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5 years ago feels like a lifetime ago

Chatting with a friend yesterday about how much the real estate market has changed
in the last 5 years had me curious for clarifying data.

I took a peek this morning in Mirealsource™ to see the hard numbers during the month
of April in 2003 compared to what we are experiencing now in the housing market in April
of 2008. I chose Chesterfield Township in Macomb County as my target area and this
is what the 5 year snapshot looks like:

Chesterfield Township homes sold comparison

A couple of things startled me when I first saw the numbers as I entered them into the graph.

First, the number of homes sold was almost identical. Secondly, the average days on the market
were also very close. If you had asked me before I looked at the data if I would think those 2 items
would be so similar I would have said no.

The average list price and sold prices plummeting during these 5 years did not surprise me at all.
We've been watching this steady decline for some time now, longer than most areas of the country
have been experiencing this.

One scenario that brings this to the forefront of my mind is this one:

5 years ago if there were 10 homes on the market in Chesterfield Township under $150,000 that
was a generous supply for first time home buyers. They also would have sold within the first couple
of weeks on the market if they were in decent shape.

Today, there are 46 homes on the market in Chesterfield Township priced between $100,000 and
$150,000. 20 of these homes are bank owned properties. **Homes linked to for sale are courtesy
of Mirealsource™ and it's participating brokers and agents via Broker Reciprocity.**

The national and local media is filled with the news that now is a great time to purchase if you are
in need of a home. I echo that sentiment. If it is a good time to buy for you and your family, then
now would certainly be the time to purchase one of these homes in Macomb County.

To view other homes for sale in Macomb County please visit me at my Macomb County real estate
website and enter one of the search for homes features.

Kris Wales RE/MAX Advantage 1, Inc. Chesterfield Township - a Macomb County MI real estate agent.

Contact Kris Wales - A partner for your real estate needs in Macomb County MI

Search Macomb County MI homes for Sale with MLS provided data updated daily.

Want to chat about local real estate? Visit A Macomb County MI real estate blog

Posted by Kris Wales - Macomb County MI real estate blog & homes for sale search site on 04/26/2008 06:23 AM

Comments (11)

chesterfield township, macomb county, real estate, homes for sale

This post has been included in Michigan Information Macomb County, MI Information Chesterfield Township, MI Information

11 Comments on 5 years ago feels like a lifetime ago

APR

2008

Wow Kris, That looks like my personality profile chart - LOL - I have a friend who is a home inspector up that way and he says things are really slow. I feel for y'all up there. Hope things turn around soon.

Michael: The home inspectors in our area that are holding their heads above water are those that can do more than just a standard home inspection: Added de-winterization to their inspections, added well & septic inspections, etc.

Amazing how those prices dropped over that time. But, like you say, it is a good time to buy.

Kris--So what do you surmise from the homes sold and DOM being the same? I would venture that you have a rather stable area where there have been no major changes in employers so no matter what the market, the approximately the same number of people are buying AND if houses are priced right, they sell in a reasonable time. Unfortunately, there are probably more sellers out in most markets and not all homes are in optimal condition. Very interesting graph for your area.

Kris, I checked out your link, and there are some sweet looking houses on that list. What a great chance for people to get into the market with an affordable price tag!

Yea, that is true here too. Our price point is a higher, but homes at 200K sold in a few days with mulitiple offers, now we have 41 in Ann Arbor. But, we are seeing some activity, 77 under contract last week. Yea.

Gary:   It's rather shocking to see the price drop in a graph like that. When it was happening slowly over that time it didn't seem as drastic.

Teri: Chesterfield always feels "stable". It's an area with many amenities: Good school districts, lots of parks and rec areas, etc. It will always be a desirable place to live for many no matter what the job situation is in the state of Michigan. What I surmise is this: In the last year or so the bank owners have priced the home much more realistically. They are not starting out way over the top, so the homes are not sitting on the market for long periods of time. Private sellers are also realizing that like it or not, the bank owned homes are the competition and are pricing their homes to sell.

Patricia:   Thanks for checking out the link. There are some wonderful homes in that price range now, great deals for first time buyers in particular.

Missy:   Are you also seeing the same price drop in those 2003 200K homes? 77 under contract in one week is excellent!!!

Oh my gosh that graph is stark. Falling off a cliff. Our sales are down almost 50% but prices are UP 5-10%. That's downright challenging -- if near impossible -- to successfully sell in that mudslide.

Me thinks you're up to the challenge.

APR

2008

Andrew: Stark was one of the words that popped into my mind also when I saw it laid out like that. It's so difficult for home sellers right now. A challenge, yes, it certainly is. It's also very rewarding when things work out for the consumers. Thanks Andrew. (Glad to hear that even though sales are down in your area, that prices are actually UP!)

APR

2008

I don't know about MI source but real comp doesn't accurately portray time on the market for solds correctly because if it is relisted with another agent or relisted as "new" those days don't count.

MAY

2008

Russ: Mirealsource™ does show the cumulative days on the market. It's so helpful.

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