Howell Market Update Jan 04 2016

This week's report shows 265 units available through the MLS. Lower than typical, but not unexpected at this time of year.  In the last 7 days there were 8 new listings on the market and 15 sold - a little more than I expected.  I think there was a lot of push to get sales in for the 2015 tax season!

The 15 sales averaged $194,448 each, or $109/sq ft - right on target for Howell.  Note that lakefront homes, new construction and homes on larger parcels will command a premium from this figure.  Watch the market update video at:   https://youtu.be/026Tc3B3L34

The MLS shows 11 rental units (homes and condos), but Howell has a lot of apartments that are not reflected in this number. Generally, apartment rents are much more competitive and a great way for renters to save for that home down payment.

Analysis:  

Buyers - yes inventory is down, but work with a full-time real estate pro that can get you into properties quickly and you'll be successful.  The lower your price range, the shorter the inventory. $200,000 and under needs quicker action than $400,000 and higher.  Consult your LOCAL agent about these market dynamics.

Sellers - DO NOT WAIT FOR SPRING.  Let me repeat that.  DO NOT WAIT FOR SPRING.  You have much lower competition right now and buyers tend to be more motivated this time of year, too.  Call me to find out about my 'Marketing Edge' program to get your home sold quickly or watch my facebook page for regular real estate news, tips and updates.

October 2015 Realtors Confidence Index

Each month the National Association of Realtors (NAR) surveys real estate professionals nationwide to get their impression of the housing market.  This report had 2,969 Realtors reply.  As a survey participant, I get a ‘sneak peek’ at the results which will be released soon.

Overall, real estate professionals reported that the market was improved compared to a year ago and that they are “broadly optimistic” for the next six months.   There is stronger buyer and seller traffic compared to a year ago and it is expected that prices will increase “modestly” in the next 12 months.

Nationally, first-time buyers accounted for 31 percent of all sales, sales for investment purposes were 13 percent, distressed sales were 6 percent and cash sales were 24 percent of all sales.

Buyers 34 and under accounted for 28 percent of home sales and nearly half of the buyers were 35-55 years old.  No surprise here, but buyers 56 and older were more likely to purchase a condo while the younger buyers preferred a single-family detached home.

Financing and appraisals are still issues. Only 64 percent of sales were settled on time as reported by survey respondents, 29 percent experienced delays, and 7 percent were terminated.  We should have a better idea of how the new financing guidelines will affect the market over the next two months or so.

Biggest issues to getting closed (delayed but eventually closed)?  18 percent financing, 13 percent inspection issues, 11 percent appraisal issues.  For the 7 percent of sales that did not complete, 32 percent were due to inspection issues and 46 percent due to financing.

Remembering that all real estate is essentially local, this information gives a great general outlook, but you need to be educated in your local market, too.  I just posted a report for the Howell Michigan area, you can watch it here.  If you have questions about the local housing market, feel free to give me a call or send me an email. My contact info is on the right bar of this blog post.

Image courtesy of keerati/freedigitalphotos.net