Due to the expansion of M-59 to a 4 lane boulevarded roadway, this Park 'n Ride lot will close for good on February 4, 2008. The next nearest lots are at Michigan Ave and I-96, south of the Howell City Limits, and to the east on Old US-23 just north of M-59.
The project will also undertake ramp improvements at I-96 and M-59, resurface the road and make drainage improvements. Three bridges over M-59 will be totally replaced.
See this link for details. http://www.michigan.gov/mdot/0,1607,7-151-9621_11008_45330---,00.html
Wednesday, January 30, 2008
Monday, January 28, 2008
Groundhog Day Is On The Way
This Saturday, February 2nd is Groundhog Day. Groundhogs are also known as woodchucks, marmots, and even as land beavers and ground squirrels. They are widely distributed in North America, especially in the central and northeastern United States, and can weigh in between 4 and 9 pounds. There's no real relationship between woodchucks and wood. The name is believed to have originated from the Algonquin or Narraganset name for the animal, 'wuchak'.
Groundhog Day started in Pennsylvania and New York State as a prediction of how the last half of winter would proceed. If the groundhog comes out of his burrow to see his shadow, he goes back in to sleep for 6 more weeks, indicating a hard end to winter. If he sees no shadow, he remains out, forecasting a mild second half of winter.
Punxsutawney Phil of Punxsutawney, PA is the most famous groundhog weather forecaster in the United States, but Howell, Michigan has its own Woody the Woodchuck. Taking up residence at the Howell Nature Center, Woody will be making her 10th appearance this year, which could make her record 8 for 10 if she successfully predicts this year's last half of winter conditions.
Woody will appear promptly at 8:15 am, and the there is a new breakfast option available, too. $8 for adults, $6 for children under 12, and children under 2 years of age are free. if you're planning on breakfast, please call to make reservations by dialing 517-546-0249. The proceeds will support the Wildlife Programs at the Nature Center. Photos with Woody are also available for a small fee.
UPDATE: Woody's prediction was that Spring will be early this year!
Groundhog Day started in Pennsylvania and New York State as a prediction of how the last half of winter would proceed. If the groundhog comes out of his burrow to see his shadow, he goes back in to sleep for 6 more weeks, indicating a hard end to winter. If he sees no shadow, he remains out, forecasting a mild second half of winter.
Punxsutawney Phil of Punxsutawney, PA is the most famous groundhog weather forecaster in the United States, but Howell, Michigan has its own Woody the Woodchuck. Taking up residence at the Howell Nature Center, Woody will be making her 10th appearance this year, which could make her record 8 for 10 if she successfully predicts this year's last half of winter conditions.
Woody will appear promptly at 8:15 am, and the there is a new breakfast option available, too. $8 for adults, $6 for children under 12, and children under 2 years of age are free. if you're planning on breakfast, please call to make reservations by dialing 517-546-0249. The proceeds will support the Wildlife Programs at the Nature Center. Photos with Woody are also available for a small fee.
UPDATE: Woody's prediction was that Spring will be early this year!
Saturday, January 26, 2008
Huron River Watershed Council
In a few minutes, I'll be heading outside. It's Saturday morning, January 26th, and I'm off to wade in local tributaries. Yup. Why would I do that?
I'm a volunteer 'collector' for the Huron River Watershed Council, and one of their biggest events (in the Adopt-A-Stream) program is the Winter Stonefly Search. Stoneflies are aquatic invertebrates and live only in fairly clean water, so their presence is a rough indicator that a creek or river is generally 'healthy'.
Team are assembled, a leader and collector assigned (they've gone through specific training), and volunteers are added as 'pickers', to sift through the trays scooped out of the water.
Even though it's 21 degrees and snowing, we'll have a huge turnout of people looking for something to do. School-aged children with parents, environmentalists, fishermen, residents that live in the watershed all band together to make this great event possible.
For more information, see the link at http://www.hrwc.org/adopt/index.html
And don't worry about me getting cold in the water. I'll use my 5mm neoprene waders that will keep me very warm and dry
I'm a volunteer 'collector' for the Huron River Watershed Council, and one of their biggest events (in the Adopt-A-Stream) program is the Winter Stonefly Search. Stoneflies are aquatic invertebrates and live only in fairly clean water, so their presence is a rough indicator that a creek or river is generally 'healthy'.
Team are assembled, a leader and collector assigned (they've gone through specific training), and volunteers are added as 'pickers', to sift through the trays scooped out of the water.
Even though it's 21 degrees and snowing, we'll have a huge turnout of people looking for something to do. School-aged children with parents, environmentalists, fishermen, residents that live in the watershed all band together to make this great event possible.
For more information, see the link at http://www.hrwc.org/adopt/index.html
And don't worry about me getting cold in the water. I'll use my 5mm neoprene waders that will keep me very warm and dry
Random Thoughts About Buying Foreclosures
(c)2008 Robert Smith
There's no doubt that there's a lot more foreclosure properties on the market and a lot more of them are selling. This post isn't as structured as most of mine are, but here are some general observations I've made on buying foreclosures over the last few weeks.
First, look at how long a property has been in the MLS. I've seen some lenders refuse all but full price offers in the first two weeks of a listing. Why would they do this? To make sure it's priced right, or perhaps to try to spur multiple offers to get two buyers competing against either other. The number of showing a property receives in the first two weeks will tell if it's priced right. And they don't care if it's a cash offer or a mortgage-backed offer, either.
Second, when looking at the lower-end priced homes in a given area, you aren't going to be successful bidding ridiculously low. In my market area, for example, homes at $115,000 or less will probably sell within $5,000 to $7,000 of list price. It really is a waste of time to write that offer for $75,000, folks. Unless, of course, the home needs total rehabilitation, but then you have to re-add those costs into your 'project' scope.
Third, banks aren't trying to give away these properties. They are willing to wait. And if they don't sell they'll often put them up for auction. At most house auctions that I've monitored, the successful bid price is at least the price the bank would have sold the property at, anyway. Often, they sell for a higher price at auction!
If you're a first-time buyer, please think carefully about buying a foreclosure property. Let's say you're approved for $150,000 but you're monthly payment comfort level is really around an amount of $130,000. At 6.5% interest and a 30 year fixed mortgage, the difference between financing those two amounts is around $147/mo, or $821 vs. $948 on the mortgage payment.
That doesn't include property taxes, PMI, insurance, maintenance or any of the other stuff that goes along with owning a home. And often, property taxes on foreclosures have gone 'non-homestead', which adds another 19 mils to the property tax rate. Once a home is vacant, and often shortly after the Sheriff's Sale, the local assessor changes the status, so for at least part of the next year after pruchase, your property taxes will be higher.
It makes no sense for you to be looking at $160,000 or $180,000 houses thinking that you'll get a fantastic deal at your $130,000 comfort level, yet many consumers are doing this. It's a waste of time and makes the home buying process a lot more frustrating.
Get educated as to what kind of, or how much home you can buy for your price range. Look at houses, but also keep an eye on the ones that have sold. That's where the real value indication is seen. Honest, forthright discussions with a lender and a Realtor(R) that you can trust will help you get the most value in the home buying process, especially as a first-time home buyer.
There's no doubt that there's a lot more foreclosure properties on the market and a lot more of them are selling. This post isn't as structured as most of mine are, but here are some general observations I've made on buying foreclosures over the last few weeks.
First, look at how long a property has been in the MLS. I've seen some lenders refuse all but full price offers in the first two weeks of a listing. Why would they do this? To make sure it's priced right, or perhaps to try to spur multiple offers to get two buyers competing against either other. The number of showing a property receives in the first two weeks will tell if it's priced right. And they don't care if it's a cash offer or a mortgage-backed offer, either.
Second, when looking at the lower-end priced homes in a given area, you aren't going to be successful bidding ridiculously low. In my market area, for example, homes at $115,000 or less will probably sell within $5,000 to $7,000 of list price. It really is a waste of time to write that offer for $75,000, folks. Unless, of course, the home needs total rehabilitation, but then you have to re-add those costs into your 'project' scope.
Third, banks aren't trying to give away these properties. They are willing to wait. And if they don't sell they'll often put them up for auction. At most house auctions that I've monitored, the successful bid price is at least the price the bank would have sold the property at, anyway. Often, they sell for a higher price at auction!
If you're a first-time buyer, please think carefully about buying a foreclosure property. Let's say you're approved for $150,000 but you're monthly payment comfort level is really around an amount of $130,000. At 6.5% interest and a 30 year fixed mortgage, the difference between financing those two amounts is around $147/mo, or $821 vs. $948 on the mortgage payment.
That doesn't include property taxes, PMI, insurance, maintenance or any of the other stuff that goes along with owning a home. And often, property taxes on foreclosures have gone 'non-homestead', which adds another 19 mils to the property tax rate. Once a home is vacant, and often shortly after the Sheriff's Sale, the local assessor changes the status, so for at least part of the next year after pruchase, your property taxes will be higher.
It makes no sense for you to be looking at $160,000 or $180,000 houses thinking that you'll get a fantastic deal at your $130,000 comfort level, yet many consumers are doing this. It's a waste of time and makes the home buying process a lot more frustrating.
Get educated as to what kind of, or how much home you can buy for your price range. Look at houses, but also keep an eye on the ones that have sold. That's where the real value indication is seen. Honest, forthright discussions with a lender and a Realtor(R) that you can trust will help you get the most value in the home buying process, especially as a first-time home buyer.
Tuesday, January 22, 2008
Mid-January 2008 Market Update
We've been hearing a lot about the horrible housing market for sometime now. In fact, it's hard to get away from it. Television, radio, magazines, newspapers, candidate speeches - it's all over the place.
Livingston County finished 2007 with November and December reporting more sales than the same two months in 2006. As of today, (January 21, 2008), it looks like January could do the same. At this time in 2007, there were 59 sales, today we had 74. That's a pretty good increase.
It's also interesting to note that the Days on Market (DOM) went down from 169 in 2007 to 130 for the same period this year (1/1 - 1/21). Another great indicator is that about 25% of these sales were at list price or above as opposed to 17% in 2007.
We also had more homes sell within 90 days for this time period, 43 sales or 58% vs. 18 sales or 30% in 2007.
It looks like buyers have finally figured out that they can't just lowball their way to a great home. That works some of the time with some properties, but it's important to determine any property's TRUE VALUE. There are some deals in the market, but there are precious few steals.
TRUE VALUE takes into account the declining prices. It's not unusual to have buyers getting homes cheaper than the price the seller paid for it two, three or four years ago. When you find that house that you really want, have your Realtor(R) assist you in determining its market value, then go for it!
Livingston County finished 2007 with November and December reporting more sales than the same two months in 2006. As of today, (January 21, 2008), it looks like January could do the same. At this time in 2007, there were 59 sales, today we had 74. That's a pretty good increase.
It's also interesting to note that the Days on Market (DOM) went down from 169 in 2007 to 130 for the same period this year (1/1 - 1/21). Another great indicator is that about 25% of these sales were at list price or above as opposed to 17% in 2007.
We also had more homes sell within 90 days for this time period, 43 sales or 58% vs. 18 sales or 30% in 2007.
It looks like buyers have finally figured out that they can't just lowball their way to a great home. That works some of the time with some properties, but it's important to determine any property's TRUE VALUE. There are some deals in the market, but there are precious few steals.
TRUE VALUE takes into account the declining prices. It's not unusual to have buyers getting homes cheaper than the price the seller paid for it two, three or four years ago. When you find that house that you really want, have your Realtor(R) assist you in determining its market value, then go for it!
Sunday, January 20, 2008
2007 Washtenaw County Housing Market Report
Year-end information for Washtenaw County home sales is now available.
Home sales dropped in number for 2007 when compared to 2006, dropping from 3,345 to 3,062 (or 8%) and condominium sales dropped from 761 in 2006 to 660 (13%) in 2007.
Sales volume (total dollar value of all sales) on houses went from $866,132,966 in 2006 to $766,375,165 - an 11.5% drop. In the condominium category, volume dropped from $135,160,039 to $119,784,350 - an 11.3% drop.
There was a 4% increase in 'fall throughs', homes under contract that never reached closing for one reason or another, and withdrawals from the MLS increased over 9% compared to 2006 (6,083 in 2006 vs. 6,652 in 2007).
Based on information from the Ann Arbor Area Board of REALTORS® Multiple Listing Service for 2007.
Home sales dropped in number for 2007 when compared to 2006, dropping from 3,345 to 3,062 (or 8%) and condominium sales dropped from 761 in 2006 to 660 (13%) in 2007.
Sales volume (total dollar value of all sales) on houses went from $866,132,966 in 2006 to $766,375,165 - an 11.5% drop. In the condominium category, volume dropped from $135,160,039 to $119,784,350 - an 11.3% drop.
There was a 4% increase in 'fall throughs', homes under contract that never reached closing for one reason or another, and withdrawals from the MLS increased over 9% compared to 2006 (6,083 in 2006 vs. 6,652 in 2007).
Based on information from the Ann Arbor Area Board of REALTORS® Multiple Listing Service for 2007.
Sunday, January 13, 2008
December 2007 and Year-End Market Report
(c) 2008, Robert Smith
Analyzing data released by the RealComp multi-list system to its members, it appears that Livingston County finished 2007 with an small upswing.
While homes (single-family houses and condominiums) on the market were down by almost 7% from the same period in 2006 (419 homes vs. 450), total listings on the market, which includes vacant land, multi-family and commercial listings, were dead even (4698 for 2007 vs. 4695 in 2006).
In December, there was a slight rebound in both the average and median sale prices. While these are only good as a larger view, it's encouraging to see increases at the end of the year in these indicators. Comparing 2007 to 2006, the median price showed an overall drop of 8.6% from $215,667 in 2006 to $197,195 in 2007.
Houses fell from $218,900 median sale price in 2006 to $190,000 in 2007, and condominiums took a much larger hit, going from $155,000 in 2006 to $104,000 in 2007. Vacant land prices also fell dramatically, but on a significantly smaller sales (dollar) volume. This is probably due to the massive decrease in new home construction.
Another postiive indicator was in the monthly residential sales totals. Both November and December 2007 showed increases vs. the same two months in 2006, 145 in Nov 2007 vs. 130 in 2006 and 135 sales in Dec 2007 vs. 125 in 2006. The year finished with a 10.4% drop in total residential sales. The sales volume (total dollar value of all sales) fell 19.1% in this last calendar year.
We saw a lot of value drop in this last year. My personal opinion is that we'll see another 6% loss in value in calendar year 2008 in the County. In addition to more foreclosures coming into the market, tightening credit, increased scrutiny by lenders and more rigid borrower requirements may make home loans difficult to obtain for many potential buyers, even though the overall interest rates remain very good.
If you absolutely, positively have to sell your home now or at any point in 2008 be prepared to take a lot less than your last refinance or mortgage appraisal value. I'm sorry, but there it is. A full-time local Realtor that keeps their eye on market conditions in the various Livingston County home market areas (Cities, Villages, Townships and School Districts) and price ranges will be your best bet to maximize your selling price.
Buyers are poised to find some value in this market providing that they can meet the tougher new lender requirements to obtain financing. It's still possible to get 100% financing through FHA loans, but almost all other loan types are going to require some money out of your pocket. As home values continue to fall, this buyer's market will persist through 2008.
Analyzing data released by the RealComp multi-list system to its members, it appears that Livingston County finished 2007 with an small upswing.
While homes (single-family houses and condominiums) on the market were down by almost 7% from the same period in 2006 (419 homes vs. 450), total listings on the market, which includes vacant land, multi-family and commercial listings, were dead even (4698 for 2007 vs. 4695 in 2006).
In December, there was a slight rebound in both the average and median sale prices. While these are only good as a larger view, it's encouraging to see increases at the end of the year in these indicators. Comparing 2007 to 2006, the median price showed an overall drop of 8.6% from $215,667 in 2006 to $197,195 in 2007.
Houses fell from $218,900 median sale price in 2006 to $190,000 in 2007, and condominiums took a much larger hit, going from $155,000 in 2006 to $104,000 in 2007. Vacant land prices also fell dramatically, but on a significantly smaller sales (dollar) volume. This is probably due to the massive decrease in new home construction.
Another postiive indicator was in the monthly residential sales totals. Both November and December 2007 showed increases vs. the same two months in 2006, 145 in Nov 2007 vs. 130 in 2006 and 135 sales in Dec 2007 vs. 125 in 2006. The year finished with a 10.4% drop in total residential sales. The sales volume (total dollar value of all sales) fell 19.1% in this last calendar year.
We saw a lot of value drop in this last year. My personal opinion is that we'll see another 6% loss in value in calendar year 2008 in the County. In addition to more foreclosures coming into the market, tightening credit, increased scrutiny by lenders and more rigid borrower requirements may make home loans difficult to obtain for many potential buyers, even though the overall interest rates remain very good.
If you absolutely, positively have to sell your home now or at any point in 2008 be prepared to take a lot less than your last refinance or mortgage appraisal value. I'm sorry, but there it is. A full-time local Realtor that keeps their eye on market conditions in the various Livingston County home market areas (Cities, Villages, Townships and School Districts) and price ranges will be your best bet to maximize your selling price.
Buyers are poised to find some value in this market providing that they can meet the tougher new lender requirements to obtain financing. It's still possible to get 100% financing through FHA loans, but almost all other loan types are going to require some money out of your pocket. As home values continue to fall, this buyer's market will persist through 2008.
Friday, January 04, 2008
Michigan's Growth Industry - Wine!
(c) 2007, Robert Smith
Over the last few years, I've become more interested in wines in general, and Michigan wines in particular. I gravitate towards fuller bodied reds with a low relative sugar content. Of course, in Michigan you have no problem finding sweeter wines either, a fact that delights my wife.
Most people know about the Leelanau and Old Mission Peninsula areas, but there are some very good wineries in southeast and south central Michigan, too. Some, like Sandhill Cranes Vineyards in Jackson and Cherry Creek Cellars in Cement City, have their own vineyards.
Others like Pentamere Winery (Michigan's first urban winery) in Tecumseh buy grapes and do the wine-making at their site. Pentamere buys grapes only from watershed areas that drain into the Great Lakes. Stop in and talk to these guys, their passion is contagious! And take a taste of Garnet 2005 while you're there. Most red and white wine lovers will like this wine. Ask them for a tour of the basement for a fascinating look at a compact wine making operation.
There are more wineries and 'micro-wineries' opening that buy various grape juices and start the wine making process from that point, like Spotted Dog Winery in Saline. Don't let that stop you from trying some very good wines! (Their Saline River Red is a very enjoyable and affordable table wine.)
Some good general internet wine resources are CatchWine.com , WinesAndVines.com, and MichiganWines.com - website of the Michigan Grape and Wine Industry Council. The Benson Marketing Group (www.BensonMarketing.com/enews_monitor.html) serves the wine industry and has three different eNewsletters that you can receive in the General, Direct Shipping, and Wine Afficionado categories.
Over the last few years, I've become more interested in wines in general, and Michigan wines in particular. I gravitate towards fuller bodied reds with a low relative sugar content. Of course, in Michigan you have no problem finding sweeter wines either, a fact that delights my wife.
Most people know about the Leelanau and Old Mission Peninsula areas, but there are some very good wineries in southeast and south central Michigan, too. Some, like Sandhill Cranes Vineyards in Jackson and Cherry Creek Cellars in Cement City, have their own vineyards.
Others like Pentamere Winery (Michigan's first urban winery) in Tecumseh buy grapes and do the wine-making at their site. Pentamere buys grapes only from watershed areas that drain into the Great Lakes. Stop in and talk to these guys, their passion is contagious! And take a taste of Garnet 2005 while you're there. Most red and white wine lovers will like this wine. Ask them for a tour of the basement for a fascinating look at a compact wine making operation.
There are more wineries and 'micro-wineries' opening that buy various grape juices and start the wine making process from that point, like Spotted Dog Winery in Saline. Don't let that stop you from trying some very good wines! (Their Saline River Red is a very enjoyable and affordable table wine.)
Some good general internet wine resources are CatchWine.com , WinesAndVines.com, and MichiganWines.com - website of the Michigan Grape and Wine Industry Council. The Benson Marketing Group (www.BensonMarketing.com/enews_monitor.html) serves the wine industry and has three different eNewsletters that you can receive in the General, Direct Shipping, and Wine Afficionado categories.
Free Radon Test Kits
The Livingston County Health Department is giving away free radon test kits through the end of January 2008. They can be picked up at the County's East Annex at 2300 E. Grand River, at Chilson.
Radon is a colorless, odorless gas that can cause lung cancer. It is estimated to be present in one of every five homes in Livingston County. Radon gas accumulates in the lower level of the home (basement) and enters via cracks in the foundation or the sump. It can also be found in homes built on a slab, and is easily remediated by qualified firms.
All homes should be tested for radon, especially if you spend significant time in the basement. January is National Radon Action Month.
For more information please check this link to the Indoor Air Quality section of the Environmental Protection Agency's (EPA) web site, this page at the Michigan Department of Environmental Quality (DEQ), and to the Livingston County Health Department web site.
Radon is a colorless, odorless gas that can cause lung cancer. It is estimated to be present in one of every five homes in Livingston County. Radon gas accumulates in the lower level of the home (basement) and enters via cracks in the foundation or the sump. It can also be found in homes built on a slab, and is easily remediated by qualified firms.
All homes should be tested for radon, especially if you spend significant time in the basement. January is National Radon Action Month.
For more information please check this link to the Indoor Air Quality section of the Environmental Protection Agency's (EPA) web site, this page at the Michigan Department of Environmental Quality (DEQ), and to the Livingston County Health Department web site.
Wednesday, January 02, 2008
Investors - Be Careful Out There!
This afternoon, I dropped off an executed purchase agreement to an area lender who was working with a buyer. While there, I took a few minutes to compare notes with the loan officer. We talked about the housing market in general, the tightening of requirements by underwriters, and our prospects of what 2008 will hold for the industry.
The talk came around to investors who are having the same problem that many homeowners are experiencing - time to refinance but there's not enough equity in the property with dropping values. Making it somewhat worse is that there are fewer recent solds to use as a basis for determining value.
A good rule of thumb for any investor is to critically examine a property's cash flow. Don't just think about the old PITI guidelines - Principal, Interest, Taxes and Insurance. Build in a vacancy rate in case you have turnover. If you have a single unit house, one month's vacancy is 8.3 percent for the year. Are you able to comfortably carry the payments without rental income for a month? How about two months?
Before you buy, do a rent survey to see what rent prices are working and how long it's taking to fill vacancies. Add a certain amount for routine maintenance, even if you require tenants to do things like lawn care and snow removal. And don't forget about start-up repairs or remodeling that you may have to do rent a home.
It's a wonderful time to buy investment properties, but keep cash flow as your number one goal. Number two should be likelihood of and rate of appreciation. Number three is a 'no-brainer' - the tax benefits you'll get from owning investment property.
By the way, we think that 2008 will see property values continue to drop (at least through mid-year) unless there is a strong stimulus to jog the economy. And another quarter point interest rate cut by the Fed won't qualify! Again, if you're looking to move up to a larger more expensive home, buy a vacation home or investment property, the first six months of 2008 should be that time.
The talk came around to investors who are having the same problem that many homeowners are experiencing - time to refinance but there's not enough equity in the property with dropping values. Making it somewhat worse is that there are fewer recent solds to use as a basis for determining value.
A good rule of thumb for any investor is to critically examine a property's cash flow. Don't just think about the old PITI guidelines - Principal, Interest, Taxes and Insurance. Build in a vacancy rate in case you have turnover. If you have a single unit house, one month's vacancy is 8.3 percent for the year. Are you able to comfortably carry the payments without rental income for a month? How about two months?
Before you buy, do a rent survey to see what rent prices are working and how long it's taking to fill vacancies. Add a certain amount for routine maintenance, even if you require tenants to do things like lawn care and snow removal. And don't forget about start-up repairs or remodeling that you may have to do rent a home.
It's a wonderful time to buy investment properties, but keep cash flow as your number one goal. Number two should be likelihood of and rate of appreciation. Number three is a 'no-brainer' - the tax benefits you'll get from owning investment property.
By the way, we think that 2008 will see property values continue to drop (at least through mid-year) unless there is a strong stimulus to jog the economy. And another quarter point interest rate cut by the Fed won't qualify! Again, if you're looking to move up to a larger more expensive home, buy a vacation home or investment property, the first six months of 2008 should be that time.
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