Michigan Monthly Real Estate Market Update – April 2013

Michigan Monthly Real Estate Market Update – April 2013 For the first quarter of 2013, Michigan is still a leader in the housing recovery but a number of states have caught up, extending the housing recovery across the nation. Throughout the state we are seeing inventory shortages and rising values. Southeast Michigan remains the most active with the lowest inventory and strongest buyer demand. A new term is being used in the industry: the Shadow Demand. Like the Shadow Inventory which represented the potential bank-owned homes that could go on the market, the Shadow Demand represents the pent-up Buyers who have been holding back for the past 5 years. While the release of the shadow bank inventory has been slow and steady, the Shadow Demand seems to be jumping in all at once. We expect a shortage of homes for sale throughout 2013 and 2014 with inventories rising and demand slowing down a bit in 2015 as interest rates increase and the Shadow Demand is dissipated. How quickly home inventories will raise depends on two factors: the pace of appreciation, and more importantly, how quickly Sellers realize that home values are improving. For many Sellers, values have risen enough that it makes sense to sell now, particularly if you are also buying. For anyone who has purchased a home in the past four years, particularly investors, it is a great time to test the market. You should be pleasantly surprised on the potential return on your investment. The same holds for those who leased their homes, waiting for the values to rise. Historically, with low For Sale inventories, home builders fill the gap. So far, local home builders, which traditionally make up the majority of new construction, have had difficulty obtaining financing so they have not been able to supply any inventory relief. Following the market trends over the past three years, you can see values have been moving off the bottom since the spring of 2011 and gaining speed these last three quarters. Charts: Average Cost per Square Feet The next two charts show both the decline in the number of new home listings entering the market as well as the increase in the number of homes being placed under contract. It is interesting to note the declining bank-owned share of the market. Charts: Home Listings Entering the Market & Home Listings Placed Under Contract The result is a big increase in Sales Absorption, which is the percent of the available homes being sold each quarter. Considering that about a third of homes for sale are not really saleable because of condition, motivation or price, a 44% rate this past quarter represents a true absorption of closer to 70%, which is the driving force behind the double digit appreciation rates. Chart: Sales Absorption It is important to note in this improving market that a decline in the number of sales reflects the shortage of inventory, not a market slowdown. The best in their field, even professional athletes take advantage of coaching. If you would like the benefit of working with a full time coach, absolutely free to you, please call me directly or email to set up an interview. (313) 516-6644 suzanneo@realestateone.com

Recent Real Estate News & Trends

Recent Real Estate News & Trends January Home Prices Rise 0.3 Percent The latest FNC Residential Price Index® (RPI) indicates that U.S. property values continued to recover through January—the 11th consecutive month of rising prices. Despite the uneven pace... more >> Eye on the Economy: Low Inventories Driving Permit Growth While recent economic reports suggest that home building took a pause at the beginning of 2013, leading indicators point to more growth for housing in the months ahead.Per data from the Census... more >> Setting up a Home Office that Fuels Productivity One of the biggest mistakes businesspeople make is assuming that working from home will automatically result in a higher level of productivity. Unless you carefully construct your home office... more >> 5 Hot California-Born Food Trends for 2013 Grab your fork and knife. Amateur and professional foodies alike highly anticipate the newest food trends, and 2013 will not disappoint. Throughout the country, restaurants and home cooks are... more >> Movie: First Impressions Make the Sale Movie Title: First Impressions Make the SaleDescription: These helpful hints for curb appeal will help make that great first impression! ... The best in their field, even professional athletes take advantage of coaching. If you would like the benefit of working with a full time coach, absolutely free to you, please call me directly or email to set up an interview. (313) 516-6644 suzanneo@realestateone.com

Southeast Michigan Real Estate Annual Market Trend Report - 2012-2013

Southeast Michigan Real Estate Annual Market Trend Report - 2012-2013 Whether you are thinking of moving or just curious about what is happening in your local real estate market, this report has it all. It is your opportunity to have an inside view of local housing trends, forecasting, and market statistics compiled by the largest real estate company in Michigan. As you review this report, there are a few things that we would like you to remember about our company. We are a family owned company, in our third generation of leadership, headquartered in the heart of Southeast Michigan. When you invest in our services, our people, you support Michigan workers. In addition to home selling, we offer one-stop shopping through John Adams Mortgage, Capital Title, Insurance One and Relocation America - all Michigan based companies. And most importantly, we get results, by selling more homes in our state than any other real estate company. Please feel free to send this information along to your friends, neighbors, and anyone who would appreciate having local market information. And if you need help with anything housing related, you may call or email at anytime. Annual MarkThe best in their field, even professional athletes take advantage of coaching. If you would like the benefit of working with a full time coach, absolutely free to you, please call me directly or email to set up an interview. (313) 516-6644 suzanneo@realestateone.comet Trend Report 2012-2013

Michigan Real Estate Market Update February 2013

Michigan Real Estate Market Update February 2013 January started at full speed. The activity level matched the spring markets of 2010 and 2011. The result, of course, is an even tighter listing market, since homes are selling faster than new ones are coming on the market. Good things happen with values when demand exceeds supply. Throw in a record low supply, add a touch of Buyers with record buying power and we can expect to see big value jumps. Certainly any one who has purchased a home in the last four years, particularly investors, should consider testing the market. Multiple offers are not guaranteed for every Seller and values have not yet returned to 2005 peak levels, but there is enough demand in all price ranges that Sellers can be confident there is little likelihood a property can be underpriced. If it is, it will quickly be bid up to market value. There is, however, still the danger of overpricing. If you look where the activity is concentrated, 40% of properties have been on the market over 90 days. Most all of these properties are overpriced and attracting only 15% of interested buyers. This chart shows how the key supply and demand factors are influencing values. The purple line is value per square foot, which shows an accelerating growth rate. This is a direct result of both the accelerating decline in inventory (blue line) and accelerating increase in home sales (red line). Also adding fuel to the fire is a deceleration in new homes coming on the market (green line). It is interesting to see how far we have moved in the market. The following charts trace the 4th quarter activity at key dates in our market transition. 2004 was that last strong real estate year and one of the peak value years. 2008 was the peak in terms of homes for sale, causing values to start to decline. 2011 was the bottom in terms of home values. Last year showed the value rise off the bottom When comparing December 2004 with December 2012, you can see we are at an inventory low point. The number of sales is exceeding what was a strong year in 2004 when comparing 4th quarter activity in each year shown. In 2004, both our economy and real estate were peaking. In 2013, we are moving up off a strong growth year, so we can expect good things for real estate. It is not surprising our January numbers were very strong as well, even compared to a strong January last year. When a market changes direction, the statistics can occasionally give off confusing signals. The decline in buyer activity and showing appointments is a result of the large reduction in available homes for sale, rather than a decline in buyer demand. If there are not many houses to view, we have fewer showings, open house and web property visitors. Based on the buyer activity when a new home is listed, there is no doubt buyer interest is growing. The best in their field, even professional athletes take advantage of coaching. If you would like the benefit of working with a full time coach, absolutely free to you, please call me directly or email to set up an interview. (313) 516-6644 suzanneo@realestateone.com

Real Estate One Achievements December 2012

Real Estate One Achievements December 2012

The best in their field, even professional athletes take advantage of coaching. If you would like the benefit of working with a full time coach, absolutely free to you, please call me directly or email to set up an interview. (313) 516-6644 suzanneo@realestateone.com

November Local Real Estate Market Update

November Local Real Estate Market Update Traditionally, this time of year sales activity slows and we can all catch our breath, but not so much this season. Although sales will be less than peak spring and summer months, they are unusually strong for this time of year. Our annualized sales rate is actually higher now than it was this past spring, meaning we are carrying even stronger buyer demand into the new year than we did this year (and this year was pretty strong). Listing inventories continue to shrink, as the number of new salable listings entering the market is not keeping up with the number of homes being sold. All indications point to 2013 being a strong year for home values with both Median and Per Square Foot prices up 20%+ over the past year, pending sales up 38%, home inventories down 25%, Days on Market down 24% and foreclosure sales down over 50%. The combination of great rates, prices and six years of pent up demand is causing an extra boost in buyer demand. Because of that, we expect appreciation rates to be strongest over the next 18-24 months, and then settle back down to a more normal (but still strong) activity level. Which means an expiration date is on that sweet spot of both strong appreciation and low interest rates, so anyone who is anticipating selling in the next 3-5 years should be evaluating their housing needs in 2013. Buyer's lending standards continue to be a challenge, so here are some simple suggestions to help minimize mortgage loan frustration: 1. It’s never too early to get pre approved. Preparation is key to a successful transaction. 2. Once pre approved, don’t open new debt. 3. Large deposits are watched very closely. Deposits going in checking and savings accounts need to be accounted for (large means anything over $500). 4. Bring everything asked for by the Loan Officer up front at the time of application 5. As underwriters check and double check files, be prepared for additional conditions after approvals and some details needed within the last few days of the transaction. 6. Often, if the transaction has been in place longer than 45 days, ask which information will need to be updated before closing. We have had requests for an updated Rent vs. Own analysis, so here it is using current rental and mortgage rates. Even if values remain flat over the next seven years, which is highly unlikely, owning a home is still an outstanding investment.

November sales were our best of the year, adjusted for the season and not surprisingly so was our market share!

We have a great new market update video for you to use to get an overview of your local market area. It's only one-minute in length with great charts and a voiceover. Click this link to see how it works! Here's a free business plan creator to get you started!

If you don't remotely know how or where to begin with building or re-building your business, come work with us. We already have systems in place that do it all for you!

The best in their field, even professional athletes take advantage of coaching. If you would like the benefit of working with a full time coach, absolutely free to you, please call me directly or email to set up an interview.

Suzanne O'Brien
(313) 516-6644
suzanneo@realestateone.com

REO Achievements October 2012

REO Achievements October 2012

We have a great new market update video for you to use to get an overview of your local market area. It's only one-minute in length with great charts and a voiceover. Click this link to see how it works! Here's a free business plan creator to get you started!

If you don't remotely know how or where to begin with building or re-building your business, come work with us. We already have systems in place that do it all for you!

The best in their field, even professional athletes take advantage of coaching. If you would like the benefit of working with a full time coach, absolutely free to you, please call me directly or email to set up an interview.

Suzanne O'Brien
(313) 516-6644
suzanneo@realestateone.com