For homes in the Howell zip code 48843 (basically the Howell area south of M-59), there are some interesting contrasts between 2007 and 2008.
The total number of homes sold are pretty close, 370 in 2007 (through 12/31/07) vs. 378 in 2008 (through 12/4/2008). The fact that the total number of sales has remained pretty constant is a good sign by itself. With lenders getting tougher on loan requirements, required down payments and more underwriting scrutiny it shows that there are still buyers out there looking for homes - and they're able to buy!
If we look at just the foreclosed (also known as bank-owned or REO) homes, the picture is more grim. In 2007, there were 47 bank-owned home sales of the 370 total, or about 13%. For 2008, we've seen 115 bank-owned home sales out of the 378 total, or 30%. That's more than double last year's rate and this year's data is not complete at this point.
The median price dropped from $209,750 to $170,000 (a 19% reduction) for those same time periods. That's a huge drop in value, undoubtedly influenced by the higher number of foreclosures. But there's also the fact that owner-occupied homes are dropping in price, too, as the entire housing market loses value.
The time to sell a home went down- from 145 days in 2007 to 134 in 2008 So, homes that sold did so about 8% faster in 2008 - a small bright spot, anyway.
If you absolutely have to sell, expect to take a hit from what your home was worth 2 years ago. At least 20%-25% is not uncommon, and it may be even more.
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