How's The Market in Howell? Glad You Asked

Inventory continues to decline, but that should change soon.  Right now we're at a 2016 low with 210 units available.

Last week, 19 new listings hit the market.  We also had 19 sold listings.  But with expireds, pendings and withdrawn properties, we actually lost inventory.

For the 19 sold, the average price was $211,250 or $116/square foot.  Average time on the market was 84 days, but one listing had been on the market for over 800 days (!) and if that one is excluded, the average time on the market was only 42 days. Folks, that is very, very fast.

At the risk of sounding like a broken record, here's my analysis for consumers.  

Sellers - if you're waiting for 'Spring' (look outside today, by the way), DON'T.  There are motivated buyers looking for homes and your competition is at an extreme low right now. Need or want to sell fast?  List it now.

Buyers - I know many of you are committed to other agents, and that's fine.  But please work with a LOCAL, experienced, preferably full-time agent.  Why?  Because they know the area, they don't have to drive 45 minutes to get here and they'll add real value to your home purchase.

Last year I worked with two buyers that found me after working with what could be called 'mega agents'.  The buyer agents on those 'teams' couldn't get them into homes quick enough and they had trouble reaching them by phone.  They didn't feel as if they were being taken seriously while they were ready to make the biggest purchase of their life.

If interested, you can get a list of last week's 19 new listings here, or check out my video report here.

How's The Housing Market in Howell?

Like many other parts of the country, local demand is outpacing supply.  Even with some new construction in the area, there is still not enough inventory.

Last week, there were 14 homes sold at an average price of $208,486, or $114/sq ft.  These homes sold remarkably fast on average - just 45 days!  We also had 20 new homes come onto the market.  I know what you're thinking.  Hey!  14 sold and 20 new listings?  That sounds like inventory is replenishing itself to me. 

Au contraire.  When you take into account the expired listings, those that went pending (an off-market status), and the consumer-requested withdrawals, we're at a decided net loss.  You can download the weekly new listings here and watch this week's update video here.

If you're a seller that's waiting for spring and has the ability to adapt quickly, this is a great time to list.  Motivated buyers and far less competition than you'll see in another month or two.  Feel free to request a home valuation here.

Buyers, if you're looking for a home in Howell, please consider working with a local, full-time real estate professional (like me) :-).  Working with an out-of-area agent that doesn't know anything but the basic geography will not be able to add quality to your home search.  And I practice what I preach.

Last year I had 5 outbound referrals so clients could get the best possible service by an agent from the area in which they were interested.  Why would I do that?  Because I am committed to the best possible service - and because you deserve the best possible service.

photo credit R. Smith

Money Magazine’s Best Best Places To Live 2014

Money magazine recently released this year’s list of ‘Best Places To Live 2014’. A couple of Michigan cities made the top 50.

At number 9, Rochester Hills.  Money calls it a “bucolic” place and cites the low unemployment rate (4.9% compared to the Countywide 8.1%), it’s affordable homes, and the home appreciation rate.

Ann Arbor came in at number 43. Mentioned of course, was the University of Michigan, the city’s historic neighborhoods, and its many restaurants.  Zingerman’s Delicatessen was specifically mentioned. Book stores, art venues and cinemas were noted, too. 

The report evaluated over 700 cities with a population between 50,000 and 300,000 and ranked them by using over 50 different characteristics.

Interestingly, Ann Arbor also made the top 10 (at Number 6) for Money Magazine’s 10 Best Cities for an Active Retirement.

It’s a bit of a drive from Livingston County to Rochester Hills, but if you’re in the Howell-Pinckney-Brighton area it’s under 30 minutes.  

Recent Solds in Howell Michigan

I've had some recent solds in Howell Michigan.  1282 Morning Mist in Marion Township (48843) sold for $204,000.  It was a foreclosure that was put into 'move in' condition by the bank.  Paint, carpet, kitchen appliances, refinished hardwood floors - a do-nothing-but move-in home.  Multiple offers, of course.  Great neighborhood with sidewalks and municipal services, a bit of dirt road to get to the sub (quarter of a mile perhaps), but very good location for downtown Howell and I-96 ramps.  I hate seeing foreclosed homes, but it's wonderful to see them occupied by owners that will help keep neighborhood values up.

Another one is the other side of the coin.  410 W. Clinton, a block off Grand River in the downtown Howell area was a very distressed property.  It had apparently been used as some sort of a group home.  Much deferred maintenance, shoddy repairs, and generally chopped up. It was bad enough that the bank decided (uncharacteristically) to sell it 'as is'.  Now, all bank properties are sold 'as is', but this one was without repairs because the scope of work would have been extreme.  I want to give some kudos to Paddock Builders for taking this project on.  I don't know if they'll rehab and flip it to a private owner or turn it into a rental, but it is a very large project regardless of which way it goes.  The one thing I do know is that the adjacent owners will be happy to see somebody putting some money into it and making it a viable residence again.  There's a place for everybody in this world and that applies to investors, too. Not all investors are ruthless money grubbers.  You can make a very good case for investors being transitory owners that provide stepping stones to healthier neighborhoods - in some instances.

Sometimes investors get short shrift from private owners.  You'll hear things like, "they're in it only for the money", or "they don't care about us", but my guess is the neighbors of this property will be very happy in comparison to when the prior owners had it. The important thing is that whomever owns the property doesn't let the area get dragged down.

Food for thought: Google "broken window theory", including the quotation marks.  You'll get articles pro and con for this topic, but basically the theory postulates that an abandoned home with a broken window or grafitti will cause some local residents to lower their standards of adhering to the norms of the area.  That means that small infractions (at first) result and if left unpunished they continue to escalate - all the way up to major crimes.  Food for thought, indeed.

Outdoor Projects Create More Living Space

It's time to enjoy the great summer weather in Michigan! And some of us come up with ideas to make our homes even more enjoyable.   Here's a couple of articles that may be of interest for your patio or deck space.

• 

  Smart Options: Patio Pavers

  A broad selection of patio pavers accompanies increased demand for outdoor living spaces. Read
• 

  Smart Upgrades for Decks

  A few cost-effective add-ons can give a modest deck an edge and deliver a handsome payback should you sell your house. Read

Visit houselogic.com for more articles like this.

Copyright 2012 NATIONAL ASSOCIATION OF REALTORS®

Cash Is Still King

A report in DS News quotes a study that claims 38% of all homes bought in 2011 were financed by cash, not mortgages. Tight lending criteria is likely one of the causes, but investors are also looking for ways to make their money yield better returns, too. This trend is expected to continue for the near future. And right now we’re seeing true record low mortgage rates (sub 4%)!


My own experience is that there are a lot of cash buyers who want to be owner-occupants. It’s not unusual for me to see cash offers on homes up to the $140,000 price point, so there’s a lot of competition for homes in ‘move-in’ condition.

A recently released Realtor Confidence Index for November 2011 also indicated that 28% of home purchases were cash financed. This report was based upon results obtained from just over 3,000 Realtors nationwide and is conducted monthly by the National Association of Realtors Research Division.

Please remember one very important thing. A cash offer does not guarantee that you will be the successful bidder in multiple offer situations. While it takes some uncertainty out of the equation for the seller, many sellers are still looking at the bottom line. Depending on the margin between a cash and financed offer, they may take a ‘cleaner’ and lower priced cash offer or they may take the higher priced mortgage offer knowing that it will take up to 45 days to close.

Everybody wants a deal but if you’re seriously underbidding on homes that have been on the market less than a month, you’re not going to be in the game.