The Pearson Group Blog

Market Update from Southeastern Michigan

Sat, 13 Sep 2008 16:19:35 -0500

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

Lake Oakland Lakefront Home

Sat, 13 Sep 2008 13:34:40 -0500

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.

Clarkston and Waterford Market Update ~ Fall 2008

Sat, 13 Sep 2008 13:20:39 -0500

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

Want to buy a "Fixer Upper" and mortgage the cost to repair it?

Sat, 29 Mar 2008 08:28:22 -0500

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

Oxford Absorption Rate Graph for February 2008

Mon, 03 Mar 2008 09:22:20 -0600

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.

Lake Orion Absorption Rate Graph for February 2008

Mon, 03 Mar 2008 09:19:28 -0600

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.

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

Holly Absorption Rate Graph for February 2008

Mon, 03 Mar 2008 09:16:49 -0600

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.

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

Grand Blanc Absorption Rate Graph for February 2008

Mon, 03 Mar 2008 09:13:53 -0600

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.

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

Brandon Absorption Rate Graph for February 2008

Mon, 03 Mar 2008 09:09:49 -0600

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.

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

Waterford Absorption Rate for February 2008

Mon, 03 Mar 2008 09:06:15 -0600

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.

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

Clarkston Absorption Rate Graph for February 2008

Mon, 03 Mar 2008 08:59:57 -0600

Monthly Absorption Rate Graph for Clarkston

Real Estate Communities we review on a monthly basis are:
Brandon, Clarkston, Waterford, Lake Orion, Oxford, Grand Blanc, and Holly.
Various 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.

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

New Listing in Ortonville

Wed, 27 Feb 2008 15:37:13 -0600

Absorption Rate Graph for Waterford ~ January, 2008

Thu, 21 Feb 2008 09:20:18 -0600

Monthly Absorption Rate Graph for Waterford

Real Estate Communities we review on a monthly basis are:
Brandon, Clarkston, Waterford, Lake Orion, Oxford, Grand Blanc, and Holly.

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

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

Robin Cutler and Kay Pearson ~ Clarkston, Michigan Real Estate

Absorption Rate Graph for Oxford ~ January, 2008

Thu, 21 Feb 2008 09:16:31 -0600

Monthly Absorption Rate Graph for Oxford

Real Estate Communities we review on a monthly basis are:
Brandon, Clarkston, Waterford, Lake Orion, Oxford, Grand Blanc, and Holly.

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

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

Robin Cutler and Kay Pearson, Clarkston, Michigan Real Estate

Absorption Rate Graph for Lake Orion ~ January, 2008

Thu, 21 Feb 2008 09:12:20 -0600

Monthly Absorption Rate Graph for Lake Orion

Real Estate Communities we review on a monthly basis are:
Brandon, Clarkston, Waterford, Lake Orion, Oxford, Grand Blanc, and Holly.

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

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

Robin Cutler and Kay Pearson ~ Clarkston, Michigan Real Estate

Absorption Rate Graph for Holly ~ January 2008

Thu, 21 Feb 2008 09:07:27 -0600

Monthly Absorption Rate Graph for Holly

Real Estate Communities we review on a monthly basis are:
Brandon, Clarkston, Waterford, Lake Orion, Oxford, Grand Blanc, and Holly.

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

Robin Cutler and Kay Pearson ~ Clarkston, Michigan Real Estate

Absorption Rate Graph for Grand Blanc ~ January 2008

Thu, 21 Feb 2008 09:01:46 -0600

Monthly Absorption Rate Graph for Grand Blanc

Real Estate Communities we review on a monthly basis are:
Brandon, Clarkston, Waterford, Lake Orion, Oxford, Grand Blanc, and Holly.

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

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

Robin Cutler and Kay Pearson, Clarkston, Michigan Real Estate

Absorption Rate Graph for Brandon ~ January 2008

Thu, 21 Feb 2008 08:55:58 -0600

Monthly Absorption Rate Graph for Brandon

Real Estate Communities we review on a monthly basis are:
Brandon, Clarkston, Waterford, Lake Orion, Oxford, Grand Blanc, and Holly.

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

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

Robin Cutler and Kay Pearson ~ Clarkston, Michigan Real Estate

Saving your Home before Foreclosure Strikes

Sun, 17 Feb 2008 09:59:31 -0600

Oakland County Executive, L. Brooks Patterson, Michigan Attorney General, Mike Cox, and representatives from two leading lenders, along with Foreclosure Attorney, David Trott, discuss what homeowner's can do to avoid foreclosure.

Watch the Video

View our website at www.KayPearson.com for more information related to Short Sales and Foreclosures. You can also search for foreclosure listings available in all of Southeastern Michigan.

Robin and Kay have continued to seek education to better consult with sellers who are faced with choices and possible alternatives to avoid foreclosure and the credit blemishes caused by a foreclosure. Our objective to offer sellers the opportunity to make informed decisions.

Clarkston Absorption Rate Graph for January

Sun, 17 Feb 2008 09:29:55 -0600

Visit our website at www.KayPearson.com to view our monthly Absorption Rate Graphs. We provide supply and demand information for various areas surrounding North Oakland County. These graphs will be posted on our personal website every month so that you can better monitor our real estate market.

Supply and Demand is the basic principle that drives prices for any product. Because of the increased supply of houses currently on the market, we are experiencing the best buyer's market seen in the last 40 years.

Robin Cutler and Kay Pearson ~ Clarkston, Michigan Real Estate

Adopt a Soldier

Sun, 02 Dec 2007 13:47:36 -0600

A fellow member of North Oakland County Board of Realtors was passionate in sharing information about Operation Care Package Michigan, a small non-profit organization, located in Lapeer, to Adopt a Soldier for $8.95 per month, our U.S. soldiers can receive a care package of wonderful items. For more information visit the website at http://www.ocpmi.com/

October Sales Increase Reported in Southeastern Michigan

Fri, 23 Nov 2007 06:42:31 -0600

October pending sales in the overall metro area were a pleasant surprise, exceeding last October by 11.16%. The strongest market was the City of Detroit at a nearly 50% increase over October 2006. Offsetting that increase was an increase in Detroit listing inventory of 34%. More homes are being sold, but more are coming on the market as well. Here is the rest of the area by county:

October 07 vs. 06

Pending Sales Current Listing Change

Oakland                              +5.47%                               +4.4%
Macomb                                +10%                                  +4.0%
Wayne (Excl. Detroit)            +4.26%                               +8.0%
Livingston                             +0%                                    +5.3%Washtenaw                          +17%                                  +2.3%
Detroit                                  +45%                                  +34%
Overall Market                    +11.16%                              +9.0%

North Oakland County
As we approach the seasonal 'slow' real estate market we would like to update you and offer some options. October statistics on the number of sales for the North Oakland County area are up again for the 4^th straight month. Oakland County in its entirety is down but our market area is up. Not up much...but still up. Unfortunately, the prices are down again. The average sales price dropped from $206,193.00 in October of 2006 to $189,071.00 in 2007. The median sale price - half higher, half lower, dropped from $176,467.00 last October to $157,250.00 this October. We do expect prices to continue to decline for at least one more year so waiting to sell in a year or two is not really a good option. If your home is on the market and you're not getting showings, at least one a week, the market conditions are telling you that the price is too high. The sooner you sell the higher sale price you should realize. Based on the current statistics, the selling price of a home in the North Oakland County area has fallen an average 2% per month during 2007.

Waterford Meadows at ONLY $140,000

Thu, 25 Oct 2007 11:43:59 -0500

Drastically Reduced in Waterford ~ Now $195,000

Tue, 09 Oct 2007 15:13:50 -0500

6473 Lake Meadow Drive, Waterford

Located in Waterford Michigan and just reduced! The seller has priced this lower than any other home available in the neighborhood. The home has been meticulously maintained and offers many ammenities that are not typically included at this price. Click on the address next to the picture above and you can view a flyer that includes loads of details and photos for this home. Thanks for viewing and please contact Robin or Kay at 248-625-9300 if we can assist you in buying our selling in the Waterford/Clarkston area.

Detroit Metro Area Market Update

Thu, 27 Sep 2007 15:12:18 -0500

August sales showed some effects of the mortgage market upheaval, dropping about 10% off the pace we have seen for the past six months. The effects of the mortgage market will continue for the balance of the year as the markets stabilize. Our metro area will not be as affected by the reduction in mortgage money as other markets, but we will see some changes. With the average home value in excess of $400,000, California has been hit the hardest (much of that market was down 40% in August) with the drying up of Jumbo Loan money. For our market, Buyers for the lower priced markets will shrink, particularly in the city of Detroit. The city had shown some sales strength the last few years, fueled by the availability of easy mortgage money. The inevitable results of that excess has been the spike in foreclosures. As I indicated last month, the middle upper-end ($500,000 to $800,000) will remain softer as those jumbo loan buyers sit on the fence until interest rates stabilize. The upper end in excess of 1 million has been on the rise since spring of this year after falling in the fall of 06'. The comeback of the upper end has always been a good economic sign. Also, the Grosse Pointe market is showing signs of life, again they tend to be a leading indicator. Overall, we will appear to "bounce" off the market bottom over the next six to eight months as we work through the mortgage market stabilization and our local economy settles down. Predicting the true market bottom is difficult; we won't really know it until after a recovery is well on its way.

Also, year to date, the number of leases has risen from nearly 6% of total units to 12%, reaching close to 20% for the month of August. The percentage of leases, like the percentage of vacant homes, are indicators of the direction of the market. For vacant homes, the percentage is running in excess of 40%, with a stable market in the 20-25% range. When both percentages begin to fall, our market will be on the rise. It is interesting to note that our company average sale price is only off 3.5% so far this year (taking out leases). Home values are certainly off more than that (over 10% this year) but our small drop shows the relative strength of the over 1 million market and weakening of the under $200,000 market as the exotic mortgage products dried up. Again, keep in mind we have the mortgage products to keep your transactions together. We can't fix bad credit, but we can make sure those with mortgagable credit are not squeezed out of the market.

Our numbers for the month were once again the strongest in the state.

Sales Volume for August: $221 million dollars

Number of Homes Sold/Leased: 1,392

Number of Mortgages, Title and Home Insurance policies provided to our clients: 524

We had our listings shown more than 16,000 times

We had over 5,000 buyers visit our open houses last month

We had another record month of visitors to our web sites, over 110,000