There were only 5 sales in the last 7 days for the South Lyon area, so that makes a weekly report senseless. Instead, I'll talk about the year to date prices.
First, there's a lot of price variability in the market. Older, smaller homes selling for under $100,000 right up to million dollar properties. That often makes averages unrepresentative of true values. I'll give you those figures, but I think median values are a better way to go.
Watch my 3 minute market report video here.
Since 01 JAN 2016, 112 units have sold. This does not include a few for sale by owner properties and also some of the new construction that was never entered into the multilist system (MLS). For the sold properties, the median price was $299,500 and the average sales price was $290,834.
The median time on market (time from listing to sale) is 42 days, the average is 66 days. Both are pretty quick time frames.
The median price per square foot is $138 and the average is $133. The median home was 2176 sq ft, and the average was 2181.
A lot of different factors go into pricing a home. Age, architecture, updated or not, lot size - and of course, location. But you can expect to spend about $135/square foot if you want to buy an existing home in this area. That means a 2000 sq ft home will be in the ballpark of $270,000.
If you have questions about the South Lyon market, feel free to give me a call at 810-220-1478. Ask me about my Marketing Edge program if you're thinking about selling, and about my one-on-one Home Buyer Workshop if you're thinking about buying.
Keep up to date on general real estate info by visiting and liking my facebook page at http://www.facebook.com/MichiganRE.
Showing posts with label home prices. Show all posts
Showing posts with label home prices. Show all posts
Wednesday, March 23, 2016
Tuesday, October 25, 2011
Case-Schiller Annual Price Change Improvements
The just released (Oct 25 2011) Standard & Poor’s Case-Schiller Home Price Index shows their 10- and 20-city composite data recording mild improvements in home prices. August 2011 data (3.8 percent and 3.5 percent declines) was improved from August 2010 (4.1 percent and 3.7 percent declines). So yes, while prices are still going down, they are improving.
Sixteen of 20 cities in the index posted improved figures from the July data, another hopeful sign. Atlanta and Las Vegas appear to be bucking the trend with lower negative trends. Detroit (2.7%) and Washington, D.C. (0.3%) were the only two cities to show an annual gain.
Locally, for Livingston County, average sales prices are up just over 21% for 2011 vs. 2010 and up more than 19% for 2011 vs. 2009. Inventory continues to be an issue, with a 32% drop for 2011 vs. 2009 and over 20% lower for 2011 compared to 2010. Days On Market (DOM, or the time it takes to get a home sold) are also declining. So buyers that are serious have to move speedily to have the best opportunity at the house they really want to purchase.
If you’re looking for a home in West Oakland, Livingston, or North Washtenaw County, call me for a no-stress discussion of the market.
Sixteen of 20 cities in the index posted improved figures from the July data, another hopeful sign. Atlanta and Las Vegas appear to be bucking the trend with lower negative trends. Detroit (2.7%) and Washington, D.C. (0.3%) were the only two cities to show an annual gain.
Locally, for Livingston County, average sales prices are up just over 21% for 2011 vs. 2010 and up more than 19% for 2011 vs. 2009. Inventory continues to be an issue, with a 32% drop for 2011 vs. 2009 and over 20% lower for 2011 compared to 2010. Days On Market (DOM, or the time it takes to get a home sold) are also declining. So buyers that are serious have to move speedily to have the best opportunity at the house they really want to purchase.
If you’re looking for a home in West Oakland, Livingston, or North Washtenaw County, call me for a no-stress discussion of the market.
Wednesday, March 30, 2011
Existing Homes A Better Value?
Good credit scores + savings for a down payment + job security = consumers that can afford to build a new home. But tighter lending guidelines are impacting even that group. Government data suggests that a new home used to cost about 15% more than a resale home, but the difference now may be closer to 48%.
Blame a weak housing market, where existing homes are more affordable than they have been in a long, long time. Add in the foreclosures that lower prices even further, and the short sales that often see homes selling for as much as 10%-15% under market value.
On top of that, the prices of new homes have risen about 6% nationally, although prices vary quite a bit from one part of the country to another. Many of the smaller homebuilders are literally out of work, and some have lost their tradesmen to areas where work is more readily available. On top of that, the price of materials keeps increasing, too.
New homes represent a small portion of total home sales, even in a ‘good’ market. But they do add jobs not only for construction, but to the real estate, lending and home services and products areas. Think of all the new appliances, furniture and furnishings that often go along with a new home purchase.
The National Association of Realtors (NAR) February Report on Existing Home Sales (released March 21, 2011) indicates that cash sales reached a record of 33% of sales in February 2011, with 19% of sales attributed to investors. While this may seem ‘unfair’ to potential homebuyers, the investors actually help by purchasing properties that are often not financeable (they need too many or major repairs), and by repairing damaged homes they are helping neighborhoods to retain value. It’s amazing what a couple of run-down houses can do to a neighborhood.
Blame a weak housing market, where existing homes are more affordable than they have been in a long, long time. Add in the foreclosures that lower prices even further, and the short sales that often see homes selling for as much as 10%-15% under market value.
On top of that, the prices of new homes have risen about 6% nationally, although prices vary quite a bit from one part of the country to another. Many of the smaller homebuilders are literally out of work, and some have lost their tradesmen to areas where work is more readily available. On top of that, the price of materials keeps increasing, too.
New homes represent a small portion of total home sales, even in a ‘good’ market. But they do add jobs not only for construction, but to the real estate, lending and home services and products areas. Think of all the new appliances, furniture and furnishings that often go along with a new home purchase.
The National Association of Realtors (NAR) February Report on Existing Home Sales (released March 21, 2011) indicates that cash sales reached a record of 33% of sales in February 2011, with 19% of sales attributed to investors. While this may seem ‘unfair’ to potential homebuyers, the investors actually help by purchasing properties that are often not financeable (they need too many or major repairs), and by repairing damaged homes they are helping neighborhoods to retain value. It’s amazing what a couple of run-down houses can do to a neighborhood.
Tuesday, February 01, 2011
It Is Time To Buy? - Prices Near The 'Bottom' Say Economists
Yes, I know. We've been hearing inaccurate predictions about the Real Estate industry for, well, years. But this recent poll of economists seems to indicate that we're (finally!) near the bottom of the home value skid.
Analyzing external influences like the homebuyer's tax credit and data from Standard and Poor's Case-Schiller Index, thirty three economists offered their views on housing prices. Most indicate that we're at a point where home prices are 'fairly valued', the report says.
Fair values are important to buyers, especially first-time home buyers who are most often on tighter budgets and who are also looking at entry level or more affordable properties. The economists expect prices to drop about 3% more from present values and bottom out in the second or third quarter of 2011. The report also indicates that it may take a lot longer for new home sales to rebound.
The link to the article is here: http://www.mortgagenewsdaily.com/01282011_home_price_outlook.asp
If you're considering a home purchase in my market area, feel free to call me. It would be my pleasure to talk with you about your goals and to assist you in any way possible.
Analyzing external influences like the homebuyer's tax credit and data from Standard and Poor's Case-Schiller Index, thirty three economists offered their views on housing prices. Most indicate that we're at a point where home prices are 'fairly valued', the report says.
Fair values are important to buyers, especially first-time home buyers who are most often on tighter budgets and who are also looking at entry level or more affordable properties. The economists expect prices to drop about 3% more from present values and bottom out in the second or third quarter of 2011. The report also indicates that it may take a lot longer for new home sales to rebound.
The link to the article is here: http://www.mortgagenewsdaily.com/01282011_home_price_outlook.asp
If you're considering a home purchase in my market area, feel free to call me. It would be my pleasure to talk with you about your goals and to assist you in any way possible.
Thursday, November 27, 2008
REO Fallacies – Part 1
I’ve been doing a lot of REO (Real Estate Owned) properties for about two years and I encounter many misconceptions by consumers – at least from my personal experiences in dealing with bank-owned (foreclosure) properties.
First, the bank will take anything to dump a home. This is absolutely not true in most cases. (Of course, the borderline tear down is the exception.) If you’re offer is at 80% or less of the list price it will likely be rejected outright. If you’re asking for seller contributions towards closing costs, you’d better bump that price up a bit, too.
While banks don’t want to hang onto these properties, they’re just like you and I – they want the best price that the market will bear, based on condition, amenities and the like. Banks price homes in different ways, but they usually get at least two Realtor® evaluations (called Broker Price Opinions, or BPOs), and sometimes a full appraisal, too. When they list a property at a certain price, they’re fairly confident in that value.
Second, if you’re putting in an offer on a house that hasn’t been on the market before, you’d better go in close to full price for the first few weeks. Some Asset Managers will not take less than close to that amount for the first 2-4 weeks. Prices typically get reduced monthly, based on the listing agent’s Monthly Status Report. Asset Managers pay careful attention to local market trends (housing values, unemployment rates, etc.) when deciding upon a pricing strategy and the amount of the reductions.
Third, most banks have already priced the home for its condition. Sure, all of the appliances are gone, and maybe some light fixtures, too. It could have a few holes in the wallboard or carpet that is badly stained. That’s been rolled into the original pricing. If you’re on the edge with what you can afford, don’t expect the bank to bend over backwards for you to get that extra few thousand dollars to meet your pre-approval price point.
Remember, that may have been what happened to the prior owners who just lost the house – they became over-extended. As one Asset manager told me in an email that recently accompanied an offer rejection, “I can't help if they do love the house, they absolutely need to purchase something they can afford and this one they cannot, sorry.” Ouch!
More discussion in later posts, but remember that you buy these homes ‘as-is’, so be sure to get inspections done and carefully consider what you are trying to buy. Expect to pay a licensed plumber to de-winterize the home to check out the plumbing (around $100) and then to re-winterize it (another $200). This is over and above the cost of the inspection itself.
If you have questions about both the benefits and pitfalls of buying a foreclosure property, feel free to contact me.
First, the bank will take anything to dump a home. This is absolutely not true in most cases. (Of course, the borderline tear down is the exception.) If you’re offer is at 80% or less of the list price it will likely be rejected outright. If you’re asking for seller contributions towards closing costs, you’d better bump that price up a bit, too.
While banks don’t want to hang onto these properties, they’re just like you and I – they want the best price that the market will bear, based on condition, amenities and the like. Banks price homes in different ways, but they usually get at least two Realtor® evaluations (called Broker Price Opinions, or BPOs), and sometimes a full appraisal, too. When they list a property at a certain price, they’re fairly confident in that value.
Second, if you’re putting in an offer on a house that hasn’t been on the market before, you’d better go in close to full price for the first few weeks. Some Asset Managers will not take less than close to that amount for the first 2-4 weeks. Prices typically get reduced monthly, based on the listing agent’s Monthly Status Report. Asset Managers pay careful attention to local market trends (housing values, unemployment rates, etc.) when deciding upon a pricing strategy and the amount of the reductions.
Third, most banks have already priced the home for its condition. Sure, all of the appliances are gone, and maybe some light fixtures, too. It could have a few holes in the wallboard or carpet that is badly stained. That’s been rolled into the original pricing. If you’re on the edge with what you can afford, don’t expect the bank to bend over backwards for you to get that extra few thousand dollars to meet your pre-approval price point.
Remember, that may have been what happened to the prior owners who just lost the house – they became over-extended. As one Asset manager told me in an email that recently accompanied an offer rejection, “I can't help if they do love the house, they absolutely need to purchase something they can afford and this one they cannot, sorry.” Ouch!
More discussion in later posts, but remember that you buy these homes ‘as-is’, so be sure to get inspections done and carefully consider what you are trying to buy. Expect to pay a licensed plumber to de-winterize the home to check out the plumbing (around $100) and then to re-winterize it (another $200). This is over and above the cost of the inspection itself.
If you have questions about both the benefits and pitfalls of buying a foreclosure property, feel free to contact me.
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