Sellers Market? Buyers Market?

If you're selling you definitely want it to be a sellers market.  But what does that really mean?  It's all supply and demand.

If the demand is greater than the supply it is a sellers market. The reverse, it's a buyers market.  Some times we experience a 'balanced' market.  So here's how to figure it out. In real estate, if the supply of homes in a given price range is under 6 months, it is a sellers market. If the supply is around 6 months it's a balanced market.  Supplies over six months is a buyers market.

Real estate practitioners talk about 'absorption'.  That means that if you divide the current inventory by the number of average monthly sales for the last 12 months,  you get the months supply.

Right now (8/1/2017)  in Livingston County we are overall in a sellers market with a total absorption of 3 months, across ALL price ranges.  But in the $151,000-$200,000 range (popular with first time home buyers), the months supply is only 1.5 months. You got it - Sellers Market!!

$401,000-$500,000 is a 5.7 month supply, or a balanced market.  Go to $501,000 - $750,000 and we have 15.6 months of supply - a very strong buyers market.  So you need to have a better reference point than just your whole county, or township, or city.

We can take this a step further and break down by school districts or even neighborhoods if the neighborhood is big enough.  It doesn't work well in a community of 60-70 homes.

image courtesy of renjith krishnan/freedigitalphotos.net

Government Dashboards Keep Citizens Informed

The first governmental ‘dashboard’ I saw was that for the State of Michigan.  When Governor Rick Snyder took office in 2011, he was a businessman with no prior political experience, but a lot of leadership skills and business sense.  He referred to himself, and is still known as “one tough nerd.”  Among other things, he directed the use of a dashboard to give Michigan residents a way to check Michigan’s performance and progress quickly and visually.

But Governor Snyder and Michigan were not the first to use a government web site dashboard.  That was actually President Barack Obama.  In February 2009, just a month after his inauguration, the first dashboard went up to provide some transparency for the stimulus funds of that year’s American Recovery and Reinvestment Act.  See the U.S.A. dashboard here. The current Michiganversion is more comprehensive than the original and actually there are now numerous dashboards for things like Education, Seniors, Health & Wellness, Financial Health, Safety, etc.

Since then, Livingston County has also established adashboard for residents, too.

This tool was used in business as far back as the 1980’s, although not the internet-type we see today.  Dashboards can provide great visuals that are easy to understand, but they are dependent on the use of quality, and often standardized data.  The concept has evolved since then and many sites offer the opportunity to download raw data in spreadsheet and other formats for further analysis.

If you’ve never seen a dashboard, it’s worth a quick look.  Links have been provided as appropriate throughout this article.

Images courtesy of State of Michigan

Realtor Tours Local Haunted House For Professional Reasons?

A haunted house gets your heart pumping, sharpens your senses and raises your awareness of the surroundings.  And since I’m a full-time real estate professional, I figured I shouldn’t ignore this particular type of house any longer. 

Last night, my wife and I went to the Terrorfied Forest in Pinckney, Michigan with our friends Kelly & Lisa. We also toured Bubbles Fun House.  I should mention that these attractions are not for children.  They are geared for teens and adults.

We started with Bubbles Fun House.  It takes about 20 minutes to get through and there is literally a surprise around every corner.  Sometimes the surprise jumps out at you. Sometimes you’re ‘decoyed’ and distracted. But there’s a lot of suspense in here. I don't think the decor would have much appeal for a home buyer, but you never know.

Both facilities have a few simple rules.  The monsters will not touch you, so please don’t touch them or the props.  No lights or cell phones can be used. Listen to the staff and security that seems to be just a few paces from you, no matter your location (many of them are unseen unless they want to be seen, bwahahaha).  Prices are $20 for the Terrorfied Forest and $10 for the haunted house but a combo is only $25.  It was well worth it, too.

Dress for the weather since the Terrorfied Forest is a lot longer than the haunted house.  They claim it’s about 40 minutes and 1 mile of walking and I believe it.  We spent a good 15-20 minutes trying to exit the ‘maze house’ at the end of the forest tour.  And we had lots of company!

Patrons are spaced out so groups remain fairly small and the staff was very polite while doing their scary, ghoulish tasks.  Weather may affect the forest tour, but the haunted house is open unless there is lightning and/or driving rain.

They’re open Friday-Sunday through October 31^st and located at 145 Swarthout Rd, Pinckney 48169.  It’s just off the NE Corner of Pinckney Rd (D-19).  Call 734-878-3737 for more info.  And they will have a special opening for Friday the 13^th in November, too.  Check out their facebook page and their website.

Oh, and by the way, yes I uttered a few shrieks of surprise at various times.  Just to be safe you should use the rest room before entering. It wasn’t the worst house I’ve ever toured in my real estate career, but it was definitely the scariest. 

I don’t think I’d be of much professional help if you were looking to buy a real haunted house, but if you’re looking to buy or sell any other houses or condos, give me a call.  Those I can handle.

Image courtesy of Terrorfied Forest facebook page.

Realtor Confidence Index August 2015

Every month, the National Association of Realtors does a nationwide survey. For August, 3,065 Realtors answered.  We know that real estate is local, but nationwide trends are interesting to see, too. This report will be available to the public shortly, but here's a sneak peek.

Market activity is up vs. August 2014, but actually down a little from last month, July 2015.

Buyer traffic is up and generally we still have tight inventory supplies.  In Livingston County, inventory is tight at the $250,000 and under price points, but loosens up as you climb in price.

Homes are selling faster, at an average of 47 days to go under contract with another 42 days to close.  In Livingston, days on market (time to get an accepted offer) are at 60. August 2014 figures were at 65 days.

Nationally, first-time home buyers were 32% of all sales, cash sales represented 22% of all sales, investment properties were 12% and distressed properties were down to 7% of all sales.

Michigan Realtors responding to the survey feel that the outlook for detached homes and condominiums is strong for the next 6 months, but demand for townhomes will be weak.  Again, real estate is local and some markets may buck this trend.

Michigan Realtors also expect to see prices increase 3%-4% over the next 6 months, and the median days on market for the survey was at 30 or less days!

Residential rents continue to rise, showing a robust market for investment property owners.

The biggest delays in settlement (actually closing a home purchase) were finance related at 47% of cases, then appraisal issues at 22%.  

For home sales that 'fell apart' (didn't close), the big issues were home inspection related or environmental at 32%, then financing at 25% and appraisal issues at 13%.

Purchasing or selling a home may seem overly simple to many, but there's a veritable mine field of problems out there.  If you're planning to buy or sell real estate, please work with a dedicated, full-time real estate professional to make sure you have the smoothest and most profitable transaction possible.  Feel free to contact me through this page if you have any questions.

Today Is World Mosquito Day

Who knew that there was a day set aside for the Michigan State bird?  Just kidding, but some years it feels that way.  Today is World Mosquito Day, established in 1897 to raise awareness about the causes of malaria and how it can be prevented.  In this part of the world, there are worse things that get transmitted by mosquitos than malaria.

Use today to review your personal environment.  Do you have areas that catch and hold water accidentally?  If you can’t change that, perhaps a mosquito trap would work.  You can also visit the American Mosquito Control Association for more information and tips.

image courtesy of vectorolie/freedigitalphotos.net

Real Estate Events - Brighton, Michigan

Yes, Preview Properties is at it again. In June and July 2010, they are offering a series of short real estate seminars geared towards the public. On Wednesday, June 16th, it'll be "What's Your Home Worth?". On Wednesday, June 23rd, "Investing In Real Estate". Tuesday, June 29th's topic will be "Careers In Real Estate".

Wednesday, June 14th will be "Buying A Home", a great one for first-time buyers, or buyers that haven't purchased a home in many years. After all, things do change and you want to be up to speed, don't you? On Wednesday, July 21st, it'll be a repat of "Investing In Real Estate". This one has Realtors, Title Company staff and lenders present to answer all of your questions.

All of the presentations begin at 6pm at our office, 130 W. Grand River Ave., Brighton, MI 48116. For reservations, or more info, call Lisa Bohlen at 810-220-1505 or email lbohlen@previewproperties.com.

Learn About Property Assessments!

Thursday, Jan 28, 2010 - 6pm, Howell HS Auditorium (1200 W. Grand River, Howell).

Understand how assessments are arrived at, legal requirements for assessments, how to appeal your assessment and more. There will be a question and answer period at the end of the presentation.

For more information: http://www.hamburg.mi.us/assessing/pdfs/presentation%20news%20release%201-10.pdf

Investing In Real Estate Seminar

Preview Properties is hosting the above seminar on Wednesday, January 20, 2010, at 6pm at our office on Brighton. Curious about investing in Real Estate? This program will give you an opportunity to hear from Real Estate professionals about the pros and cons of this investment strategy.

Preview Properties is located at 130 W. Grand River Ave., Brighton, MI. RSVP to Lisa at 810-220-1505.

Activity Report - First Time Buyers Driving The Market

Single Family Home sales in Livingston County for the period of January 1st through May 31st have increased by 6% over the same period last year. The average sales price is down 12.9%, but at the end of April that figure was at 13.7%, so it appears that we're moving in the right direction.

Almost half of the sales (46%) are being attributed to first-time buyers. First-time buyers are defined by the U.S. Department of Housing and Urban Development (HUD) as:

- an individual (or spouse) with no ownership in a principal residence for the 3 years prior to the purchase of this home

- a single parent who has only owned a home with a former spouse while married

- a displaced homemaker who has only owned a home with a spouse

- an individual who has only owned a prinicipal residence not permanently affixed to a permanent foundation

- an individual who has only owned a property that was not in compliance with State, local or model building codes, and if that home cannot be brought into compliance with building codes for less than the cost of constructing a permanent structure

Condominiums continue to be a very good buy, too, although many first time buyers decline this type of home ownership because many lack basements for storage, they're intimidated by community regulations, and they don't want to pay the maintenance fees.

A future article will discuss the benefits and shortcomings of condominium ownership. If you have questions in the meantime, you're welcome to contact me directly. My blogging time has suffered due to a high increase in listing and selling activity, my community service commitments, and trying to keep a semblance of family time. You are always welcome to contact me via phone or email (available at my primary web site, http://www.RealEstateMich.com).