Here’s an example of upgrading, going cheap – and paying the price - twice.
I use a Motorola Q smart phone. I love it. I was one of those ‘tethered’ users, though. Always had the hard-wired earbud in my ear. I decided to go Bluetooth. What the heck, the technology had been out there for a while, everybody’s using them (or so it seems) and I tried walking away from my desk with the phone dragging behind me for the last time.
I didn’t take the time to really check into the devices, just went to my local Staples, found a ‘cost-effective’ device and started using it.
I found that as I now wirelessly wandered around the office (now leaving my phone on my desk as opposed to dragging it behind me) I lost the pairing of the phone and Bluetooth when I went too far away. It wouldn’t automatically re-connect when I got back in range, either. So I’d have to go through the sequence again, enter the pairing code, etc., and it would be fine – until I wandered away again. I do that a lot.
Then one day, my cat did me a huge favor. Attracted by the blue blinking light, she jumped onto the dresser and started scooting the little device around. She knocked it to the floor, and scooted it someplace where it is un-findable. (This is my best guess at what happened, there were no eye-witnesses or web cam footage to claim otherwise.)
I decided to check into a new Bluetooth earpiece (I couldn’t work without one) and found one made by – Motorola! – the same manufacturer as my phone. This one was about twice the money, but it is great. It has a mouthpiece/microphone that folds up and closes and actually turns the device off to save battery power. If I wander out of range, it re-connects to the phone within about 5 seconds of getting back into range. No more fiddling around a dozen times a day to re-pair the devices. I can even close the mouthpiece to turn it off, re-open it and it will reconnect if I’m within range.
There are many fine manufacturers that make replacement parts and accessories for technology purchases. In this case, while the first Bluetooth unit worked, it had serious functional shortcomings for me. Perhaps it would have been fine with another make or model cell phone. It turned out that the best solution for me was to go with the OEM (original equipment manufacturer) brand. I’m sure there are dozens of similar stories out there.
I now safely store my Bluetooth unit in a little covered box when I get ready to retire. It rests comfortably next to my Realtor® pin and a few other small items. The cat still looks for interesting things on top of the dresser, and I don’t discourage her. I’m waiting to see what else she can teach me.
Friday, December 19, 2008
Monday, December 15, 2008
Howell Condo Market – Buyers Market!
Whether you’re a Real Estate Professional or an interested consumer, you’ve likely noted that the condo market is glutted and has more potential deals than the larger total housing market.
Looking at condominiums that are located in the two Howell, MI zip codes (48843 and 48855) we can see how badly condos are faring in the current economy.
In calendar year 2007, there were 55 condominium sales recorded in the RealComp MLS. They showed an average sales price of $127,756, a median sales price of $120,000, and a total sales volume (total sales dollars for all 55 sales) of $7,026,554.
In 2008 (through 12/14/08), there were 48 sales with an average sales price of $85,543, a median sales price of $82,950 and a total sales volume of $4,106,053.
These are tremendous one-year drops in value by any standard. The average sales price is down 33%, the median is down almost 31% and the sales volume has dropped over 41%! To make it worse, with 214 units available in these areas right now, there is over a 53 month supply of condominiums (214 available divided by 48 sales this year for 12 months, or an average of 4 sales/mo).
Foreclosed unit sales in this area have tripled, from 6 in 2007 to 18 in 2008.
New construction has essentially stopped, and some builders/developers have either lost unsold units to foreclosure, gone bankrupt, or both. Homeowners in some condo associations are having a myriad of issues to handle, too.
If the development has not had enough units sold to invest the residents as Association Board members, the developer retains control. Some Associations are finding that while they’ve paid their monthly dues, services are not being performed (snow plowing, landscaping) because there’s not enough money in the fund.
Developers often base the starting dues on a certain number of sales per year and a maximum build out time. They may even stipend some of the early costs to get new sales in their communities. When the sales stop and there are many units left to build, it’s bad for everyone.
Built-out, established communities are also grappling with the loss of monthly dues due to bank-owned properties. When a condo goes into foreclosure, those dues stop (often dues are one of the first payment to be deferred when owners get into financial trouble, even before foreclosure). If your association is working on a tight budget and the number of foreclosed properties keeps climbing, it can really hurt the whole community. Banks do pay these back dues at closing, but it certainly creates a short-term budget crunch for the association.
There are definite deals out there in the condo market, but remember to do your homework before you commit yourself. If you’re considering a unit in a development that has a lot of empty sites, be extra careful. Once you analyze the Association budget, it may still be worth pursuing, but make sure you’ve got as much information as possible on which to base your decision.
Looking at condominiums that are located in the two Howell, MI zip codes (48843 and 48855) we can see how badly condos are faring in the current economy.
In calendar year 2007, there were 55 condominium sales recorded in the RealComp MLS. They showed an average sales price of $127,756, a median sales price of $120,000, and a total sales volume (total sales dollars for all 55 sales) of $7,026,554.
In 2008 (through 12/14/08), there were 48 sales with an average sales price of $85,543, a median sales price of $82,950 and a total sales volume of $4,106,053.
These are tremendous one-year drops in value by any standard. The average sales price is down 33%, the median is down almost 31% and the sales volume has dropped over 41%! To make it worse, with 214 units available in these areas right now, there is over a 53 month supply of condominiums (214 available divided by 48 sales this year for 12 months, or an average of 4 sales/mo).
Foreclosed unit sales in this area have tripled, from 6 in 2007 to 18 in 2008.
New construction has essentially stopped, and some builders/developers have either lost unsold units to foreclosure, gone bankrupt, or both. Homeowners in some condo associations are having a myriad of issues to handle, too.
If the development has not had enough units sold to invest the residents as Association Board members, the developer retains control. Some Associations are finding that while they’ve paid their monthly dues, services are not being performed (snow plowing, landscaping) because there’s not enough money in the fund.
Developers often base the starting dues on a certain number of sales per year and a maximum build out time. They may even stipend some of the early costs to get new sales in their communities. When the sales stop and there are many units left to build, it’s bad for everyone.
Built-out, established communities are also grappling with the loss of monthly dues due to bank-owned properties. When a condo goes into foreclosure, those dues stop (often dues are one of the first payment to be deferred when owners get into financial trouble, even before foreclosure). If your association is working on a tight budget and the number of foreclosed properties keeps climbing, it can really hurt the whole community. Banks do pay these back dues at closing, but it certainly creates a short-term budget crunch for the association.
There are definite deals out there in the condo market, but remember to do your homework before you commit yourself. If you’re considering a unit in a development that has a lot of empty sites, be extra careful. Once you analyze the Association budget, it may still be worth pursuing, but make sure you’ve got as much information as possible on which to base your decision.
Thursday, December 11, 2008
More Local Business Good News
It looks like after many consecutive years of warmer weather and patchy snowfall that the local ski resort, Mt. Brighton, will have a great year! They opened earlier than ever before and are making snow like crazy. A week ago today they had a 16” base on the intermediate hill. Today is the first day that all hills will be open.
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!
Wednesday, December 10, 2008
Some Local Businesses Doing Well
After the daily assault of bad news, it was
really great to see recent reports of good news
for local businesses.
First, Lowry Computer Products Inc., of
Brighton (Green Oak Twp) is one of three
suppliers that won part of a $75 million multi-
year contract from the U.S. Army. Lowry has
been a bar code leader for many years and has
moved into the passive radio frequency
identification (RFID) field, too.
The contract deals with ways to track military
equipment through RFID, and Lowry is the prime
contractor. Motorola and Zebra Technologies,
Inc., of Illinois are the other two companies
listed in the agreement.
A Crain's Detroit Business article stated that
the effect of this contract for new hires,
expansion or other area impacts are uncertain at
this time - but it sure can't hurt!
Liquid Manufacturing of Brighton (Green Oak Twp)
had a site plan approved that will let the
company modify its existing building and add
additional work shifts, but will not create many
new on-site jobs.
Liquid Manufacturing is a brewing and distilling
company on Whitmore Lake Rd and is planning to
add 30 new product lines that include energy
beverages and water brands. They are at the old
Thermofil site.
really great to see recent reports of good news
for local businesses.
First, Lowry Computer Products Inc., of
Brighton (Green Oak Twp) is one of three
suppliers that won part of a $75 million multi-
year contract from the U.S. Army. Lowry has
been a bar code leader for many years and has
moved into the passive radio frequency
identification (RFID) field, too.
The contract deals with ways to track military
equipment through RFID, and Lowry is the prime
contractor. Motorola and Zebra Technologies,
Inc., of Illinois are the other two companies
listed in the agreement.
A Crain's Detroit Business article stated that
the effect of this contract for new hires,
expansion or other area impacts are uncertain at
this time - but it sure can't hurt!
Liquid Manufacturing of Brighton (Green Oak Twp)
had a site plan approved that will let the
company modify its existing building and add
additional work shifts, but will not create many
new on-site jobs.
Liquid Manufacturing is a brewing and distilling
company on Whitmore Lake Rd and is planning to
add 30 new product lines that include energy
beverages and water brands. They are at the old
Thermofil site.
Thursday, December 04, 2008
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.
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.
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