I don't know if you saw the article in Monday's Detroit News entitled "2008 may be brutal again for Michigan real estate," but there were some interesting points made in the article, which was written by Nathan Hurst.
According to Realcomp, which is the multiple listing service most used by Southeast Michigan agents, home sales in our area have fallen 14.4 percent since 2004. But the even bigger news is the average sales price of a home in Southeast Michigan fell 17.3 percent over that same time span, 2004 to 2007. So if your home was worth 200,000 in 2004, today it would be worth 165,400. Yet, as an agent, I'm seeing homeowners and their agents, still trying to list that home for 200,000! The problem with that, is the eventual appraisal. If someone puts an offer in on that home for say 190,000 for the sake of argument and the seller accepts, within a couple of weeks, the appraiser for the buyers mortgage company is going to visit the home. That appraiser will go back 6 months to check recent sales prices in the neighborhood and they'll see that similar homes in that sub have been selling for 165 to 170,000 and they won't be able to appraise that 200,000 listing for it's 190,000 sales price. Thus, the mortgage company won't give the buyer a mortgage and THE DEAL IS OFF!!!! Sellers seem to forget the appraisal process when they price their homes and this was a good example of what COULD happen.
The Detroit News article goes on to say that new home construction in our area is at it's lowest level in 40 years. The article also says 2007 foreclosures were up 65% over 2006 figures.
But there are great bargains out there and of course, if you're a buyer, I'd love to show them to you. They are everywhere and with the Fed cutting interest rates 3/4's of a point on Monday, expect the interest rates on 30 year fixed rate mortgages to fall even further, to record lows, closer to 5% interest than to 6%.
If you'd like to learn more, give me a call at my office number, 248-526-2193 and I'd love to chat with you about the opportunities in today's real estate market.
Wednesday, January 23, 2008
Thursday, January 10, 2008
It's That Time Again
I haven't blogged anything for just over two months, so I guess it's time to crawl out of my hole, end the holiday break and vacation and put my nose to the grindstone once again!
Good news for buyers! Did you know that mortgage interest rates are back down below 6% on a 30 year fixed? I just spoke with my regular mortgage guy, Dave Tumey of Cambridge Mortgage and he tells me the rate yesterday, was 5.875% on a 30 year fixed, while today it bumped back up to 6% on the nose. So it does vary from day to day. Many in the real estate industry feel there's a lot of pent up demand out there for home buyers so with mortgage rates dropping from the 6.25 to 6.375 they were at a few months ago down to 6% and lower, maybe these buyers will start crawling out of the woodwork, just like I've crawled out of my hole to write this blog! If this is true, it means the poor real estate market we were in since mid 2005 may have finally bottomed out and there's nowhere to go but up. Just don't look for any of those special mortgage rates and "low cost" loans that were out there a few years ago. Such deals almost ran the mortgage industry and the nations economy into the ground!
I guess I'm also obligated to write something about sports so here goes, in no special order. While I've been away from blogging:
Roger the Dodger (of questions that is) has said he didn't do steroids. Do you believe him? I Don't. In his Sunday interview with Mike Wallace, he looked awful clammy to me, like he was ready to sweat bullets at any time. Good thing he wasn't attached to a lie detector then. I can't believe that Andy Pettitte, Roger's good friend and Roger were outed by the same trainer. Then Pettitte admitted to it, but Roger is still in denial.
Lloyd Carr retired as Michigan football coach and Michigan, after a 4 week search, landed Rich Rodriguez as their new head coach. Hey Rich, wanna buy a house? Congrats to Lloyd on a career well done and for that sweet win over Florida on January 1. Now if Rich can find himself a quarterback and replacements for the likes of Manningham, Hart, Arrington and Long, UM might win another 8 regular season games next year! Difficult system adjustments are ahead.
The Lions finished their season, losing 6 of their last 7, thwarting their media critics. I got sick of hearing from the media after the Lions were 3-2, that they'd lose their last 11, to finish 3-13. Then after they were 4-2, they'd lose their last 10 to go 4-12. Finally when they were 6-2, they'd lose their last 8 to finish 6-10. I saw the 2007 Lions season as a 4 win improvement over 2006 and if they win 4 more next year over this years 7 victories, watch out!!!!!
The Wings are the best team in hockey, by far, but Hockeytown has turned into a ghost town as far as attendance goes. Well gee, what did you expect, to win the Stanley Cup in January? Just shows to go 'ya how little the regular season means. It's the playoffs that count and local Wings fans have heard that song before about the Wings being hockey's best, October thru April, only to fall flat in May. And Darren McCarty isn't the answer. It goes far deeper!
Finally, that whopper of a Tiger trade with the Marlins. The Tigers get a 24 year old superstar in the making in Miguel Cabrera and a young 25 year old former Cy Young Award runner up for a handful of unproven prospects. WOW! Print your World Series tickets now Mike Ilitch! Boy the pressure on Jim Leyland in 2008 will be enough to make him smoke. Oh, wait a minute, he already does. The Tigers will be beasts in the Central, but the BoSox lie in ambush.
So that's it for blogging for now. Hopefully it won't take another 2+ months before I have something else to say. But then again, I always have something to say, it's just finding the time to do it in that's hard!
Good news for buyers! Did you know that mortgage interest rates are back down below 6% on a 30 year fixed? I just spoke with my regular mortgage guy, Dave Tumey of Cambridge Mortgage and he tells me the rate yesterday, was 5.875% on a 30 year fixed, while today it bumped back up to 6% on the nose. So it does vary from day to day. Many in the real estate industry feel there's a lot of pent up demand out there for home buyers so with mortgage rates dropping from the 6.25 to 6.375 they were at a few months ago down to 6% and lower, maybe these buyers will start crawling out of the woodwork, just like I've crawled out of my hole to write this blog! If this is true, it means the poor real estate market we were in since mid 2005 may have finally bottomed out and there's nowhere to go but up. Just don't look for any of those special mortgage rates and "low cost" loans that were out there a few years ago. Such deals almost ran the mortgage industry and the nations economy into the ground!
I guess I'm also obligated to write something about sports so here goes, in no special order. While I've been away from blogging:
Roger the Dodger (of questions that is) has said he didn't do steroids. Do you believe him? I Don't. In his Sunday interview with Mike Wallace, he looked awful clammy to me, like he was ready to sweat bullets at any time. Good thing he wasn't attached to a lie detector then. I can't believe that Andy Pettitte, Roger's good friend and Roger were outed by the same trainer. Then Pettitte admitted to it, but Roger is still in denial.
Lloyd Carr retired as Michigan football coach and Michigan, after a 4 week search, landed Rich Rodriguez as their new head coach. Hey Rich, wanna buy a house? Congrats to Lloyd on a career well done and for that sweet win over Florida on January 1. Now if Rich can find himself a quarterback and replacements for the likes of Manningham, Hart, Arrington and Long, UM might win another 8 regular season games next year! Difficult system adjustments are ahead.
The Lions finished their season, losing 6 of their last 7, thwarting their media critics. I got sick of hearing from the media after the Lions were 3-2, that they'd lose their last 11, to finish 3-13. Then after they were 4-2, they'd lose their last 10 to go 4-12. Finally when they were 6-2, they'd lose their last 8 to finish 6-10. I saw the 2007 Lions season as a 4 win improvement over 2006 and if they win 4 more next year over this years 7 victories, watch out!!!!!
The Wings are the best team in hockey, by far, but Hockeytown has turned into a ghost town as far as attendance goes. Well gee, what did you expect, to win the Stanley Cup in January? Just shows to go 'ya how little the regular season means. It's the playoffs that count and local Wings fans have heard that song before about the Wings being hockey's best, October thru April, only to fall flat in May. And Darren McCarty isn't the answer. It goes far deeper!
Finally, that whopper of a Tiger trade with the Marlins. The Tigers get a 24 year old superstar in the making in Miguel Cabrera and a young 25 year old former Cy Young Award runner up for a handful of unproven prospects. WOW! Print your World Series tickets now Mike Ilitch! Boy the pressure on Jim Leyland in 2008 will be enough to make him smoke. Oh, wait a minute, he already does. The Tigers will be beasts in the Central, but the BoSox lie in ambush.
So that's it for blogging for now. Hopefully it won't take another 2+ months before I have something else to say. But then again, I always have something to say, it's just finding the time to do it in that's hard!
Tuesday, October 30, 2007
To Sell Your House, Make It Shine
Recent stories ARE true, we definitely ARE in a downtrend in the real estate market. Since the middle of 2005 here in Metro Detroit, it's turned from a sellers market, where sellers could literally name their own price, to a buyers market where buyers can literally name their own price. There are many, many more homes on the market at this time of year, than there were at a similar time in any year, from the late 1990's to 2005. As a result, there is a "glut" of homes on the market, meaning a buyer has many homes to choose from fitting his or her needs. An example would be a buyer looking for a ranch in the $200,000 range. 5 years ago, there may have been 10 houses to look at, matching the buyer's criteria. Today, there are 40. So what to do to make your home stick out amongst the "glut.".
First and foremost, price it right. A buyer who's done their homework and a good real estate agent will know value when they see it. An agent can just look on the Multiple Listing Service, see a price in a certain neighborhood and know it's priced to high and may not even show your home. If you price your home to high with the thought of gradually reducing the price a bit at a time, you could be in for a long wait for an offer. While your house sits on the market, more and more houses are entering the marketplace making your high priced home, even less desirable.
Second, make your home sparkle. Remove the clutter and open it up. Do work both inside and out to give the home more curb appeal. Inside, paint walls, polish floors, shampoo carpeting and follow the advice of your Realtor who knows what's appealing to buyers currently out there looking, because in many cases, your Realtor is also working with buyers and he knows what their current likes and dislikes are.
Third, choose your agent carefully. Select at least 3 agents from 3 different companies to interview. Many sellers think the important thing is what commission the agent will charge. But MARKETING is the key. An agent may charge you a low commission, take a picture or two and put your home on the Multiple Listing Service and that's it! A full service broker WILL charge a higher commission, but will not only take pictures and put your home on the MLS, but will do virtual tours, put your home on many Internet websites, buy print advertising and will constantly keep you informed about what's happening in the marketplace. The full service broker could get your home sold weeks, even months faster than the "commission cheapie."
All in all, it's not easy being a seller. There are big decisions to make and I'm here to help you make the right choices!
First and foremost, price it right. A buyer who's done their homework and a good real estate agent will know value when they see it. An agent can just look on the Multiple Listing Service, see a price in a certain neighborhood and know it's priced to high and may not even show your home. If you price your home to high with the thought of gradually reducing the price a bit at a time, you could be in for a long wait for an offer. While your house sits on the market, more and more houses are entering the marketplace making your high priced home, even less desirable.
Second, make your home sparkle. Remove the clutter and open it up. Do work both inside and out to give the home more curb appeal. Inside, paint walls, polish floors, shampoo carpeting and follow the advice of your Realtor who knows what's appealing to buyers currently out there looking, because in many cases, your Realtor is also working with buyers and he knows what their current likes and dislikes are.
Third, choose your agent carefully. Select at least 3 agents from 3 different companies to interview. Many sellers think the important thing is what commission the agent will charge. But MARKETING is the key. An agent may charge you a low commission, take a picture or two and put your home on the Multiple Listing Service and that's it! A full service broker WILL charge a higher commission, but will not only take pictures and put your home on the MLS, but will do virtual tours, put your home on many Internet websites, buy print advertising and will constantly keep you informed about what's happening in the marketplace. The full service broker could get your home sold weeks, even months faster than the "commission cheapie."
All in all, it's not easy being a seller. There are big decisions to make and I'm here to help you make the right choices!
Wednesday, October 24, 2007
Let The World Series Begin!
Well, it's World Series time and I have to say I think the Red Sox will take the Rockies in 6 games or less. Now I have to be careful here, as a native New Englander and lifelong Red Sox fan, not be to biased. Boston has been going to World Series since the first one was played, back in 1903, when the then Boston Pilgrims beat the Pirates. Back then, there was no such thing as Fenway Park. The Boston franchise played it's games at the Huntington Avenue Grounds, now the site of Northeastern University. Fenway Park didn't open it's doors until April 20, 1912 and what a season that was for the renamed Red Sox in that fine piece of real estate.
One of the big differences between Detroit baseball and Boston baseball is the Tigers are not a regional team, they basically draw from Michigan, Northwestern Ohio and parts of Western Ontario and that's it. The Red Sox are New England's team, drawing fans from all six New England states and the Canadian Maritimes in what really is a regional franchise. And that's where the great 1912 Red Sox team comes in, the first Boston team to win a World Series with the nickname of Red Sox. With a roster full of New Englanders, they beat John McGraw's Giants. The 1912 Red Sox featured 2 eventual Hall of Famers, outfielders Tris Speaker and Harry Hooper, neither of whom were New Englanders. Catcher Bill Carrigan was from Lewiston, Maine. Pitcher Ray Collins who went 2-1 in the World Series and was from Burlington, Vermont. Backup 1st baseman Hugh Bradley, 4th outfielder Olaf Henriksen and 20 game winner Buck O'Brien were all from Massachusetts. There was even a Michigander on the 1912 World Champion Red Sox, utility infielder Neal Beal from Grand Haven.
Finally, one of the great clutch hitters of his era anchored the infield at third base. Burlington, Vermont's Larry Gardner! Now I met Larry in 1975 in Burlington, where I worked in radio. Here was this white haired little man, at that time age 88, at a dinner I attended and I was introduced to him. Turns out I knew little about him other than I was told he played at one time for the Red Sox. Well folks, Larry Gardner should be the third Hall of Famer from that 1912 Boston Roster. He started at third base for 4, count 'em, 4 world champions. The 1912, '15 & '16 Red Sox and the 1920 Indians. He had a lifetime average at 289 and just under 2000 career hits. A superb fielder along with his clutch hitting, Gardner, like fine wine, actually became better with age, have back to back 100+ rbi seasons with the Indians in 1920 and 1921 and his batting averages got higher as he got older. His stats stand up to any third baseman who's ever played the game!
Larry Gardner retired from major league baseball in 1924 and went back to Burlington to become head baseball coach and athletic director at his alma mater, the University of Vermont from the late 1920's until the early 1950's. The indoor track facility at the school is named for him and his former 1912 Red Sox teamate and fellow UVM grad Ray Collins, the Gardner-Collins cage. Larry Gardner was also a lifelong friend of University of Michigan baseball coaching legend Ray Fisher, who was also a native Vermonter and they annually coached against each other in the summer Northern Collegiate Baseball League, which was based in Vermont.
So when you think of regional major league teams, don't forget the Red Sox and that team of 1912, which opened Fenway with a bang, won a World Series title and with a quarter of their roster being New Englanders, earned the Boston franchise the title of "New England's Team."
For those of you who are new to Larry Gardner's name, he died in 1976 at age 89, a few months after I met him. Check out his stats for yourself by clicking on this link. You'll be amazed at what this man did in his career of basically 13 full seasons and 4 world championships, I promise you:
http://www.baseball-reference.com/g/gardnla01.shtml
He belongs in Cooperstown! Thanx......Paul
One of the big differences between Detroit baseball and Boston baseball is the Tigers are not a regional team, they basically draw from Michigan, Northwestern Ohio and parts of Western Ontario and that's it. The Red Sox are New England's team, drawing fans from all six New England states and the Canadian Maritimes in what really is a regional franchise. And that's where the great 1912 Red Sox team comes in, the first Boston team to win a World Series with the nickname of Red Sox. With a roster full of New Englanders, they beat John McGraw's Giants. The 1912 Red Sox featured 2 eventual Hall of Famers, outfielders Tris Speaker and Harry Hooper, neither of whom were New Englanders. Catcher Bill Carrigan was from Lewiston, Maine. Pitcher Ray Collins who went 2-1 in the World Series and was from Burlington, Vermont. Backup 1st baseman Hugh Bradley, 4th outfielder Olaf Henriksen and 20 game winner Buck O'Brien were all from Massachusetts. There was even a Michigander on the 1912 World Champion Red Sox, utility infielder Neal Beal from Grand Haven.
Finally, one of the great clutch hitters of his era anchored the infield at third base. Burlington, Vermont's Larry Gardner! Now I met Larry in 1975 in Burlington, where I worked in radio. Here was this white haired little man, at that time age 88, at a dinner I attended and I was introduced to him. Turns out I knew little about him other than I was told he played at one time for the Red Sox. Well folks, Larry Gardner should be the third Hall of Famer from that 1912 Boston Roster. He started at third base for 4, count 'em, 4 world champions. The 1912, '15 & '16 Red Sox and the 1920 Indians. He had a lifetime average at 289 and just under 2000 career hits. A superb fielder along with his clutch hitting, Gardner, like fine wine, actually became better with age, have back to back 100+ rbi seasons with the Indians in 1920 and 1921 and his batting averages got higher as he got older. His stats stand up to any third baseman who's ever played the game!
Larry Gardner retired from major league baseball in 1924 and went back to Burlington to become head baseball coach and athletic director at his alma mater, the University of Vermont from the late 1920's until the early 1950's. The indoor track facility at the school is named for him and his former 1912 Red Sox teamate and fellow UVM grad Ray Collins, the Gardner-Collins cage. Larry Gardner was also a lifelong friend of University of Michigan baseball coaching legend Ray Fisher, who was also a native Vermonter and they annually coached against each other in the summer Northern Collegiate Baseball League, which was based in Vermont.
So when you think of regional major league teams, don't forget the Red Sox and that team of 1912, which opened Fenway with a bang, won a World Series title and with a quarter of their roster being New Englanders, earned the Boston franchise the title of "New England's Team."
For those of you who are new to Larry Gardner's name, he died in 1976 at age 89, a few months after I met him. Check out his stats for yourself by clicking on this link. You'll be amazed at what this man did in his career of basically 13 full seasons and 4 world championships, I promise you:
http://www.baseball-reference.com/g/gardnla01.shtml
He belongs in Cooperstown! Thanx......Paul
Friday, October 12, 2007
October, the 10th and Greatest Month!
I love October. The weather in my opinion, is the best of the year. Early in the month, warm temperatures, then later crisp days and nights as winter draws near. The color of the leaves in their autumnal change lets you know that winter is just around the corner and many sports, high school and professional, start to go full bore in. In baseball, it's the playoffs and World Series and the pro basketball and hockey seasons are just beginning. The pro seasons are way to long though. I remember when I was a youngster, the World Series ended in mid October and the pro basketball and hockey playoffs finished in April.
Sports wise, the Tigers season was a disappointment in that injuries derailed them. They should bounce back strong next year with Pudge Rodriguez still there to lead. They'll find a new shortstop, possibly Cesar Izturis of the Pirates and look for them to enter the Adam Dunn sweepstakes to get a heavyweight and heavy hitting left fielder. In hockey, the Red Wings will disappoint their fans once again, with a great regular season then a slip and fall in the playoffs. When will Wing's management realize you must be competitive in the playoffs and win the occasional Stanley Cup, to keep putting fannies in the seats? It doesn't matter whether they play in the east or west, whether they are allowed to fight or not. What matters is to win cups and the Wings are now 5 seasons removed from their last title, soon to be 6.
In football, the Lions will have their ups and downs this year, but I still see them finishing at 8 and 8, which might get them into the playoffs. Michigan football will go 8-4 in the regular season, a far cry from what was expected, but Mike Hart will be one of the finalists invited to New York for the Heisman Trophy ceremonies. And the Michigan State Spartans will have a winning season and will go to a bowl game. As for the Pistons, well, they like the Wings, are getting older, but there is hope that some youth will be infused with their new draft picks. They'll be competitive again but I don't see them getting to the NBA Finals.
As a Realtor, October signifies a slow down in the selling season, a chance to put on the brakes a bit and reflect back on the year 2007. As a Realtor in the only state in the union that's in recession right now, it's been difficult and I don't see it getting any better for us, Realtors or our clients, until mid 2009, so hang in there. October is also a time to look ahead for all of us to set our sights on that new year that's just around the corner. I can't wait for the excitement of 2008, with new hope ready to burst from every seam. The elections will be upon us soon and that will also bring change.
I can't wait. I love October!
Sports wise, the Tigers season was a disappointment in that injuries derailed them. They should bounce back strong next year with Pudge Rodriguez still there to lead. They'll find a new shortstop, possibly Cesar Izturis of the Pirates and look for them to enter the Adam Dunn sweepstakes to get a heavyweight and heavy hitting left fielder. In hockey, the Red Wings will disappoint their fans once again, with a great regular season then a slip and fall in the playoffs. When will Wing's management realize you must be competitive in the playoffs and win the occasional Stanley Cup, to keep putting fannies in the seats? It doesn't matter whether they play in the east or west, whether they are allowed to fight or not. What matters is to win cups and the Wings are now 5 seasons removed from their last title, soon to be 6.
In football, the Lions will have their ups and downs this year, but I still see them finishing at 8 and 8, which might get them into the playoffs. Michigan football will go 8-4 in the regular season, a far cry from what was expected, but Mike Hart will be one of the finalists invited to New York for the Heisman Trophy ceremonies. And the Michigan State Spartans will have a winning season and will go to a bowl game. As for the Pistons, well, they like the Wings, are getting older, but there is hope that some youth will be infused with their new draft picks. They'll be competitive again but I don't see them getting to the NBA Finals.
As a Realtor, October signifies a slow down in the selling season, a chance to put on the brakes a bit and reflect back on the year 2007. As a Realtor in the only state in the union that's in recession right now, it's been difficult and I don't see it getting any better for us, Realtors or our clients, until mid 2009, so hang in there. October is also a time to look ahead for all of us to set our sights on that new year that's just around the corner. I can't wait for the excitement of 2008, with new hope ready to burst from every seam. The elections will be upon us soon and that will also bring change.
I can't wait. I love October!
Wednesday, October 3, 2007
Post Season Baseball
Well, the regular baseball season is over and I for one, was disappointed that the Detroit Tigers did not fare better in their quest to repeat as American League Champions. What my feeling is, the Tigers 2007 showing was disappointing due to injuries. Kenny Rogers gone for most of the year, Fernando Rodney out for a month and a half and Joel Zumaya missing more than half the season, cost the Tigers 10 or 12 wins in my opinion and you add those 10 or 12 wins onto their final season win total of 88 and the Tigers are Central Division champions and in the playoffs. On other Tiger issues, nice to see Jim Leyland get a contract extension and I think that will be the route the Tigers use with Pudge Rodriguez. Rather than picking up his 13 million dollar option for 2008, I think they'll extend him 3 years at around 9 or 10 million a year, keeping him in a Detroit uniform thru 2010, if Pudge will accept that. What the Tigers need more than anything now is a left handed thumper to play leftfield, a new shortstop, preferably with a great glove more than a big stick and a veteran starting pitcher even if Rogers comes back.
As for the post season, in my opinion, the best team I saw the Tigers play all year was the California Angels. They have a great combination of speed, hitting and pitching and they looked more like a National League style team, whenever the Tigers played them . I really think the Angels will take the American League Championship and I have a feeling Lou Piniella will work his magic with the 2007 Cubs, as he did with the 1990 Cincinnati Reds and lead them into the World Series. It's my belief that the Angels will prevail in a 6 game Series, to bring home the bacon to Los Angeles for the second time in 6 years. I just wish the ol' singing cowboy, Gene Autry, could have lived to have seen his Angels win a title. He meant so much to the game over the years. The Cubs will give the Angels a battle in the series, but California has to much veteran experience when it comes to the playoffs.
As for real estate, an agent asked me in the office today, how many homes were for sale in Troy right now. Well, a check on the multiple listing service on my trusty computer, revealed 607. Before the Michigan recession began a couple of years ago, that figure in late September/early October would have been in the 350 homes range. Another agent asked, well if there are currently 607 Troy homes on the market, how many Troy homes have sold this year. Another check turned up the figure of 515 home sales in Troy since January 1, 2007. At the rate of 607 sales a year, that's enough real estate inventory to last thru next July! By the way, a third agent told me that 68 of the homes for sale in Troy are foreclosures, clearly 11% plus of the 607 homes available. Don't believe we're in a statewide recession? Well, those real estate figures speak the truth more than anything else speaks about our current Michigan economy!!
As for the post season, in my opinion, the best team I saw the Tigers play all year was the California Angels. They have a great combination of speed, hitting and pitching and they looked more like a National League style team, whenever the Tigers played them . I really think the Angels will take the American League Championship and I have a feeling Lou Piniella will work his magic with the 2007 Cubs, as he did with the 1990 Cincinnati Reds and lead them into the World Series. It's my belief that the Angels will prevail in a 6 game Series, to bring home the bacon to Los Angeles for the second time in 6 years. I just wish the ol' singing cowboy, Gene Autry, could have lived to have seen his Angels win a title. He meant so much to the game over the years. The Cubs will give the Angels a battle in the series, but California has to much veteran experience when it comes to the playoffs.
As for real estate, an agent asked me in the office today, how many homes were for sale in Troy right now. Well, a check on the multiple listing service on my trusty computer, revealed 607. Before the Michigan recession began a couple of years ago, that figure in late September/early October would have been in the 350 homes range. Another agent asked, well if there are currently 607 Troy homes on the market, how many Troy homes have sold this year. Another check turned up the figure of 515 home sales in Troy since January 1, 2007. At the rate of 607 sales a year, that's enough real estate inventory to last thru next July! By the way, a third agent told me that 68 of the homes for sale in Troy are foreclosures, clearly 11% plus of the 607 homes available. Don't believe we're in a statewide recession? Well, those real estate figures speak the truth more than anything else speaks about our current Michigan economy!!
Friday, September 28, 2007
The Real Estate Downturn Continues
Sorry I haven't blogged for 3 weeks, but I've been out of town on vacation! No high speed internet, just dialup available where I was in good ole' "Hooterville," where they say, "the internet, what's that?!"
While away I did manage to read the Detroit papers daily via that slower than slow dialup and I noted that area home prices are down 18% from their levels of 3 years ago. WOW! That means a home that sold for 200,000 in 2004, today would sell for 164,000! Now if you paid 200,000 for that home in 2004 and put a nice 10% down and borrowed the rest, well, you see where I'm headed. You borrowed 180,000 on a 30 year fixed and probably today owe 173,000 or so on that mortgage. Meanwhile Mister real estate man (or woman) is telling you your home is only worth 164,000. This is what we call a "short sale," where the homeowner actually brings money to the closing table to pay off their mortgage, their real estate costs and taxes, just to get out of the house and move on. This is why not only in Detroit, but nationally, we're in the fix we're in economically. Plus here in Metro Detroit, we've been in a big economic turndown for the past 3 years anyway and the rest of the country is just starting to catchup with us.
If you're not in a "short sale" situation, good for you! If you're thinking about trading in that old home for a newer, bigger model, remember, your home may be worth 18% less than it was 3 years ago, but, that new home you're planning on buying is worth 18% less as well! So it all comes out in the wash. If you're waiting for the price of your current home to rebound to 2004 levels, good luck. It will take YEARS for the current market to recover back to those 2004 price levels, so if your planning on selling and getting something bigger and better, remember what I just pointed out. That new bigger and better home will be at a nice bargain price as well!!
While away I did manage to read the Detroit papers daily via that slower than slow dialup and I noted that area home prices are down 18% from their levels of 3 years ago. WOW! That means a home that sold for 200,000 in 2004, today would sell for 164,000! Now if you paid 200,000 for that home in 2004 and put a nice 10% down and borrowed the rest, well, you see where I'm headed. You borrowed 180,000 on a 30 year fixed and probably today owe 173,000 or so on that mortgage. Meanwhile Mister real estate man (or woman) is telling you your home is only worth 164,000. This is what we call a "short sale," where the homeowner actually brings money to the closing table to pay off their mortgage, their real estate costs and taxes, just to get out of the house and move on. This is why not only in Detroit, but nationally, we're in the fix we're in economically. Plus here in Metro Detroit, we've been in a big economic turndown for the past 3 years anyway and the rest of the country is just starting to catchup with us.
If you're not in a "short sale" situation, good for you! If you're thinking about trading in that old home for a newer, bigger model, remember, your home may be worth 18% less than it was 3 years ago, but, that new home you're planning on buying is worth 18% less as well! So it all comes out in the wash. If you're waiting for the price of your current home to rebound to 2004 levels, good luck. It will take YEARS for the current market to recover back to those 2004 price levels, so if your planning on selling and getting something bigger and better, remember what I just pointed out. That new bigger and better home will be at a nice bargain price as well!!
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