Michigan: the cold, barren January tundra that cools the real estate market after gains in the 4th quarter of last year. Well, the city that most people associate Michigan is of course, Detroit. What was Detroit known for? Crime and homocide in the past. More recently, we have been the poster child for the foreclosure fallout. Well Detroit, someone outdid you. Las Vegas now leads the nation as the city with the most foreclosures. Not something we are envious of.

The market in Las Vegas had explosive growth in the height of the market in the lead up to the banking crash. Investors were highly speculative gobbling up land for new homes and flipping existing homes, driving values through the stratosphere. What goes up, must come down. It's my experience that the steeper the curve is on the way up, the steeper the fall. We have expereinced more gradual increases here in the Midwest and our decline was similar... slow and steady.

So, Las Vegas... what are you doing to right the ship? How are these REO's being handled? What new systems and techniques are NV agents seeing that are effective? I'd love to hear from local agents with their boots on the ground.

Steven Terry- Mark Hagan and Associates

Looking for a Northern Michigan Realtor?

In a market that has snow as a seasonal feature, you can almost predict when the Holiday Lull is about to happen. You turn on the news and the weatherman says Winter Storm Warning or Lake Effect Snow expected... moments later the fluffy, white stuff is cascading down to the ground, snow plows are slamming your signs with mounds of snow, and then the unthinkable happens: the phone stops ringing!

This year has been fairly similar. We made it strong through Firearm Deer Hunting Season (yes, this event slows us down and even makes agents non-existent for 2 weeks), Thanksgiving, and Black Friday. We now have over a foot of snow on the ground with no end in sight and yes, the calls have slowed down. The redeeming quality is that the number of agents in the office also is way down. I find that when I can bring myself into the office during the Holidays, I may not get the normal volume of calls, but the ones that I get seem to be serious buyers. I mean, what "tire kicker" is going to trudge through 16" of cold, wet snow to see a smelly, moldy bank-owned home if they're not actually interested in buying something soon?!

I write this a day after traveling through a blizzard some 30 miles each way to show a $12,900 single-wide at the end of a private, unplowed road. On the way out, my truck got stuck and the subject property was a disaster. The silver lining here is that the new buyer I picked up is ready to buy a nice home for his daughter and has a very large family in the area that will likely lead to some referral activity in the future. Was it worth it? ...yep.

The Holiday Lull is something we have invented as agents. It gives us an excuse to sit home, rather than going into the office (I say this as I am looking out the window at beautiful snow coming down in my back yard and I am waiting for new Nordic skis to arrive so I can put some more miles in today). The important point here is that the business is still there for those who want it. Set the alarm, get out of bed, maybe think about shaving, and get yourself into your office and on a phone... you will be surprized how many good contacts you can make. Who knows you may even be lucky enough to get a call about a $12,900 single-wide that you get the opportunity to show. I wish you luck! (today I will likely be playing in the snow, so you can have my share of the calls also)

Steven Terry- Mark Hagan and Associates

Nothern Michigan Properties Found Here!

Thanksgiving has passed and so has the biggest shopping day of the year. Black Friday 2009 seems to have been a hit, based on early feedback from retailers. Online payment processor, PayPal reported that about 25% more money was moved around on Thursday in preparation for Friday shopping, as compared to last year. Will the retail enthusiasm continue through Christmas? Only time will tell.

We have seen plenty of ads for great deals on everything from TVs to toothbrushes from retailers. I am curious to see what kind of deals are out there in your local housing markets. It's no secret that homes in some markets have hit nearly wholesale pricing. In my local market, my clients have been astounded as to what they can buy for their money and with tax credits and low interest rates, it seems to only sweeten the pot. What is the best Black Friday Deal you have in your market. Share the rock-bottom best value for a home that you have seen. It will be interesting to see the pricing in different markets nationwide.

Steven Terry- Mark Hagan and Associates

Michigan Homes for Cheap!

The bread and butter of america can be found in our counrty's MidWest. When you think of manufacturing and agriculture in the USA, you're talking about the states from Michigan, Illinois, and Indiana to places in Kansas, Iowa, and Nebraska. While the unemployment rate in these states is averaging nearly 10%, these hard-working people have stepped up to buy homes.

A few examples of what we have left of blue collar workers doing some business in the housing industry include growth in Des Moines, Iowa. Higher prices in Cleveland, Ohio. Even Detroit, Michigan is making some much needed progress. Here's the details from NAR on these improving markets.

Des Moines, Iowa. For this MidWestern town an increase of 39% in the number of sales from 1 year ago. The median price is down (as is true in most US markets) by 5%, but still come in at about $144,000. Local experts attribute a fair amount of this increase to the success of the New Homebuyer Tax Credit that now has been extended to next Spring. In a state that seems to only get the national spotlight every 4 years when we have an election caucus in it's backyard, it is great to see this increase!

Cleveland, Ohio. LeBron James is the biggest news to come out of Cleveland in recent years. With high unemployment numbers and even higher hopes for a revitalized downtown, Cleveland has been a tough market. Having said that, Cleveland leads the region in sales price increases. The median sales price saw a 15% jump year-over-year in the housing market. Signs that people may even be relocating to this midwestern city include more interest in higher-priced homes. With Lebron's contract coming up in 2010, maybe a revitalized housing market will keep him in his Cavalier home.

Detroit, Michigan. Well, they had a good thing going that Henry Ford started. Now we have seen that good thing built of steel and nuts & bolts and assembled by some of the world's finest workers for drivers all over the USA, pick up and leave town. We have just the rust left over from much of the prosperity enjoyed in the first half of this century. Toss in some nasty race riots that are still physically visible 40 years later in the form of burnt out buildings and a fair share of homicides and you have a market collapse. So what's new in "The D"... The Detroit market saw its median sale price rise 6 percent to $69,000, the first year-over-year increase in more than a year. Sales, meanwhile, increased 8 percent. Wow; $69,000 median home sale price and we are thrilled. Detroiters have learned to set the bar pretty low at this point, but progress is progress. On a side note, Detroit's cousin to the West, Chicago has the largest price decline in the region of 15%.

A call to action, yes. Take time to be with the family this Holiday Season. Come January 1st, go out and talk to a friend about the new home they just bought. Watch for the new excitement they have. If your an industry professional, call that nice couple that's been "on the fence" waiting out the market and get them excited about home ownership. Call that newly single person that wasn't sure if they could qualify for a $0 down loan. Talk with that vet that's back from the Middle East and ready to get into a home and settle down. Make it happen!

Steven Terry- Mark Hagan and Associates

Find Northern Michigan Homes Here

Traverse City, Michigan?! Most have not heard of the local market that I do my business in and live. We have began to get some media coverage as consistently being a top destination for those in the retirement mode. With low median housing costs and a great upside with regard to qulity of life, Northwest Michigan has been largely unaffected by the housing crisis that has plagued most of the rest of the state and the nation. Truth be told, we are seeing about a 25% home value correction from the boom of 2003-2006. Some of our rural areas have seen a correction of about 40% in value from the same market. These numbers still have to be much lower than states like California, Florida, and Nevada that have seen much largrer corrections in their markets.

On the other hand, most of Michigan is not as fortunate as we are in our resort town. Former boomtowns like Detroit, Lansing, Warren, Grand Rapids, Kalamazoo, and Flint have faced catastrophic levels of decrease when it comes to home values. Increased forclosure and unemployment rates have haulted many markets. For many in Michigan the past few years have been a "perfect storm" of negative economic data, bank failures, job loss, increasing energy costs, and insufficient healthcare coverage... not a pretty picture.

Now the good news about the rest of Michigan. According to folks at MSN.com and USNews.com, Lansing and Warren have made it on to their list of "10 Hard Hit Housing Markets Ready to Rebound". They say that Lansing, the State Capital, has faced a drop of 28% in value from peak through the 1Q of 2009. They are projecting that values will rise by 15% by 1Q 2014. Warren, MI is the 3rd largest city in the state behind Detroit and Grand Rapids. Prices in Warren have dipped 37% from their peak through Q1 2009. The projections for Warren are an increase of 21% through Q1 of 2014. Then there's Detroit... what to say there. You can buy a house for less than the price of a car in the Motor City. The upshot here is that prices cannot go below construction value and in a market that has lost 72% in value since 2000, Detroit has had an increase of 1.9% in last month according to S&P Home Price Composite Index. Houston, we have reached the bottom of the bottom and we're ready for liftoff!

Has the New Homebuyer Tax Credit helped this... Yes. Will extending the Tax Credit to 2010 continue to help... Yes. Is the DJI being above 10,000 helping... Yes. How are these factors affecting you local market that most of us has never heard of? What are you doing to stimulate business to take advantage of some good news? We'd love to hear about other local markets ready to rebound!

Steven Terry- Mark Hagan and Associates

Your Nothern Michigan Real Estate Experts

Short Sales... most professionals have mixed feelings at best.

In a period of 109 days we listed, got an approval on the short sale, and closed the deal. I have to say that some of the stories and info on ActiveRain regarding short sales has become the norm... long delays, no communication, frustration. Which at many times is the norm with any distressed sale. This recent transaction with Huntington went wonderfully though!

The seller came to us from a lead on ActiveRain. They had everything in order regarding their info, proper forms, and a contact at the bank. They were truly a joy to work with. The other agent in the transaction prepped the buyer well and the new home owner was very patient and easy to work with.

It looks as though we may have other short sale opportunites with Huntington in the near future and I look forward to more smoothe transactions.

Are there any other banks you've dealt with that have been swift, pleasant, and get the deal closed?

Steven Terry- Mark Hagan & Associates

Find help with Short Sales here!

Well, at 1:21pm yesterday, the Dow reached 10,000 for the first time since October 7th of last year. What a long year it has been for so many in our industry.

I remember the day back in 1999 on March 3rd when the market first reached that mark of 10,000. It was almost a new horizon for the folks in the financial business. Reaching the mark this time seems to signal that the confidence we are seeing in our local market is being seen nationally.

After taking a look at local lending institutions, I found that even with the gains being made on the Dow, interest rates were being held to under 6% average for 30-yr fixed rate mortgages according to a survey from FreddieMac. With these rates staying this low for several weeks, it has really spurred activity in my local market.

Since I am not a lender, I am curious what industry professionals have to say about the short-term future of interest rates, assuming the Dow maintains the 10,000 level throughout the 4th quarter of 2009.

Steven Terry- Mark Hagan and Associates

Foreclosures in Northern Michigan?

Hello...

What a changing climate we have to try to conduct business in. I have worked several short sales with banks such as Countrywide, Huntington, HSBC, and others. I have a client with a short sale with OneWest/IndyMac. The condo has been on the market for almost a year and is now listed at under $80k. The seller owes over $101k and we have had no activity on the property. We now have an offer also under $80k and have submitted the packet to OneWest. The sheriff's sale happened in March and we have a 6 month redemption period here in MI. I am not sure that OneWest/IMB knows this because they have made a back HOA fee payment already. The seller called the bank and was informed that the packet had not gone to review because the "sell" had already happened. The rep on the phone was not terribly helpful and said to call back next weeke and that she would request a review. Seems very strange that if a property was on the market under $80k with no activity that the bank would think that they would have a chance to collect their $100k+ on the market after going through the time and cost of the foreclosure. It seems as though these irrational decisions have become par for the course. Anyone have any experience or thoughts here?

Steven Terry- Mark Hagan and Associates

Hello...

We have made it past the Inauguration Day of the newest edition to the long list of citizens who have been elected to the position of President of the USA. No matter who you voted for in this election, most folks in our industry are carefully watching what we as a country are going to do differently to jumpstart our sluggish economy. On Inauguration Day, we saw the market dip about 300 points... not the effect anyone wanted to see. On Day 1 we saw the market gain what it lost and then some. Day 2, as I am writing, the market seems to be pretty steady. So, is there an Obama Bounce happening? Not sure...

One thing I know is that our local Northern Michigan market is doing quite well. I have continued to have buyers contacting me, looking at homes, and most importantly... writing offers! So, is this the Obama Bounce? I think its just the combination of several factors playing themselves out and Americans putting one foot in front of the other and getting back to basics to keep America strong. Whatever it is, whoever you voted for, keep the optimism up and make sure to share your successes, rather than your failures, with your clients and coworkers in your local market. Call it what you want, but I think really its the American Bounce!

Steven Terry- Mark Hagan & Associates

Homes in Northern Michigan

Hello...

Whew! We made it into 2009. This has been a very unique time to be in our real estate industry. We have weathered the "perfect storm" of foreclosures bringing the median home value down, mortgage companies and banks folding- making lending somewhat non-existant, along with some of the highest unemployment rates most states have seen. NAR also reports that "The Pending Home Sales Index in the Northeast dropped 7.2 percent to 63.2 in November and is 14.6 percent below a year ago. In the Midwest the index fell 6.7 percent to 74.2 and is 10.1 percent below November 2007. The index in the South declined 2.2 percent to 85.3 in November and is 12.7 percent below a year ago. In the West, the index was down 2.4 percent to 101.2 but remains 19.3 percent higher than November 2007." So that's the past...

The start of 2009 has continued to be strong in our office. We have seen an increase in calls and new buyers since August and it seems the Holiday Season has continued to build steam in my market. Over the 2 weeks of Holidays, my office received a flurry of phones calls from the internet, signs, and paper ads. These buyers are for real also! I have been generating offers daily and seeing agent showings on my listings greatly increase. So take all of this activity and include a great interest rate on fixed 30yr loans, sounds like a good match!

How has your 2009 started? I'd love to hear what some of the real world statistics are as we head into a new market. What activity has your region been bearing? What price ranges are strong? Where are the buyers coming from? I've heard what the media has to say about our industry, but what are those of us putting in the hours on the front lines saying?! That's the real news!

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