February 2009 Southeast Michigan Market Report

Hard to believe, but we're nearly done with the first quarter of 2009 and the Spring selling season is upon us.

The good news is home sales in 2009 continue to outpace 2008 levels. February sales in Wayne County were up 18.4%, Oakland 12.3%, Livingston 27.9% with an overall increase across the MLS of 16.5%.

Another good piece of news is that the inventory of homes and condos is way down. Last Summer I had "Search over 70,000 homes..." on my website. Today when I checked the MLS, there were less than 50,000!

Average days on the market has also fallen. However, the market remains a challenging one for sellers, which helps explain why there are fewer homes on the market. A fascinating chart by Standard & Poor's graphically shows home prices nationally have dropped 26.7%. Many values in the Metro area are at pre-2000 levels.

Hopefully with increased demand and decreased inventory, our market will start stabilizing and begin recovery. Much of that depends on our local jobs picture, and hopefully Michigan's portion of the federal stimulus will provide a boost.

The upside is that with the recent cut, interest rates are at their lowest point in more than 35 years! However the mortgage process is a bit challenging right now with all the political scrutiny of banks. I recently had a situation where the lender went out of business 3 days before our closing date!

The $8,000 credit for first time buyers has helped stimulate a strong buyer's market. Bottomline, with historically low interest rates, there may never be a better time to buy or invest.

2614 Brookfield St, Canton MI 48188 | Just Listed For Sale

AWESOME LOCATION IN BACK OF SUB WITH WOODED VIEW! Updated Colonial With Oak Cabinets, Family Room With Gas Fireplace, Ceiling Fans, Newer Tear-off Roof, Vinyl Windows & Pergo Flooring * 13' x 11' 3-Season Room To Enjoy Overlooking Fenced Backyard With Shed Backing to Beautiful Protected Woodlands * Community Park in Sub For Recreational Activities.

Property information ~~ $174,000
1,421sf, 3 Bedroom, 1.1 Bath Colonial

MI Real Estate Answers: HUD home or Fannie Mae?

Q. If you had a choice between buying a home owned by Fannie Mae or HUD, which one would you choose, all things being equal?

A. What is most important is finding a home you're crazy about in an area you like that is mechanical sound. That said, however, the advantage of HUD is that they are offering a $2,500 owner occupant incentive which is applied toward your either your closing costs, tax prorations & repairs to the home. If all other things are equal, that's pretty nice incentive.

When you couple that with the $8,000 tax credit given to first time buyers through the end of December, 2009 is a great time to jump into the housing market!

MI Real Estate Answers: Westland City Inspections

Q. I'm interested in a Westland MI home that's a short sale. Who pays for real estate city inspections and how do I know if one has been done?

A. Unless specifically negotiated in the purchase agreement, it's the seller's responsibility to schedule and pay for the inspection, which is $180 for a single family residence. A City inspector reviews the major mechanical systems, health & safety items, and any issues that violate the Property Maintenance Codes.

Call the City of Westland Building Department at (734) 467-3210 (Google any "City State Building Department") to see if the inspection has been completed. If it has, you can go into their office and review the report. If it hasn't, I'd have your agent call the listing agent to find out when they plan to do it.

Since it's a short sale, if there are any issues that need to be addressed from the inspection, the seller may not have the funds to address the issues. Because the inspection period can take 3-4 weeks, it's important that it be done ASAP so that the bank is aware of any issues that need to be addressed to sell the property.

32564 Benson Ct | Westland MI 48185 Just Listed For Sale

Great Location on Low Traffic Cul-De-Sac with Livonia Schools

Bay Window & Spacious Cathedral Ceiling in Living Room & Bedroom * Newer Furnace, Central Air, Roof & Some Newer Windows * Great Breezeway Adjoining 2.5 Car Garage & Patio Overlooking Backyard Surounded by Privacy Fence * Closing & Commission Subject To 3rd Party Approval

Property information ~ $125,000
1,710sf, 4 bedroom, 1.1 bath tri-level

Southeast Michigan December 2009 Market Report

Residential sales ended 2008 up 19% higher than 2007 with December's strong finish. In fact, according to Realcomp, every county in the entire MLS showed increased sales and pending sales, which bodes well for 2009.

Sales for the entire MLS during December 2008 were up 31.6% over December 2007, reflecting the 12th straight month of growth.

Strong 2008 starter home sales (those priced under $125K) were up 61% over 2007 due in large part to affordable home prices and low interest rates.

Even though December's inventory was down over 18% over December 2007, the supply of homes remains greater than the demand. Therefore homes selling in this buyer's market are priced to sell.

Market activity has started strong this year. It's still a wonderful time for first time homeowners to take advantage of low interest rates and values.

January is National Radon Prevention Month

The Environmental Protection Agency (EPA) designates January as "National Radon Prevention Month".Radon is an odorless, colorless gas that is naturally occurring in the earth's crust and sometimes seeps into homes through openings in foundations or walls. It is the leading cause of lung cancer among non-smokers, and the second leading cause among smokers.

In August I wrote a blog post on the importance of testing for Radon because of a recent experience with a crazy high radon reading in one of my listing.

According to a proclamation signed by Governor Granholm last year, one in eight homes in Michigan (EPA's map of Michigan radon zones) have elevated levels of radon. Homes with 4 picoCuries per liter (pCi/L) or higher should be remediated. Consider purchasing a radon detection kit if it wasn't part of the home inspection process when you bought your home.

For more information about radon, check out these sources:

Reducing Radon Risks, Michigan Department of Environmental Quality
A Citizen's Guide to Radon: The Guide to Protecting Yourself and Your Family from Radon,
U.S. Environmental Protection Agency
EPA Video Radon Discussion

A Grain of Salt

This morning I answered a question on a popular real estate site about how a Livonia MI home could sell so cheaply ($90K) in an area of expensive homes without being listed for sale.

Turns out the home in question was in a new subdivision of about 70 homes so it was purchased through the builder. Upon further investigation, I discovered that after the transaction closed, only the sale of the parcel of land was recorded as the real estate 'sale' on public records. Also recorded was mortgage for over $300K. That doesn't account for how much the Buyer might have paid as a down payment.

It's become so easy to do home value research online through sites like Zillow and Trulia. However, until each municipality standardizes how new construction transactions are to be recorded, data will continue to be skewed and deceptive.

Your best resource for local home values is still a local professional real estate agent who can fill in the full picture for you.

17438 Farmcrest Ln | Northville MI 48168 Just Listed For Sale

A NORTHVILLE BEAUTY…Updated And Shows Like A Model! Hardwood Floors, Berber Carpeting, New Colors, Absolutely Perfect New Kitchen With All The Amenities * Door Wall Leads To Brand New Decking * Updated Baths & Large Library For Home Office * Professionally Finished Lower Level Adds 1000sf With Wet Bar * Newer Dimensional Roof, Recreational Area, And Sprinkler System

Property information ~ $359,900
2,626sf, 4 bedroom, 2.1 bath Colonial

Taking The Leap & Leaving The Nest

There has never been a better time to buy your first home than right now. Given the current economy, you probably think I'm crazy, but hear me out.

First of all, interest rates are still really great and there are rumbles about them getting better. Second is the first time homebuyer tax credit passed this year. And third, the mortgage is likely to be cheaper than paying rent.

Case in point, my daughter.

After she graduated from college in May, we started running some numbers in preparation for her leaving the nest. She was looking at between $600-750 per month for a small apartment. Based on what I was seeing on the market, I suggested we investigate foreclosed & HUD homes.

Long story short...we found a really great 3 bedroom, 2 bath brick ranch with finished basement, fenced yard and 2 car garage for $50K. Her payment? Under $600 a month!

Are there still great deals out there? Absolutely...and some of them are not even HUD or bank-owned. Some sellers just need to move now.

If you're been thinking about taking the leap, be sure to work with a buyer's agent who can look out for your best interests and research potential problems. And if you check out HUD homes, make sure make sure you're working with an agent whose brokerage is approved by HUD to submit electronic bids.

3979 Berkley Ave | Canton MI Condo Just Listed For Sale or Lease

Popular Chatterton Village!

Light, Bright & Neutral Two Bedroom Newer Built Condo With High Ceilings and Great Room With Dining Area * Breakfast Bar Plus All Upgraded Appliances Stay * Tons Of Storage With Balcony Overlooking Lush Landscaping * Pool, Club House, Gorgeously Maintained Grounds And Landscaping * Also Available For Lease at $1,100/mo

Property information ~ $124,900
1,300sqft, 2 bedroom, 1 bath condo

6781 Emily Ct | Westland MI 48185 Just Listed For Sale

Absolutely Perfect And Everything Is New!

New Roof, Windows, All New Kitchen With Cherry Cabinets, Recessed Lighting, Stone Ceramic Floor And Back Splash Plus All New Appliances * Kitchen Opens Into Family Room But Can Be A Great Gathering Kitchen * All New Baths & More * Located On A Small Cul-De-Sac Dead End Street * Stop Looking and See This Home Today!

Property information ~ $123,900
1,073 sqft, 3 Bedroom, 1.1 bath Ranch

29445 Orangelawn St | Livonia, MI 48150 Just Listed For Sale

The Seller's Job Has Moved Out Of State and She Hates To Leave This Great 2 Bedroom Condo With Basement!

Cute Updated Oak Kitchen With Hardwood Flooring, Newer Appliances, Newer Carpeting, Windows, Air Conditioning & Furnace * Two Spacious Bedrooms With Updated Bathroom * Basement With Newer Washer & Dryer * Like Living In A House With The Convenience Of A Condo Plus Short Walk To Shopping, Restaurants & Parks * Offers Are Subject To Short Sale/Bank Approval

Property information ~ $59,900
2 bedroom, 1 bath condo with basement

September Market Report

As if the Michigan economy didn't have enough challenges, the past month of national and world financial chaos certainly hasn't helped.

Even with all those challenges, the Southeast Michigan counties of Wayne, Oakland, Livingston, and Macomb all experienced higher sales volumes than last year for the month of September. Depending on the zip code, the number of September sales in Plymouth increased 48.5%, Livonia between 30-54%, Northville 15-175%, Westland 22-100%, and Canton 27-29%. However, sale prices are continuing to decline.

The good news is that between the higher number of sales and Sellers choosing to wait out the market and not putting their homes up for sale, the inventory of homes on the market was down 16.43%.

It remains a great market for buyers, especially those with good credit, first time homebuyers, or those who don't need to sell anything to buy. There are some smokin' deals out there, particularly if you want to put in a little sweat equity. Additionally, lots of investors are jumping into the market hoping to take advantage of the low prices to position themselves well for the market's turn.

With the financial bailout, auto merge rumors, job insecurity, and presidential politics, we're still in for some rough months ahead. Best to batten down the hatches, cut where you can, and hang on for the ride.

Summary of Economic Stabilization Act by the National Association of Realtors
Tax Credit to Aid First Time Homebuyers by the Internal Revenue Service

37168 Vincent St | Westland MI 48186 Just Listed For Sale

This Home Shouts "Pride of Ownership" With Lovely Updated Oak Eat-In Kitchen With Tons of Cabinets With Large Pantry, Corner Carousel and Pull-outs, Updated Roof, Furnace, Air Conditioner, Baths and Vinyl Windows and Siding * Large Family Room With Fireplace, Newer 2 Car Garage With Opener Plus Nice Fully Fenced Backyard With Deck * Check It Out Today...You Won't Be Disappointed!

Property information ~ $139,900
1,479sf, 3 bedroom, 2 bath Tri-Level

30553 Grandon | Livonia, MI 48150 Just Listed For Sale

ABSOLUTELY MINT MOVE IN HOME! From The Perfect Lush Landscaping Outside To The Meticulous Interior And Updated Amenities Inside This Home Is A "10" * 2 Fireplaces, 2 Full Baths, Hardwood Floors, A 4 Season Sun Room, Finished Lower Level With Bar and New Berber Carpeting Plus A Newer Kitchen To Die For…This Home Has It All! A Must See!

Property information ~ $192,900
1,211sf, 3 bedroom, 2 bath Ranch

425 Harbor Street | Canton MI 48188 Just Listed For Sale

Central Park Subdivision ~ ABSOLUTELY THE PERFECT AND LARGEST LOT IN THE SUB Boasts An In-Ground Swimming Pool & Patio Area To Die For! Home Shows Beautifully With Hardwood Floors, Second Floor Laundry Room, Formal Living & Dining Rooms, Family Room With Fireplace, 3 Car Garage And More * Tennis Courts & Club House In Sub * A Great Family Neighborhood And Plymouth/Canton Schools * CHECK IT OUT!

Property information ~ $369,900
2,624sf, 4 bedroom, 2.1 bath Colonial

31660 Mackenzie Westland MI 48185 Just Listed For Sale

Boulevard Gardens ~ All Brick Maintenance Free Ranch Presents The WOW Factor And Commands A 10! Rich Hardwood Floors, Updated Granite Kitchen With Pantry, Living Room With Fireplace, And 1/2 Bath On Main Level. Newer Roof, Windows, Driveway, Hot Water Heater, 560sf Finished Recreation Area In Lower Level With 14´ x 9´ In-Home Office Or Play Room. All This Plus An Enchanted Backyard With Lush Landscaping, Pond, Brickscaping…HURRY!!

Property information ~ $162,900
1,172sf., 3 bedroom, 1.1 bath Ranch

44453 Savery Drive Canton MI Open Sunday

Hidden Glen Condos ~ We invite everyone to visit our open house in Canton at 44453 Savery Drive this Sunday, August 17th from 1:00 PM to 4:00 PM.

Come check out this mint 2 bedroom condo backing to a park-like setting. With an updated Kitchen and newer mechanicals, all you have to do is move in, relax & enjoy!

Property information ~ $94,900
South of Ford, West off Sheldon onto Savery

33268 Alvin St Garden City MI 48135 Just Listed For Sale

THE "WOW" FACTOR REIGNS In This Updated To The Max 3 Bedroom All Brick Ranch * From The Rich Hardwood Floors To The Stone Ceramic New Kitchen And Baths, Newer Windows, New Roof, Furnace and Electrical * All Mechanics Are Complete * 14´ x 9´ 3-Season Sun Room, 15´ x 10´ In-Home Office Or Play Room * Mint, Move-In And A Must See!!!

Property information ~ $129,900
972 sqft, 3 bedroom, 2 bath Ranch