Housing Market Update October 2015

Real estate is local.  That being said, there are things that happen nationally to affect all markets.  One of them is interest rates.

USA Today ran an article today that quoted San Franciso Federal Reserve President John Williams as saying there is a “very strong case” (their quotes) for rates to rise next month – if the economy continues to improve.

Earlier this year I had the occasion to hear, in person, the National Association of Realtors Chief Economist Lawrence Yun.  He went through a ton of stats and indicators that graphically showed how much the economy has improved.  But, he said, it seems that people just “don’t feel it.”  That was holding back home sales.  Question – do you feel it? 

I’ve kept that in mind and I ask that of people I meet occasionally.  Not a lot are feeling it.  They ‘see’ it – with new construction, with homes selling quickly, once vacant strip malls filling up again, lower unemployment figures – they just don’t personally ‘feel’ it.  But let’s get back to the Federal Reserve.

The Fed’s perspective seems to be that gradual rate increases beginning now lower the risk of a run up in inflation later.  They can always stop raising rates if the economy weakens.  Bob’s Prediction – look for up to a quarter point increase in December or January.

What is happening locally?

Rental demand remains high and rental rates continue to slowly increase. I think that will continue for the foreseeable future.  First-time buyers are not the force they once were. Perhaps because they ‘don’t feel it’ yet?  I don’t know, but there are not as many of them as there used to be.

We’ve seen cash buyers decrease, too.  Sure, a lot of them were investors buying lower priced properties but there were also some higher priced buyers paying cash for move-in condition homes.  As of the end of October 2015 for Livingston County, there were a total of 2828 sales. Only 219 were cash buyers (7.7%).

I fully expect home prices to continue their rise.  Part of that is with the lower price point inventory shortage. Everything I’ve been reading says our area should see at least 3%-5% appreciation in the next year. 

Locally, Howell, Brighton and the SE Livingston County area, homes under $250,000 will continue to sell very fast if they are priced correctly (within 2%-3% of their true value).  Sellers – trying to squeak that extra percent of two from a buyer could shoot you in the foot.  Buyers today are more educated than ever before.

Tighter lending standards have also had an effect, but if you’re 680 or better you should be able to get a loan.

 If you’re a first-time buyer, I can give you a short ‘buyer information’ course that will fill in a lot of blanks with the entire home buying process.  If you have a property to sell, please contact me for a complimentary home valuation and a tailored advertising/marketing discussion.  My information is on the sidebar of this blog.  I’m a full-time residential real estate professional and a Senior Real Estate Specialist. I work western Oakland, northern Washtenaw and all of Livingston County, especially Howell, Brighton, Hartland and Pinckney. 

image courtesy of atibodyphoto/freedigitalphotos.net

Livingston County Real Estate Market

The good news is that I've been so busy that I've let my blogging fall off.  The bad news is that I've let my blogging fall off. 

Generally speaking, the housing market is finally looking up!  I know you've been reading that the number of sales is down - and that's true.  But they're down because we have such a shallow inventory.  Almost every home that I've listed in the last 9 months or so has gone under contract within 15-25 days, had multiple offers and sold for above list price.  Short sales aren't included as they take longer and have special problems for many potential buyers.

The days on market (DOM), is flat compared to last year, but average sales prices are up almost 9% for single family homes and a whopping 46% for condos. Vacant land sales have jumped, and there's a lot of new builds happening in the South Lyon area. All the while we're at extreme lows for mortgage interest rates, too.

Things are also happening with commercial properties.  Downtown Brighton is bursting at the seams.  Good luck finding a space there!  Downtown Howell has some interesting things going on, too, and there's no doubt that the Opera House project has helped a lot.  Watch for a full-fledged comeback there, soon. There are plenty of commercial spaces on major business routes in the surrounding townships, though, some in very high traffic areas.

I'm working with numerous buyers that can't find a house they want. Many of our showings get cancelled because the house goes under contract before we can get into it.  Still, it's an exciting time to be in Real Estate. 

If you have specific questions, please drop me an email or give me a call.  And I'm really looking for listings.  If you know somebody that is considering selling their home, please ask them to give me a call.

Livingston Median Sales Prices Up!

The June 2011 statistics from RealComp II,Ltd., our local multilist system (MLS) are available.

The glaring statistic I see is that Livingston County is faring a bit better than the Metro Detroit tri-county area. Detroit, Oakland and Macomb County aggregate figures indicate a 13.3% median sales price drop, but Livingston had an increase of 5.4%.

Also, Livingston County homes are selling faster. A full 68% of homes that sold actually closed within 90 days, and almost 76% closed within 120 days. Condos reported similar time frames at 67.5% for 90 day closings and 81% for 120 day closings.

The sheer numbers of listings have dropped dramatically, too. With less inventory, buyers are being more aggressive when they find a property they like. Let’s look at condominiums, which typically have a higher inventory to sales ration that detached single family homes.

In June 2009, there were 321 units available with 21 sales (6.5%). In 2010, that figure increased to 31 sales with a significantly lower inventory of 179 units available (17.3%). This June, there were 128 units available and 37 sales, for 28.9% of inventory selling.

Of course condo living doesn’t suit everybody’s life style, but for those that are a good match, they are a great option. Not sure if you’re right for condo living? Give me a call to discuss the pros and cons. Even if you are a good match for a condo, you may not be right for a certain community. My 13 years of experience in Livingston County can help you focus your search to a community that is a great match for you.