Southeastern Michigan Market Update

August followed the same trend as July and for the most part the past six months. We have seen a rising rate of sales in terms of the number of homes sold, a declining inventory of available homes, and a continued decline in home values. No new news there, except the news that the trend continues, which is a very good sign (except for the home value part, but that will begin to correct itself when inventories fall to 6-8 months). Add to that a more stable mortgage market with the bail out of Freddie and Fannie (and even a rate decline!) and you have all the ingredients for an acceleration in our recovery. Not anything earth shattering for us in Michigan, since job growth overshadows any other housing influencers, but still good news for all.

What does this good news mean for Buyers and Sellers?

For Sellers  Price is still king and will be until our inventories fall from 12-18 months to 6-8 months. As we begin to move off bottom and see more good news trends one of our bigger challenges will be keeping Sellers expectations reasonable. It will be very easy for a Seller prematurely feel the good signs mean their home will sell for more. There is still a lot of market absorption left before that can happen. Although the number of homes sold should continue to rise for the balance of this year and next as well, home values will continue to fall so don't wait to sell, be aggressive, and price ahead of the market.  The final option for Sellers would be to take your home off the market and wait until 2010 or beyond, when prices begin to rebound to better fit your target value needs.

For Buyers, The next three to four months will be a perfect storm of even lower interest rates and low prices. Rates should go up next year, negating any gain by waiting for lower values. If a buyer hesitates, waiting for a better price next year, they should consider moving forward with what they think will be next year's offer today. You would be amazed at what can be created in this market. Finally, it can never be said enough, when you are selling and buying in the same market, you can't loose. Your gain on the buy should always beat or at least equal the gain (or loss) on the Sale.

The Pearson Group, of Clarkston Michigan 
The above summary is presented by Michigan's Largest Real Estate Broker

 This lakefront is beautiful on the inside. Take our tours and view the interior shots. Our seller has priced this very well considering there has been more than $100,000 in upgrades and improvements made since purchasing this home just a few years ago. Note the marble and hardwood flooring, soaring ceilings, extraordinary views and decking leading to the waters edge.

The home is located in Waterford, yet features Clarkston Schools. Great location for commuting and this home certainly meets the standard expected by lakefront enthusiasts.  Take time to view on-line tours and we'll look forward to meeting you at your private showing soon. 

The Pearson Group is long overdue to update those interested in what is happening to the Real Estate Market in North Oakland County, particularly in the Clarkston and Waterford Township area.  Although we are posting the Market Absorption Study for both Clarkston and Waterford, we urge those interested in the the real estate market in North Oakland County, Michigan we invite to visit "The Pearson Group Website" and view the Monthly Absorption Rates for various townships. 

View Clarkston Absortion Rate Graph                      View Waterford Absorption Rate Graph

The FHA 203(k) Streamline Renovation Loan Program is a mortgage to consider whether you are buying a "Bank Owned" or any home that needs work. Repairs can range from minor improvements such as new appliances, paint, and carpet, to an addition, updated mechanicals, new kitchen or bath.

The purchase of a house needing repair is often a "catch 22" situation because most lenders will  not lend money to buy a home until needed repairs are completed. However, the repairs typically cannot be completed until the home is purchased, so what do you do?  Rose Balhorn, of John Adams Mortgage, can help! HUD's FHA 203(k) Streamline Program is the answer.

Rose Balhorn is one of very few local mortgage representatives approved to offer this, much needed, renovation loan program.

For prequalification contact:

Rose Balhorn
Branch Manager
John Adams Mortgage
31 S. Main Street, Clarkston, Michigan 48346
248-625-7065
rbalhorn@johnadamsmortgage.com

Real Estate Communities we review on a monthly basis are:
Brandon, Clarkston, Waterford, Lake Orion, Oxford, Grand Blanc, and Holly.
Absorption Rate Reports can be viewed at "The Pearson Group Website"

Absorption Rate is a method we use to determine the supply and demand for housing.

We determine the number of listings on the market within particular price brackets.  We then view how many houses have sold or pended in the past three months and calculate the average per month.  The number of active listings is then divided by the average sales per month to identify how many months inventory is available.

Sellers Market - Less than 6 Months Inventory
Buyers Market - More than 6 Months Inventory
Balanced Market - 6 Months Inventory

All information included in the following graph is generated from Realcomp Inc, an area Multiple Listing Service serving Southeastern Michigan. Note that no private sales would be included in this report. All information is deemed accurate but not guaranteed.

Real Estate Communities we review on a monthly basis are:
Brandon, Clarkston, Waterford, Lake Orion, Oxford, Grand Blanc, and Holly.
Absorption Rate Graphs can be viewed at "The Pearson Group Website"

Absorption Rate is a method we use to determine the supply and demand for housing.

We determine the number of listings on the market within particular price brackets.  We then view how many houses have sold or pended in the past three months and calculate the average per month.  The number of active listings is then divided by the average sales per month to identify how many months inventory is available.

Sellers Market - Less than 6 Months Inventory
Buyers Market - More than 6 Months Inventory
Balanced Market - 6 Months Inventory

All information included in the following graph is generated from Realcomp Inc, an area Multiple Listing Service serving Southeastern Michigan. Note that no private sales would be included in this report. All information is deemed accurate but not guaranteed.

Real Estate Communities we review on a monthly basis are:
Brandon, Clarkston, Waterford, Lake Orion, Oxford, Grand Blanc, and Holly.
Other community reports can be viewed at "The Pearson Group Website"

Absorption Rate is a method we use to determine the supply and demand for housing.

We determine the number of listings on the market within particular price brackets.  We then view how many houses have sold or pended in the past three months and calculate the average per month.  The number of active listings is then divided by the average sales per month to identify how many months inventory is available.

Sellers Market - Less than 6 Months Inventory
Buyers Market - More than 6 Months Inventory
Balanced Market - 6 Months Inventory

All information included in the following graph is generated from Realcomp Inc, an area Multiple Listing Service serving Southeastern Michigan. Note that no private sales would be included in this report. All information is deemed accurate but not guaranteed.

Real Estate Communities we review on a monthly basis are:
Brandon, Clarkston, Waterford, Lake Orion, Oxford, Grand Blanc, and Holly.
Community Reports can be viewed at "The Pearson Group Website"

Absorption Rate is a method we use to determine the supply and demand for housing.

We determine the number of listings on the market within particular price brackets.  We then view how many houses have sold or pended in the past three months and calculate the average per month.  The number of active listings is then divided by the average sales per month to identify how many months inventory is available.

Sellers Market - Less than 6 Months Inventory
Buyers Market - More than 6 Months Inventory
Balanced Market - 6 Months Inventory

All information included in the following graph is generated from Realcomp Inc, an area Multiple Listing Service serving Southeastern Michigan. Note that no private sales would be included in this report. All information is deemed accurate but not guaranteed.

Real Estate Communities we review on a monthly basis are:
Brandon, Clarkston, Waterford, Lake Orion, Oxford, Grand Blanc, and Holly.
Various Community Reports can be viewed at "The Pearson Group Website"

Absorption Rate is a method we use to determine the supply and demand for housing.

We determine the number of listings on the market within particular price brackets.  We then view how many houses have sold or pended in the past three months and calculate the average per month.  The number of active listings is then divided by the average sales per month to identify how many months inventory is available.

Sellers Market - Less than 6 Months Inventory
Buyers Market - More than 6 Months Inventory
Balanced Market - 6 Months Inventory

All information included in the following graph is generated from Realcomp Inc, an area Multiple Listing Service serving Southeastern Michigan. Note that no private sales would be included in this report. All information is deemed accurate but not guaranteed.

Real Estate Communities we review on a monthly basis are:
Brandon, Clarkston, Waterford, Lake Orion, Oxford, Grand Blanc, and Holly.
The various reports can be viewed at "The Pearson Group Website"

Absorption Rate is a method we use to determine the supply and demand for housing.

We determine the number of listings on the market within particular price brackets.  We then view how many houses have sold or pended in the past three months and calculate the average per month.  The number of active listings is then divided by the average sales per month to identify how many months inventory is available.

Sellers Market - Less than 6 Months Inventory
Buyers Market - More than 6 Months Inventory
Balanced Market - 6 Months Inventory

All information included in the following graph is generated from Realcomp Inc, an area Multiple Listing Service serving Southeastern Michigan. Note that no private sales would be included in this report. All information is deemed accurate but not guaranteed.