Howell Market Update Jan 04 2016

This week's report shows 265 units available through the MLS. Lower than typical, but not unexpected at this time of year.  In the last 7 days there were 8 new listings on the market and 15 sold - a little more than I expected.  I think there was a lot of push to get sales in for the 2015 tax season!

The 15 sales averaged $194,448 each, or $109/sq ft - right on target for Howell.  Note that lakefront homes, new construction and homes on larger parcels will command a premium from this figure.  Watch the market update video at:   https://youtu.be/026Tc3B3L34

The MLS shows 11 rental units (homes and condos), but Howell has a lot of apartments that are not reflected in this number. Generally, apartment rents are much more competitive and a great way for renters to save for that home down payment.

Analysis:  

Buyers - yes inventory is down, but work with a full-time real estate pro that can get you into properties quickly and you'll be successful.  The lower your price range, the shorter the inventory. $200,000 and under needs quicker action than $400,000 and higher.  Consult your LOCAL agent about these market dynamics.

Sellers - DO NOT WAIT FOR SPRING.  Let me repeat that.  DO NOT WAIT FOR SPRING.  You have much lower competition right now and buyers tend to be more motivated this time of year, too.  Call me to find out about my 'Marketing Edge' program to get your home sold quickly or watch my facebook page for regular real estate news, tips and updates.

Is The Real Estate Market Rebounding?

We measure inventory in terms of "months of supply". Example: If there are 100 units available and an average of 10 units are sold each month (for the last year), that's 100/10=10 month supply. For those of us in the industry, a 6 month supply of homes (or condos) is considered a balanced market. Less than a 6 month supply is a seller's market, longer than 6 months is a buyer's market. Of course, that's a very general guideline, but it works most of the time.

Here's some information that was discussed at my company's sales meeting yesterday. From calendar year 2009 to calendar year 2010, the inventory of detached single family residences (SFR) in Livingston County (MI) dropped by 17.5%, from 8.0 to 6.6 months of supply. Likewise, the condo supply dropped from 7.9 to 5.8, or by 26.5%.

In Oakland County, the SFR went from 7.0 to 5.8, or a 17.1% drop while condos went from a 9.4 month supply to 5.6 months - a whopping 40.4% drop in inventory!

Washtenaw also saw drops, although more modest. For SFRs it was from 7.4 in 2009 to 6.9 in 2010, a 6.6% reduction. Condos went from 9.1 to 6.1 months supply, or a 24.2% reduction.
Now we know that 2010 was still a big year for foreclosures and that not as many foreclosures came on the market for resale. Banks seem to be hanging on to some of the inventory, keeping them off the market. But I don't think that accounts for all of these figures.

We have historically low interest rates (although they are creeping back up), low purchase prices, lower inventory, and judging by our collective calls and inquiries there is strong buyer demand.

My personal experience is that when a property gets to the 'right' price it will create a multiple offer situation. I've recently been in situations where one of my listings had 6 competing offers, another 4. As a buyer's agent, I've been there, too. My feeling is that the housing market is starting to rebound, although we're certainly not in the clear yet. 'Rebound' is in terms of the number of sales, not sales prices, which remain pretty low. What do you think about the real estate market or the economy in general?