This is an excellent time to buy in Lake Orion, MI and Orion Township. The hugely large and fast appreciation of the 90's had to come to an end sometime. Prices have dropped over the past few years, but like the good times, this deflation in prices will be coming to an end, too. Since real estate is cyclical (feel a bit like the 80's except without the double digit interest rates?) the escalation of home prices will start to rise again. Making today's home purchase a great investment if you're willing to stay put until the good times come back.
Real estate is cyclic and right now we are on the down swing. In Orion Township, for example, the average sales price in 2007 was 6.7% lower than the average sales price in 2003. BUT, the average sales price in 2007 was still more than 6.3% more than in 2000. Below is a summary of sales trends from 2000 to date for Lake Orion and Orion Township, MI.
2000 - 475 sales - avg. sales price - $231,289
2001 - 444 sales - avg. sales price - $240,377
2002 - 434 sales - avg. sales price - $248,515
2003 - 508 sales - avg. sales price - $264,417
2004 - 493 sales - avg. sales price - $259,750
2005 - 361 sales - avg. sales price - $262,889 - median sales price - $249,000
2006 - 350 sales - avg. sales price - $251,952 - median sales price - $230,000
2007 - 304 sales - avg. sales price - $246,757 - median sales price - $222,750
In 2007 houses in Lake Orion/Orion Township sold within 5.4% of the final average asking price and within 3.1% of the final median asking price.
The median sales price for the first quarter of 2008 was $207,000- down 19.4% from the median sales price in the first quarter of 2007 of $256,727. The good news is that the unit sales for the first quarter of 2008 were up 12.5% from the amount of sales in the first quarter of both 2006 and 2007.
The amount of foreclosures on the market have been, and will continue to, drive the sale prices down until the excess inventory is gone. As of 4/6/2008 there are 375 active listings in the MLS with an average asking price of $305,134 and a median price of $259,900. That's 71 more houses than sold in 2007, with more coming on the market every day and another waive of foreclosures expected to hit soon.
What do all these numbers mean? If you can afford to stay in your current home- STAY. Unless you are considering upgrading. If you are in the market to buy a house- your timing couldn't be better. The prices may go lower, but there's no guarantee. There are terrific bargains on the market now. Interest rates are still good. And FHA has raised the limits on what you can borrow, allowing for 3% down and possible zero down financing up to approximately $300,000 (depending on where you buy).
The above figures come from Realcomp MLS and backing out leases