Brighton Country Club Annex Sub Attractive For First Time Buyers

Located in Brighton Township, just outside the Brighton City limits, this platted subdivision has been attractive for first time homebuyers for many years. Affordable ranch homes in Brighton schools, convenience to retail shopping and easy access to Interstate 96 and US 23 are some of the draws.

The boundaries are roughly Grand River Avenue to the south, Interstate 96 to the north, Old US-23 to the east, and the Brighton City limits to the west, and there are 179 homes in this sub. The Brighton Country Club subdivision is on the other side of I-96 and not included in this post.

The streets are all public, so they’re maintained by either the road commission or the township. Originally, the subdivision was served by community wells, but in January 2008, water service was transferred to the Livingston County Water Authority. The lots are predominantly 60 ft wide by 132 feet deep, although some are 90 feet wide. Some of the homes also have basements, but there are also some built on crawlspaces or slabs. Garages (when present) are typically two car variety and are most often detached. Most of the streets do not have through traffic, except for Burson which empties to Old US 23 on the east, and at Leland just north of Grand River on the west.

The housing stock consists of mainly ranch style homes in the 900-1200 sq ft range, most with three bedrooms and one full bath. You can find a few 1400+ sq ft homes, and some will offer an additional half or even full bath, but those are somewhat rare.

In 2008 there were 5 sales reported in the local MultiList System (MLS), all purchased by owner occupants with either FHA or conventional mortgages. The average sold price was $114,310 and the average time on market was 99 days. There were also 5 sales in 2009, but three were to investors buying for cash and the average sales price had plummeted to $67,010. Sales picked up in 2010 with 10 being reported. Three of these were investor-bought at an average price of $45,758. The other 7 were bought on either FHA (1), conventional (1) or USDA Rural Development (5) loans and were for owner occupants. The average price for these seven homes was $87,868.

So far in 2011 (as of 10/09/11), there have been 13 sales, 7 of which were to investors at an average price of $48,650, the rest going to owner occupants with an average sales price of $84,833. Many of the investor properties end up being rentals in the $800-900 range, but a few end of getting “flipped” to owner occupant buyers. The price disparity between investor purchased and owner occupant purchased homes shows that people are willing to spend more money for homes in better condition. If you don’t have the experience, time or money to do major renovations or big “DIY” projects, that is the way to go.

This neighborhood has become more affordable since the housing downturn, and with its location in Brighton Schools, the lower township property taxes, and a location that is great for commuters to Ann Arbor it has remained popular. Right now there are four for sale varying in price from $49,900 to $85,000. If I can assist you in your home search, please feel free to contact me via email or facebook.

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.

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.

Livingston County Market Stats – Through May 2011

Using data from our Multiple Listing Service (MLS), Realcomp II, Ltd., we are seeing a continuation of the existing trend of lower inventory and shorter time on the market.

Through May, and comparing years 2009, 2010 and 2011, inventory has gone from a year to date (YTD) figure of 2840 in 2009 to 2455 in 2010 and the current 2150 for 2011. That’s a drop of just over 24% in the last two years.

Both the total number of residential sales and the total sales volume (price of all sales combined) is lower in 2011 vs. 2010, almost 9% lower for number of sales and 6.5% lower in sales volume, but the average sales price is up about 2% for 2011 and the median sales price is just slightly up over 2010 as well. That's likely an indication of higher overall prices on a per sales basis.

Days on the market continue their decline, too. In 2009 it was taking an average of 135.2 days to sell homes. That dropped to 125.6 days in 2010 and this year it’s at 119.2 days. That represents a home selling about two weeks faster than just two years ago.

For buyers seeking a home for $100,000 or less, the news is not good at all. In 2010 (through the end of May), there had been 330 homes sold in this price range. In 2011, there had been 284, an almost 14% drop. Part of this is due to lower inventory, but some of it is also due to the fact that lower priced homes tend to get multiple offers and may be bid up and over that $100,000 price mark. That’s another reason for buyers to be ready to move quickly when they find the right house.

If you're going to be looking for a house soon, work with somebody that understands the dynamics of today's market and can help you create a winning plan.  My success rate with buyers is very good.

Is The Real Estate Market Rebounding?

We measure inventory in terms of "months of supply". Example: If there are 100 units available and an average of 10 units are sold each month (for the last year), that's 100/10=10 month supply. For those of us in the industry, a 6 month supply of homes (or condos) is considered a balanced market. Less than a 6 month supply is a seller's market, longer than 6 months is a buyer's market. Of course, that's a very general guideline, but it works most of the time.

Here's some information that was discussed at my company's sales meeting yesterday. From calendar year 2009 to calendar year 2010, the inventory of detached single family residences (SFR) in Livingston County (MI) dropped by 17.5%, from 8.0 to 6.6 months of supply. Likewise, the condo supply dropped from 7.9 to 5.8, or by 26.5%.

In Oakland County, the SFR went from 7.0 to 5.8, or a 17.1% drop while condos went from a 9.4 month supply to 5.6 months - a whopping 40.4% drop in inventory!

Washtenaw also saw drops, although more modest. For SFRs it was from 7.4 in 2009 to 6.9 in 2010, a 6.6% reduction. Condos went from 9.1 to 6.1 months supply, or a 24.2% reduction.
Now we know that 2010 was still a big year for foreclosures and that not as many foreclosures came on the market for resale. Banks seem to be hanging on to some of the inventory, keeping them off the market. But I don't think that accounts for all of these figures.

We have historically low interest rates (although they are creeping back up), low purchase prices, lower inventory, and judging by our collective calls and inquiries there is strong buyer demand.

My personal experience is that when a property gets to the 'right' price it will create a multiple offer situation. I've recently been in situations where one of my listings had 6 competing offers, another 4. As a buyer's agent, I've been there, too. My feeling is that the housing market is starting to rebound, although we're certainly not in the clear yet. 'Rebound' is in terms of the number of sales, not sales prices, which remain pretty low. What do you think about the real estate market or the economy in general?

Market Observations For Howell Zip Code 48843

For homes in the Howell zip code 48843 (basically the Howell area south of M-59), there are some interesting contrasts between 2007 and 2008.

The total number of homes sold are pretty close, 370 in 2007 (through 12/31/07) vs. 378 in 2008 (through 12/4/2008). The fact that the total number of sales has remained pretty constant is a good sign by itself. With lenders getting tougher on loan requirements, required down payments and more underwriting scrutiny it shows that there are still buyers out there looking for homes - and they're able to buy!

If we look at just the foreclosed (also known as bank-owned or REO) homes, the picture is more grim. In 2007, there were 47 bank-owned home sales of the 370 total, or about 13%. For 2008, we’ve seen 115 bank-owned home sales out of the 378 total, or 30%. That’s more than double last year’s rate and this year’s data is not complete at this point.

The median price dropped from $209,750 to $170,000 (a 19% reduction) for those same time periods. That’s a huge drop in value, undoubtedly influenced by the higher number of foreclosures. But there’s also the fact that owner-occupied homes are dropping in price, too, as the entire housing market loses value.

The time to sell a home went down– from 145 days in 2007 to 134 in 2008 So, homes that sold did so about 8% faster in 2008 - a small bright spot, anyway.

If you absolutely have to sell, expect to take a hit from what your home was worth 2 years ago. At least 20%-25% is not uncommon, and it may be even more.