'shoulder' for the evening rush hour. Large LED indicators would let motorists know that the lane was either open or closed. Right side shoulders would still be present and could be used for motorists having vehicle troubles. There will be set 'crash investigation' sites, too.
Once you exit US-23, you will likely find reconfigured interchanges. The Six Mile interchange will be re-worked for more logical ramp solutions. At North Territorial and again at 8 Mile Rd, a combination of a roundabout and a new 'teardrop' (elongated roundabout) configuration will be used. Bridges at Warren, Barker Rd and the CSX overpass (north of Lee Rd in Green oak Twp) will certainly be reworked, too. If you're thinking this is a large project - you're right!
You'll be hearing more about this project, and if you commute to Ann Arbor, I suspect that things may temporarily get a little bit worse, but there's also the promise that it will make the commute less stressful and more efficient. There's a ton of background info available and I've included some links below. Missing are the treatment options.
image attributions: US-23 sign - State of Michigan MDOT; ATM graphic - Washtenaw Area Transportation Study blog; tear drop configuration - MDOT Appendix A, Traffic Analysis Data, US-23 Improvements document
Tuesday, November 03, 2015
Government Dashboards Keep Citizens Informed
Monday, September 21, 2015
Realtor Confidence Index August 2015
Market activity is up vs. August 2014, but actually down a little from last month, July 2015.
Buyer traffic is up and generally we still have tight inventory supplies. In Livingston County, inventory is tight at the $250,000 and under price points, but loosens up as you climb in price.
Homes are selling faster, at an average of 47 days to go under contract with another 42 days to close. In Livingston, days on market (time to get an accepted offer) are at 60. August 2014 figures were at 65 days.
Nationally, first-time home buyers were 32% of all sales, cash sales represented 22% of all sales, investment properties were 12% and distressed properties were down to 7% of all sales.
Michigan Realtors responding to the survey feel that the outlook for detached homes and condominiums is strong for the next 6 months, but demand for townhomes will be weak. Again, real estate is local and some markets may buck this trend.
Michigan Realtors also expect to see prices increase 3%-4% over the next 6 months, and the median days on market for the survey was at 30 or less days!
Residential rents continue to rise, showing a robust market for investment property owners.
The biggest delays in settlement (actually closing a home purchase) were finance related at 47% of cases, then appraisal issues at 22%.
For home sales that 'fell apart' (didn't close), the big issues were home inspection related or environmental at 32%, then financing at 25% and appraisal issues at 13%.
Purchasing or selling a home may seem overly simple to many, but there's a veritable mine field of problems out there. If you're planning to buy or sell real estate, please work with a dedicated, full-time real estate professional to make sure you have the smoothest and most profitable transaction possible. Feel free to contact me through this page if you have any questions.
Wednesday, July 08, 2015
Walk or Run Safely To Prolong Your Life, Not Shorten It
Tuesday, March 24, 2015
Livingston County Hazardous Waste Collection Days 2015
Tuesday, July 08, 2014
Things Are Popping Around Livingston County!
Friday, October 21, 2011
Dump Your Old Electronics – Free!
They also accept old cell phones, but drop those off at my office for the ‘Cell Phones For Soldiers’ campaign. We’ve collected over 2500 cell phones so far!
This event is free to County residents, and includes small businesses with 10 or fewer employees. Many hazardous substances can be found in electronics and this proper disposal will keep those contaminants out of landfills where they might filter back into ground water.
For more information, call 517-545-9609, or visit the website at http://www.co.livingston.mi.us/SolidWaste/
Sunday, September 11, 2011
The Michigan Soybean Festival
There were swap meet vendors, an old Model A, and some tractors on display. We missed the tractor pull and the evening entertainment, but the Historical Village was open, and the soybean displays were interesting.
Being ‘city slickers’, we decided that farmers are pretty ingenious. Who else could get you to buy tickets to ‘cow pie bingo,’ a game where you literally pay to watch where a cow poops. A grid is drawn on the ground and a well fed cow then walks around and does its thing. The grid with the most ‘stuff’ is the winner. As my wife said, “at least we didn’t have to fling it or pick it up.”
And because this is a two-day event, your hand stamp was good for both days. There were a lot of other things going on in the County this weekend which likely hurt the attendance a bit, but it’s an interesting concept and has the potential to grow.
Really, it’s a celebration of farm life, and I was surprised to find that Michigan has over 2 million acres of soybeans planted and that it is our number two crop, adding about a billion dollars to the State’s economy. That’s a pretty good reason to celebrate the soybean, too.
Thursday, August 25, 2011
Market Notes – August 25, 2011
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scottchan / FreeDigitalPhotos.net |
Some survey comments conclude that investors are acting decisively while first-time home buyers seem to be demonstrating fear and indecision. The rental market in my area is robust, so perhaps investors are leveraging those conditions.
The sales price to listing price ratio for our region, the Industrial Midwest (MO, IN, IL, OH, MI) shows that damaged foreclosure (REO) properties sold at a 91% ratio. That means a $100,000 listing sold for $91,000. Move-in condition foreclosure homes did marginally better at a 93% ratio, short sales sold at a 91% ratio and non-distressed homes were at 94%.
Remember that homes in better condition sell for more money, too, so while the percentage differences are small, the ultimate purchase prices are much wider. The average sales prices on these categories are: Damaged REO - $57,938, move-in condition REO - $114,015, short sales - $150,493, and non-distressed homes sold for an average of $205,604.
If you are looking for a house, a foreclosure or short sale can be a great bargain. Just know the difference in timelines (and processes) to close, and also know that you still pretty much get what you pay for. A $57,000 house will need a lot more work than a $114,000 house.
As always, if you have real estate questions, feel free to contact me.
Monday, April 18, 2011
Great Livingston County Deals
Since today is Monday, I'll start with a couple of Monday deals. If you're in Brighton, it's hard to beat the Monday half off burgers at BoomTown Kitchen + Tap. Great burgers (just like the rest of the menu), very good value. Monday is also half off Michigan microbrew day at the BTK. They have a great selection of Michigan microbrews and most pints will be just $2.50 each. The larger sized Michigan microbrews (22 oz.) are also half priced on Mondays. The burger deal is all day, the microbrew discount is Happy Hour only (3-6pm). Remember, microbrews are a little stronger than the average beer, so don't overindulge or have a designated driver.
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photo-Bob Smith |
Have another great area Monday deal? Pass it along in the form of a comment. We'd love to be in the know.
Wednesday, December 29, 2010
Chemung Hills Golf Club & Banquet Center Sold
The facility will be operated by an outside organization but ownership will be retained by the Township and no tax dollars are expected to be used for operations.
This puts to rest the periodically turbulent proposals by investment groups to transform the 150+ acre parcel into either a residential development, or more recently, an RV park.
After a long history as a private club, Chemung Hills could no longer operate profitably in that form. It became a public golf course while it searched for possible buyers.
In 2003, two Farmington Hills developers wanted to convert it to a 300 unit residential project where home prices would start at $300,000. The lack of sewer service made that plan problematic. A 600+ site RV campground proposal came about in 2008, but again, zoning and infrastructure issues prevented it from occuring.
In the fall of 2009, the facility went into receivership and was
operated by Osprey Recreational Properties while a purchaser was sought.
This is a wonderful recreational facility and a great small to mid-size banquet facility, too. Beautiful setting, desirable amenities and good food have always been the standard here.
Oceola Township now has a great facility that should be self-supporting and will insure that we keep a great local golf course
and banquet center open.
Sunday, April 04, 2010
Preview Properties News
On April 1st, the Red Cross Blood Drive had 27 donors - no foolin'! Even though we have a sizable building, on blood drive days the Red Cross pretty much takes over the building's lobby and conference rooms.
On April 29th, from 5:30-7:30 pm, we're having an Open House and Fundraiser for Gleaners Community Food Bank. There will be appetizers, wine, entertainment and a silent auction. Put this on your calendar and bring your checkbook! This year, one in eight Michigan families will need emergency food assistance. Food collected in Livingston County stays in Livingston County. In fact, we never collect enough to feed our own hungry. Food has to be brought in from other counties to meet our needs.
And don't forget about the Livingston County Association of Realtors' Fill The Gazebo Food Drive on May 1st. Bring non-perishable food items to the Brighton Millpond. There will be people in the center lane collecting food - you won't even have to get out of your car.
Friday, January 16, 2009
Affordable Homes and Financing Programs
long time. Call it a market correction, a recession or whatever you
like, but homes are now in the best price ranges that I have seen.
Part of the equation is supply.
When I moved to Livingston County in 1988, the big wave of construction was just beginning. We had a marginally tough time finding a home that fit our needs and our budget. Almost immediately after moving in, I saw corn fields transformed into subdivisions, roads widened, traffic signals installed and more retail being developed. The recent wave of foreclosures has also added a lot of homes to the supply with very attractive pricing.
Today buyers can find something that they like without too much difficulty - from starter homes to condominiums to luxury homes.
If you're a first-time buyer or even a 'move-up' buyer, there are programs that can help you. The FHA loan program is very attractive as long as you have a steady source of income, have an employment history and a good record of paying bills.
A marginal down payment will be needed, but the interest rates on this type of loan are very good right now. While the downpayment assistance programs are gone, you can often get the sellers to pay your closing costs as part of the deal - even banks selling foreclosures are
agreeing to that. And you don't need a stellar credit rating, either.
Another option is the U.S. Department of Agriculture's Rural Home Development Program. It offers 100 percent financing but has certain income levels which you have to be below in order to qualify. It's for primary residences (occupied by you), and it's for non-urban areas. If you currently live in a central city or suburb, it's possible that your local lenders won't know about this program, although it has widespread exposure in my market areas.
If you can't meet the tighter lending requirements for a fixed rate mortgage, one of these two programs may be your avenue to home ownership. It's often difficult to figure out which is best for you, so finding a great lender with experience in both of these loan types can make the difference.
A quick internet search found this local lender who has one of the best explanations of the benefits of these type of loans. Check out http://www.44mortgage.com for an excellent primer on these loan types.
Thursday, December 11, 2008
More Local Business Good News
Skiers and snow boarders eat at local restaurants, buy gasoline, and often shop at area stores while in town for the slopes. And Brighton has a very strong retail segment between the newer developments at Grand River and Challis and the downtown area.
Many years ago (way before Brighton had ‘grown up’ development-wise), I came out for a day of skiing. I decided to take Grand River all-l-l-l the way back to Detroit. I discovered a small store just east of Brighton called Marv’s Meats. I bought a couple of items and was amazed at the quality compared to my local grocery stores.
After that, I always made sure that I could stop at Marv’s either before or after skiing to pick up some food. I imagine that there are many other winter sports enthusiasts that come to the area and make their own discoveries.
I would have never guessed that one day I’d be living in this area. Between hunting and fishing in Livingston County with my dad and uncle, and visiting Mt. Brighton in the winter with friends, I guess I got hooked!
Thursday, November 27, 2008
Hear The Bell? It May Be Me!
If you’re in the area, stop by and say “Hello!” to an Optimist – especially if it’s a cold day. We’ll be working in one hour shifts, and I can tell you that standing for an hour on a cold day is a challenge. My time slot is from 3-4pm, and I’d especially love to see you and exchange greetings of the season!
This year’s campaign kicked off on November 14th, and the goal is $145,000. The Salvation Army also runs an Adopt-A-Family program to make sure that nobody is forgotten during the Holidays.
This is just one of the many community service projects that the Brighton Optimist Club undertakes each year. Sometimes your time and energy is as important as a monetary donation (or more so!).
Contact me to find out more about the Brighton Optimist Club and the programs it conducts for the youth of the area.
Wednesday, June 04, 2008
Activity Report - First Time Buyers Driving The Market
Almost half of the sales (46%) are being attributed to first-time buyers. First-time buyers are defined by the U.S. Department of Housing and Urban Development (HUD) as:
- an individual (or spouse) with no ownership in a principal residence for the 3 years prior to the purchase of this home
- a single parent who has only owned a home with a former spouse while married
- a displaced homemaker who has only owned a home with a spouse
- an individual who has only owned a prinicipal residence not permanently affixed to a permanent foundation
- an individual who has only owned a property that was not in compliance with State, local or model building codes, and if that home cannot be brought into compliance with building codes for less than the cost of constructing a permanent structure
Condominiums continue to be a very good buy, too, although many first time buyers decline this type of home ownership because many lack basements for storage, they're intimidated by community regulations, and they don't want to pay the maintenance fees.
A future article will discuss the benefits and shortcomings of condominium ownership. If you have questions in the meantime, you're welcome to contact me directly. My blogging time has suffered due to a high increase in listing and selling activity, my community service commitments, and trying to keep a semblance of family time. You are always welcome to contact me via phone or email (available at my primary web site, http://www.RealEstateMich.com).
Thursday, April 17, 2008
Preview Properties to Host Blood Drive - May 10, 2008
Hours will be 10 am - 3pm. You can call the Red Cross office at 517-546-0326 to set an appointment, or just show up during the blood drive hours.
Preview Properties is located at 130 W. Grand River Ave., Brighton, MI 48116, at the corner of St. Paul Street.
The Livingston County Chapter of the American Red Cross web site is http://www.liv-redcross.org/index.html
Wednesday, April 09, 2008
Brighton Optimist Club Golf Outing - 5/17/08, Whispering Pines Golf Club, Pinckney
In their 30 year history, they've given out tens of thousands of dollars in scholarships, conduct an Oratorical Contest to encourage public speaking in youth, recognize area youth through their Youth Appreciation events and Public Safety professionals through Respect For Law days. The Brighton Optimist Club was also the group that started the effort towards what is now the SELCRA Meijer's Skate Park. The group is supporting the only remaining Junior Achievement Program in Livingston County.
As part of their annual fundraising efforts, they are organizing a Golf Outing for May 17, 2008. It will start at 1pm at Whispering Pines Golf Club in Pinckney. They're looking for golfers and sponsors. Please visit their online registration page at http://www.regonline.com/Checkin.asp?EventId=610749 to register to golf, or click on the 'event details' link on that page for more information. Help the Optimists help our area's youth - and have a great time while doing so.
Register as a golfer or sponsor today! The Brighton Optimist Club Foundation is an IRS-recognized 501 (c)(3) organization.
Monday, April 07, 2008
Gleaner's Food Bank - Fill The Gazebo, May 3, 2008
On May 3, 2008, you can drop off items on Main Street in Downtown Brighton. Realtor volunteers will be standing in the center lane to accept your food and monetary donations. We'll also be stationed aroudn the County at various grocery stores to accept donations.
In addition to food, the Gleaner's Food Pantry needs household items like laundry detergent, toothpaste and the like. All food collected stays within Livingston County for families in need. In fact, we can't support our own County's needs and Gleaner's has to bring additional food into Livingston to help support the demand for its services.
If you see a great sale at your local grocery store, consider buying extra to donate on May 3rd. If you have trouble making it into town that day, most Realtor offices will have drop offs available. Or feel free to call me at 810-220-1478 and I'll be happy to get your food or monetary donation collected.