Even with the news of the Fannie Mae and Freddie Mac bailout, there is still strong activity and confidence in our local market as sales remain 11.7% higher than last year for the eighth straight month in 2008, according to RealComp, our local MLS. When comparing this year's results to the record-breaking sales of August 2005, sales are only down 1.1%.
Additionally, Pending sales this year are up in all counties, with a 45.1% increase in Wayne County and 25.9% in Oakland County over the same period in 2007. Compared to 2005, pending sales are actually up 19.8%!
It continues to be a great buyer's market and buyers are snapping up lower priced homes, often in multiple offer situations. To date in 2008, 17% of all sales ranged from $100,000 to $174,999. Additionally, owners who don't need to sell are keeping their homes off the market until values start to rise again, as the number of listings on the market is down 14%.
Buyers are the lifeblood of the market. First time homebuyers buy homes from move-up buyers and that momentum continues upward. That's why the tax credit was recently passed to give incentives to those first time buyers. With all the recent market upheaval, it will be interesting to see how things shake out. Let's hope it doesn't disrupt the market momentum we've experienced so far this year!
Bottom line...it remains a great market for buyers. If you know anyone who is still renting, you might want to encourage them to check into buying during this once-in-a-lifetime market.