Highland, Michigan real estate market hammered by double dip...

By
Real Estate Agent with Real Estate One
Real Estate in Highland, Michigan has been hammered by the recession and now appears to be going into a second swoon - a double dip.

Real Estate Market Chart by Altos Research www.altosresearch.com

Both Median sold home prices and the Inventory level are back on their way down, after a brief run-up in the 4th quarter of last year. The huge spike in new inventory can probably be attributed to the a burst of listings by sellers who have been like a little boy holding his breath and needing to take a deep breath. In this case the brief run-up in sold prices spurred and over-response by would be sellers to get in on that market - a market that turned out not to really be there.

So far this year, 41 homes priced above $20K (my arbitrary cut-off price) have sold. The average SEV multiplier so far in 2011 is 1.5079, which means that house that the assessor says is worth $200,000 would have actually sold for $150,790 or about 75% of the value that the tax man thinks it is worth. Obviously the local assessors are playing catch-up with the market. That house would have sold for an average of $72/Sq Ft, compared to all of last year at $74/Sq Ft. Of course last year homes sold for an average of only 1.3949 times their SEV, so I guess the assessors are getting closer to market value.

Foreclosures and short sales continue to make up a significant portion of overall sales, but they are running at under 50% for March, which is good and the first time that they've been below 50% in some time.
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 Norm Werner

Real Estate One

 

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