Real Estate Information Archive

There were no dramatic changes for the housing market in November and the first part of December. The median sale price increases in the last 90 days have been modest at under 2%, however the real value increase has been closer to 4%. The difference being that with a slowing upper price market, median values will tend to be lower than the true appreciation rate. The Month's Supply of Inventory (MSI) has been declining, with a small jump in November, a sign that although inventories are rising, demand is still strong. Sold properties have been rising through the fall season, but slowing in November compared to last year. Some of that decline might be weather-related and the fact there was one less business day in November this year. The slower sold pace does reinforce our feeling that the market is settling down to a more normal pace, especially in the over $500,000 segments. With buyers spread out among more listings, many sellers will feel that the market is slower than it really is. 

These charts from the National Association of Realtors focus on some of the underlying economic trends that should translate into a multi-year real estate recovery.

Household Net Worth at All-Time High 

Most people do not realize how far household net worth has risen from the bottom of the recession, and that it has exceeded the prior 2007 peak. The stock market jump has certainly helped move the numbers up, but the majority of the yellow bars are made up of Home equities. Higher household net worth translates into higher consumer confidence and increased consumer spending.

GDP Growth = Job Creations (8 million lost, 10 million gained)

Going hand-in-hand with increased household net worth is the increase in total jobs, again exceeding the peak year of 2007. The jobs added during this recovery are more service-based and do not have the same Buying power as those in the past, but with so many dual income families, the combined incomes create buying power for housing. Michigan as a whole may lag compared to the national averages in these two areas, but Washtenaw should actually exceed the national averages.

Young Adult Homeownership Rate (under 35 years old)

The young adult homeownership rate is one of the biggest challenges for housing growth. With tough lending standards, slow job growth and high student loan debt, young adults have a hard time getting financed. As lending standards move back to more reasonable levels, some of that first time home buyer pent-up demand will be released, moving that ownership percentage closer to 40%.

Homeowner households have not grown since 2006, but are primed to grow.

This chart clearly illustrates the effect of the housing bubble. After 20 years of growth in the number of homeowners in the U.S., we have been at a standstill for the last six years. Most economists expect the homeownership numbers to resume their growth, but probably at a slower pace than in the past. Much of that future growth is in former homeowners, who were forced to Rent, and hope to buy again the first chance they get.

National Housing Forecast

Overall, we are carrying an improved listing inventory, good economic momentum and some evidence that there is still some pent-up demand out there along with the prospects of continued affordable interest rates. The skies look good going into 2015 for stable and steady growth in the Washtenaw real estate market.

Please keep me in mind for any of your real estate needs. I am happy to assist you.

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Hello there,

You might want to listen to this audio by inspirational speaker Earl Nightingale called the Strangest Secret.  There have been many speakers with the same message over the years and centuries and I really do think it works, if you can train and focus your find on a daily basis.  I remember another very popular video and audio series about 10 years ago called "The Secret" that seemed to have a very powerful effect on many people.  Keep and open mind, it really does work if you focus on your goals and keep them in your mind and steadily work on a plan to reach them.  

Wishing you and your family all the best.  Keep us in mind if we can ever help with your real estate needs in the Ann Arbor, Saline or surrounding Michigan communities.  Always good to hear from you, perhaps comment on this video and whether you have tried something similar in the past?  

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For the Newest Realty Listings - Click on the "All MLS Listings" Link above 

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Woman in Kayak is Surprised by Something Popping up out of the Water! 

Have a Great Day everyone.  Please keep in touch.  

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The decision to sell a house is filled with important things to know about. One of those items is the importance of seller disclosures. The state and federal laws regarding those disclosures are strict. A buyer cannot see what is behind the walls of a house that they are interested in, so it is necessary that the sellers are honest about the condition of the Home. Follow these tips to help make the disclosure process as easy as possible:

• One of the first things that a real estate agent will do when selling your home is to give you a Real Estate Disclosure Statement. This statement asks you to disclose items like lead, asbestos, radon and other toxic substances.
• While the form asks you to disclose issues like lead or radon, it does not require you to test for those substances. It is important to remember that the buyer's lender always has the right to request proof of testing.
• You are required to fill out the forms yourself. Your real estate professional cannot fill out the forms for you, but they can provide assistance with helping you understand what each item is asking for.
• It is always best to fill out the form as completely as possible. Putting too much information is always better than not putting enough information. It is also important to remember that while the form has an "I don't know" box, it is best not to check that box unless you really have no idea. Having a home inspection is sometimes the best way to feel confident about filling out the form.
• Be sure to keep all work orders and reports to share with potential buyers.

If you've never considered the importance of seller disclosures before, consider how you would feel if a seller didn't inform you about major issues with a home that you were Buying. This is one place in the real estate market where trust is crucial.

April sales took a nice jump, gaining back some of the delayed sales from January through March. Although spring sales are moving up, the combination of fewer homes to purchase and reduced Buying power will keep sales from making up all of the decline we saw in the first quarter (compared to last year). We still see 2014 as a strong real estate year across all markets and price ranges, however about 5-7% down from last year in terms of total homes sold.

One of the biggest logs in the dam holding back a flood of new listings is the seller’s “Move Up Spiral.” With many homes selling quickly, sellers are afraid to put their Home on the market until they find a home to buy to avoid an intermediate move. Imagine if all sellers held back for that reason, there would be very few, if any, homes to purchase. On the other hand, if all of those sellers let us know of their intent to sell (even if they did not specifically put their home on the market), our matchmaking skills would take over, creating additional sales and breaking up the log jam. We do see this now, with about 10% or more of our sales “creative,” meaning transactions where the properties were not specifically on the market.

We have successfully used sales contracts with extended closing and occupancy dates to give sellers more time to look for a home and many sellers are arranging for an interim move. Although not convenient, it does give sellers certainty. Our most successful strategy has been simply reaching out to homeowners in targeted areas via mail, social media or even door to door with messages about the new home needs of our sellers (aka hesitant buyers) to find that other reluctant seller whose home fits our clients’ needs. 

One area to watch is some creeping overconfidence on the part of some sellers as a result of media and our own discussion of double-digit appreciation and bidding over asking price. Values are rising quickly and 68% of all home listings are selling in 90 days or less. However, homes are still selling on average at 96% of list price, so buyers are aggressive, but within a relatively narrow value range. Buyer activity is always the best gauge of whether a home is at the right price point. Under the current market conditions if the property is priced correctly, showing activity should be immediate and there should be at least one offer in the first 30 days (markets over $500,000 will have a slower activity pace).

Our monthly charts break down the markets by under and over $100,000 segments. If we move upstream a bit in price the differences in markets become even stronger. Here is a snapshot of the market change from April of 2013 using a $200,000 price point. Both are moving in the same general direction but at different paces: the inventory levels under $200,000 show dramatic declines, while the over $200,000 is more modest. A buyer looking in either segment will experience some inventory frustration.

I am happy to announce that my brokerage ranked #8 in the nation in number of transactions for 2013 as well as #1 in Michigan. 

Thank you very much for your business and support!

When you have your Home on the market and you're looking for a buyer, every little detail counts. You need to be aware of the biggest turn-offs for homebuyers so that you don't have to worry that a small detail you've overlooked is scaring off buyers who might otherwise be ready to make a decent offer on your property. A few simple touchups on your home will make a big difference if you've unknowingly left one of the following turn-offs visible to those who come to view your home.

• Outdated décor features– When was the last time you put some thought into the interior décor of your rooms? Potentials buyers might be making note of the dated look of your home. Even subconsciously, buyers might be put off from making an offer on your home because you need to have your appliances, furniture, or décor modernized.
• Cluttered interiors– If you've always preferred a comfortable sloppiness in your home, you might want to reconsider while your home is on the market. A cluttered interior can detract from the appeal of your home in a variety of ways. It could make your home look less spacious and less clean. Take a look around. If you can't see a lot of open floor or table space, you might want to put some thought into clearing away the clutter and letting your beautiful property shine through.
• An unrealistic asking price– Of course, everyone who is trying to sell a home wants to get a good offer that will make their original home purchase a good investment. However, it's important to realize that you might come across as overly demanding if your asking price is something that no one is possibly going to be willing to offer you on your property. If your home has been on the market a while without any offers, try lowering your asking price and see what happens.
• Overdue maintenance– When you're showing your home, you might assume that simply explaining that a bit of imminent maintenance is needed will be considered an inconsequential detail by would-be buyers. However, they might actually read a lot into the fact that you've been putting off maintenance and become suspicious that the property has not been well maintained throughout your residency.

Once you've remedied the biggest turn-offs for homebuyers mentioned above, you might be presently surprised to receive a long-awaited offer.

There is some good news for individuals who are currently trying to sell their Home. According to recent statistics, home sales are now the strongest they've been in the last seven years. While the national real estate market has clearly gone through some tough times since the 2008 recession began, there is some pent-up demand for home sales that is fueling a slow but steady recovery. Record low interest rates and a slight rise in resales this past December show that those who are currently trying to sell a property have a considerable chance at finding a buyer in the coming months. 

Home sales in 2013 show that home sales of existing homes have been the strongest in 7 years, which is bringing some optimism to the real estate industry as a sign that the market is gaining health. Home resales rose through December, as was expected according to a poll of economists given by Reuters earlier in 2013. Although resales had gone down due to increases in the interest rates of mortgages, there has been some new development activity among builders that shows that the demand for properties is out there despite multi-decade lows in household formation.

The obstacles that the housing market still faces include rising prices in combination with the fact that incomes do not seem to be growing proportionally across the country. Despite the fact that home sales were the strongest in 2013 that they have been in seven years, the median price for an existing home has risen alarming– by almost 10 percent– between December of 2012 and December of 2013. 

The rise in home prices can be attributed to the fact that there is a shortage of available homes on the market. Due to market uncertainty, many homeowners who would otherwise put their homes up for sale are reluctant to attempt to find a buyer. The number of unsold properties on the market has fallen significantly over the last few months, and scarcity in available prices is contributing to rises in home values.

However, the pick-up in the market that was shown in 2013 will hopefully continue and encourage would-be sellers to put their homes up for sale. Ideally, this will lead to a stabilization of home prices across the country. 

The city of Ann Arbor recently announced its decision to sell a parking lot downtown to a local property manager. As part of that agreement, Dennis Dahlmann has agreed to turn this parking lot into a mixed-use development no later than January 1, 2018, which means that more apartments are coming to downtown Ann Arbor very soon.

The deal is estimated to be worth around $5.25 million. The sale of the former YMCA property was approved unanimously by the city council in November. In making the decision, once council member was excited at the possibility of creating something “magnificent” on the site, and remarked that it would be an excellent development for the downtown area.

This parking lot is located near the Blake Transit Center, and is also situated along William Street and Fourth and Fifth Avenues. It consists of just under an acre of land that will house a structure that is at least five stories high when completed. The lower level will contain retail and restaurant space, office space on middle floors and apartments on the top floors.

Ann Arbor’s city council had previously set forth a number of stipulations for building on the site. One of the requirements was that the site plan had to be based upon available standards for energy efficiency. Proper parking facilities were also outlined, to include connecting with another underground parking garage that is nearby.

In addition, the city also made exact specifications as to the amount of open space that’s provided. The amount of open space must be at least 10% of the property. The city also mandated that the developer include a fountain that is approximately the same size as the one located in front of the Campus Inn.

City officials received five different offers, and considered all of them carefully before deciding to sell this lot to Dahlmann. In deciding which offer to take, council members looked at the benefits of each proposal separately in addition to considering the asking price.

Residents can expect ground breaking for this new construction to begin soon. Government officials are hopeful that the idea of more apartments coming to downtown Ann Arbor will help spur economic growth within the city.

The fact that days are shorter and colder in winter often means that selling a Home during this time of year is especially challenging. That doesn’t mean it has to be impossible, as there are some tips for winter home selling people can do in order to increase their odds of securing an offer.

Keeping driveways and walkways clear ensures that real estate agents and potential buyers are able to get to a property. If they can’t get to a particular home, they will bypass it and head to another one instead. Those who cannot clear snow and ice themselves should consider hiring a professional service to help them with this.

Outdoor lighting should be bright enough to illuminate a home’s best features, while also making it safe to enter. Adding new lighting or replacing burned out bulbs can ensure the property’s best features are highlighted, and which guests feel comfortable coming and going.

The inside temperature of a home should feel nice and toasty. When people enter, they don’t want to feel cold, as this will make them wonder whether or not the heating system works efficiently. If a home is vacant, installing a programmable thermostat that is operable by smart phone will allow homeowners to turn the temperature up just before visitors arrive.

Just as in the summertime, everything inside the home needs to be clean, tidy and well-staged. Plastic mats near the doorway will contain snow and mud, thereby helping carpets to stay clean. The angle of the sun during winter also makes streaks and grime more noticeable, which is why washing windows inside and out is highly recommended.

Doing some little things to make a home seem warm and inviting will go a long way toward enticing buyers. Simple things, such as flameless candles burning on an end table or warm cider simmering on the stove, can make a house feel more welcoming. Homeowners may not want to burn a wood fire in their fireplaces if they are not home, but simply staging some fire logs in front of the fireplace could still lend a cozy feeling to the home.

Many market reports show that sellers have fewer homes to compete with during the winter. This means that those who follow these tips for winter home selling are likely to make a sale despite there being inclement weather.

Many prospective Home buyers, at one time or another, fall victim to the "kid-in-a-candy-store" mentality when they find the home of their dreams is available but happens to be priced just a little outside their price range. If you find yourself in this situation, there are some things to contemplate.

Sometimes financial stretches for buyers make sense. This is especially true when you consider that each additional thousand dollars on the overall Home Price equates to a mere $100 - $200 extra on the monthly mortgage payment.  Not only that, but Buying a nicer, larger home will often save you time and money in upgrades in the following years. This means that you can spend your years living in your home instead of working on it.

For a vast majority of people, the purchase of a new home is a long-term financial investment. So if you plan to be in the home for many years to come, then stretching financially may be a great buying strategy for you. 

However, everyone's financial situation is different and sometimes financial stretches for buyers are not a good idea.  For instance, if you are not planning on being in the home for more than 5 years, then you could lose a lot of money in the up and down cycles of the housing market. Also, if you do not have much job security for one reason or another, then you may not want to stretch to a more expensive home.

Financial stretches for buyers can be a calculated risk that pays off well over time. But if you’re a buyer with financial uncertainty, then you’re probably better off not pushing yourself to your financial limit. Talking with an experienced real estate agent is your best step for working out a buying strategy that works well for you.