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

You've Got Mail

Did you receive a surprise in your mailbox recently saying your value has decreased, but your taxes have gone up? If you have, you're not alone. Countless numbers of residents in the Detroit Metro area are scratching their heads wondering what's up.

With all the news about declining property values in the area, how could this happen?

Prop A passed in 1994 limiting tax increases to the rate of inflation based on the taxable value (homeowners who used their property as their primary residence). It wasn't a problem when property values were continuing to rise, but starting in 2005 when values stalled to today when they are declining, it's a big problem for many homeowners.

For folks like us, who bought in 2004, both our SEV and Taxable Value declined $11,650 which should hopefully result in a decrease in taxes. But for homeowners who have owned their property since 1994, there is a big gap between the SEV (State Equalized Value--the 'value' the municipality perceives the value to be) and the Taxable Value (the amount your taxes are based on because it is your primary residence).

Papers like the HomeTown News and Detroit News have been warning about it since the first of the year. But now that assessment notices have been received, property owners are flooding tax review boards requesting reductions.

This morning's Detroit Free Press contained an excellent article including definititions, resources, and describes how to read your assessment notice.

For more information about the tax appeal process, check out WWJ.com.