A brief Market Summary from Southeastern Michigan
Locally sales rose about 8% over last July, which was expected, and anything less would have been a concern since last year sales fell off once the tax credits expired. Buyer inquires, written contracts and in some cases home values have shown a steady rise for the past four months (on an seasonally adjusted basis). Not quite a trend you can take to the bank, but all good news. You will not see these same positive numbers for Michigan for a few months since the national indexes such as Case-Shiller use date that is anywhere from 4 months to 2 years old (example; a short sale written in 2009, based on 2009 values that finally closes in June of 2011 will show up on Case-Shiller as a 2011 sale with a 2009 price). The national data will begin to show what we see everyday late this year.
One of the biggest challenges in a market that is changing direction is managing the mixed signals of the Seller's need to still be aggressive in pricing and Buyer's need to be aggressive in their asking price for the multiple bid properties. Time on Market is a great way to look at how each should approach their asking/offer price.
Inventory of Listings remain low. The next 60 days are a crucial window of time for any seller who needs to make a move in 2011. Sellers should be certain that their home is in the best Marketable Condition possible. One of the most important marketability factors is to be certain the competitive price is on the property.
The rental market of residential homes remains in high demand due to the volume of people who are not able to obtain financing. There are usually several people interested in the same property which takes away the ability to negotiate the rent prices. High Demand and Low Supply will continue to maintain a great return for investment property owners.
On the other hand, those individuals who are credit worthy who rent should now consider the advantages and savings that can be recognized in home ownership.
Buyers interested in comparing rent vs. own scenarios can contact "The Pearson Group" for more information.
Kay Pearson and Robin Cutler
31 S. Main Street
31 S. Main Street
Clarkston, MI 48346
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