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Friday, May 28, 2010

April 2010 Real Estate Market Report

The combined effects of tax credits, Homestead deadlines, great interest rates and throw in a dash of great prices caused a feeding frenzy in April. The net effect has been to move our Months Supply of For Sale Inventory (MSI) down to the lowest levels in the past six years (under 5 months) pushing the overall market to neutral. This is a temporary effect from the tax credits, we can expect the market to move back to a Buyer's market as the year progresses, but still remain very close to neutral for the balance of the year.

It is nearly impossible to predict what effect this will have on the balance of the year. There are a number of positive signs (buyers tired of waiting, low rates and prices, low inventories, improving economy) but an equal number of negative (foreclosure bulge, increasing rates, no more federal subsidies). Which will dominate or will they work to cancel each other out is anybodies guess. Government intervention has had a significant impact on the improved market numbers. As we move into the second half of the year with fewer artificial supports you will see the sales pace slow and corresponding home inventories rise. To give you a feel of just how active the market has been year to date, it matched the activity and inventory levels of our peak year of 2005 (with prices off 45%+)!

Our for sale inventories are under 30,000 properties for Southeast Michigan compared to over 60,000 in 2008. With inventories at that level, we are in a good position to weather any slowing during the balance of 2010.

For Sellers, price will still be king, since although the decline in home values has slowed considerably, most homes currently for sale are priced significantly higher than the market. By way of example, homes sold without requiring price reductions sold on average at 95% of asking price vs. 88% for all others and sold in 63 days vs. 96 days for all others. Buyers have become very good at finding the best opportunities and are even willing to set a bidding war for them.

Thursday, May 27, 2010

The Biggest Mistake Real Estate Agents Make and How to Avoid It

The Biggest Mistake Real Estate Agents Make And How You Can Avoid It
By Dr. Maya Bailey

RISMEDIA, May 24, 2010-- THE BIG MISTAKE: “The economy is so slow and I don't even know where my next sale is coming from.” How often have you heard someone say that when business is down and the economy is questionable? It seems logical, doesn't it, to tighten your purse strings?

“Wait! Are you suggesting that I should invest in my business now?”

Even though it seems logical to tighten up and constrict spending, this is actually based on a “scarcity” mindset. In a scarcity mindset you focus on lack in your business, and on lack in economy.

The result is a constriction in the flow of energy to your business. In fact, when you focus your thoughts on lack in your business, you have a problem even before you begin. Hence, THE BIG MISTAKE.

Are you constricting the flow of energy to your business? Here are some signs to watch out for:

1. What are your thoughts?

· I don't have enough clients

· My competitors are stealing business

· I can't succeed in today's market

Here's an example that contains a scarcity mindset:

“There are so many new people getting into my business that there isn't enough business to go around. Maybe I should just get a real job.”

Have you ever had that thought?

2. What emotions do you experience?

· Fear

· Stress

· Struggle

· Anxiety

· Worry

Any of the thoughts above are likely to create the emotions of worry, fear and doubt. You find yourself dwelling in these negative feelings that will prevent you from attracting to your business and the very things you desire, such as more clients and more income.

Your thoughts create your reality. Therefore, if you focus on what you don't want, like the lack of money, you'll get more of that.

3. Actions

When you're stuck in a scarcity mindset, not only does it affect your thoughts and feelings, but also your actions. For example, “I was going to take the weekend off, but now I better not. Business is slow and I don't want to miss a call from a prospective client.”

Do you see how this is a scarcity mindset? What is the person missing out on? If you said “self-care and self maintenance”, then you are right. This is one of the actions that goes by the wayside when you're focusing on scarcity. You're simply afraid that you won't have enough so you ignore the importance of taking care of yourself.

So what is the big mistake?

The big mistake is that you are focusing your thoughts on outward circumstances, like the economy, to determine your mindset. If the economy is down you are down. Stephen Covey calls this the “reactive” mindset. You believe that you are acted upon, rather than being “proactive” and there is a constriction of energy to your business.

When you are proactive, you don't focus on what the economy or the market is doing, you are coming from an internal state of prosperity consciousness. You don't look to outer conditions to determine your state of mind, you determine your own state of mind by your thoughts, emotions and actions. In essence you create the mindset of being the deliberate creator of your life.

The solution:

If the mindset is the problem, then how do you switch to a more positive mindset?

1. Commit to building a “prosperity” mindset

A “prosperity” mindset is not something you are born with, it's not in your genes; it’s something that you develop through practice. Think of it as a muscle that you exercise. The more you exercise it, the stronger that muscle becomes.

Successful people have one thing in common – they believe in their own success and their ability to attract money into their life. They look for opportunities and find them... everywhere. Why? Because they had an internal prosperity consciousness and they focused on that, instead of looking at external conditions.

2. Adopt the beliefs of success

It's easy to adopt a successful mindset - it's just a shift in focus from scarcity to prosperity. The way you make that shift is to have a set of beliefs that are congruent and prosperous thinking. For example, Walt Disney once said, “All of our dreams come true if we have the courage to pursue them.”

Here are the beliefs of successful people:

· Change is to be embraced because it represents more opportunity for growth and expansion.

· Determine what you want, and assume you'll get it. Don't worry about the ‘how’.

· There is an answer and solution to every challenge.

· Discomfort is part of charting the unknown.

· Obstacles will not stop me from attaining what I want.

· Money needs to flow in order to grow.

You'll notice that if you practice the beliefs above, you will experience positive emotions that expand the flow of energy to your business.

3. Be clear on what you want

How can the universe give you what you want unless you are clear about what you want? A challenge for you here is to break the “want” barrier. Accept the fact that it is not only appropriate and proper, but critical, for you to want anything, of any kind, to any degree.

The main thing is to be clear about what you want for your business. I hear too many people saying, “I want to be successful” without even knowing what success means to them. I suggest visualizing your ideal professional life in 12 months from today. See yourself doing work you love and noticing approximately how many hours a week you're working. Ask yourself what kind of people you want to be interacting with. Who are your ideal clients? Are they motivated, decisive and respectful of you and your service to them? What is your income in 12 months from today? How much are you making per year or per month?

4. Clear away any opposing beliefs

When you think about your ideal professional life, what beliefs do have that are opposing your vision? Here are some beliefs that I hear on a continual basis when people are honest with me about discussing their blocks to success:

· “I like doing my work, I'm just not good at marketing.” (Remember, it's only a belief)

· “I'm really not smart enough or energetic enough to achieve what I want.” (Remember, it's only a belief)

· “The real estate market is so tough right now that I can't possibly make the income I was hoping for.” (Remember, it's only a belief)

5. Take inspired action not frantic action

What kind of action are you taking? Are you taking action because you're afraid? If you are, your action may be frantic action rather than inspired action.

What is inspired action? Inspired action comes from your intuition and listening to your gut instincts. You follow your heart, you follow your hunches; you don't wait for someone to hand you a formula because there is none.

You will know if you’re taking inspired action by the way you feel by the results you are getting. You’ll be feeling relaxed and confident and the results that you will be getting will be one or more of the following:

· Increased client√®le

· Increased income

· Increased passion for your work

As a review, remember to avoid THE BIG MISTAKE by being conscious of what you focus on.

Don’t let the outer conditions determine your mindset. Keep a mindset of prosperity and practice the beliefs of successful people. Keep remembering to expand the flow of energy to your business, whatever the market is doing.

When times seem tough, it is especially important to stay away from a scarcity mindset. Instead, go within and look for the opportunities for new ways to market yourself from a prosperity mindset.

Dr. Maya Bailey, author of, Law of Attraction for Success Minded Professionals, integrates 20 years of experience as a psychologist and 12 years as a business coach with her expertise in the Law of
Attraction. Her powerful work creates a success formula for success minded professionals ready to double and triple their incomes. Get Dr. Maya's free report, 7 Simple Strategies For More Clients in 90 Days by visiting: www.90daystomoreclients.com

Tuesday, May 4, 2010

March 2010 Real Estate Market Update & 1st Quarter Analysis




Dan Elsea
2010 1ST Quarter Market Update
From Dan Elsea, President - Brokerage Services
Real Estate One Family of Companies
March Market Update

Business has heated up in the past 45 days. The market activity certainly reflects the tax credit activity (up 40-50% from last year - but the first quarter of last year was really slow, so the comparison is relative). We had initially projected a modest level of activity since we felt about 75% of those who were going to take advantage did last year, but it appears we were light on that number and further, the move up credit, although still modest in comparison, does also seem to be stronger that we had anticipated. It looks like we may have had another 40% or so left to roll into this year.

A view of the Months Supply of Inventory (MSI) for the first quarter of 2010 shows the differences in the pace of sales within pricing segments. MSI represents the number of months it would take to sell the For Sale (or available) inventory at the current sales pace. A Buyers Market is a MSI of over 6 months; a Neutral Market is a MSI of 3-6 months; a Sellers Market is a MSI under 3 months.

We are seeing the first signs of pricing stability in the under $100,000 market and even in some segments of the under $200,000 market. For our five county market the under $100,000 the MSI is at 3.2 months, a neutral market. For $100-200,000 the MSI is 6.3 months, just above neutral and for over $200,000, 10.4 months, still a strong Buyer's Market.

We are anticipating a roller-coaster year, furious activity the first six months with a slow down in the second half. But keep in mind the hot first half is being compared to a really slow 2009' and the second half of 2010' is being compared to a really strong 2009'. So the stats will show a market looking much worse after June than it really is. None the less, it will be slower, since the core economy has not picked up enough to make up for the loss of tax credits and the possibility of rising rates. All that said, the web traffic increases we are seeing show that just as there is a shadow inventory of bank owned homes hanging over the market, there is also a shadow inventory of buyers just waiting for some consistent good economic news to jump into the market.

The Annualized Home Sales Rate graph gives you a relative feel for the strength of the market, by showing the seasonally adjusted annualized rate of sales for the five counties. You can see that the annual sales pace has been on the rise since the summer of last year. Most signs are good; however the value appreciation light is still not green, so sellers need to remain aggressive with pricing.

Here are our numbers for March and The Annualized Home Sales Rate Graph.

March Market Report