September pending sales fell somewhat from August but still finished ahead of last September. For Southeast
Michigan, we have had four consecutive months of a rising average price per square foot. That can be explained by
a combination fewer lower priced bank sales and good old fashion appreciation. How much of each is tough to tell,
but certainly there is at least some sprinkling of appreciation in the mix. The charts below show the value per
square foot comparison of this year to last as well as a similar median price comparison for bank owned and nonbank
owned homes.
Home Values - Price Per Square Foot - Five County Metro Detroit
moved steadily upward in the past three months. Average Price per Square Foot and Median values tend to follow
the same trends so looking at both can help confirm a market direction.
Another exciting opportunity is the strength of our single-family home rental market. While home values were
declining, rental rates and demand for rental homes remained firm (as an unfortunate result of so many home
owners now forced to be renters). So investors can now get reasonable cash on cash returns when in the past they
were lucky to just cover their costs (our web sites have an investment analysis button on each listing). The other
side of that coin is that Metro Detroit is one of the strongest markets to own in lieu of renting. The chart below
shows an extreme example of the power of owning vs. renting. In the example, because the Buyer saves $350 per
month over renting, they can actually lose money on the home (in this case the home falls in value over 20%)
and still make a great return on their investment (down payment plus loss on sale)!
be not better time to do it!
(price, status, etc.) come from third party syndicators (like Point2, List Hub, etc.). What does that mean to our
Sellers and us? Most all brokers use these services to send their listings to various sites, so they are more prone to
errors. We distribute directly whenever possible to ensure that our listing information on the web is accurate. So
even if another broker says they send their information to some of the same web sites as we do, our information is
the most accurate and up to date.
Here are our numbers for September. Strong and steady, just like our sports teams!
Total Company Summary - Sept. 2011
# of Buyers to Open Houses 2,416
# of Showing Appointments 14,736
# of Homes Sold/Leased 1,500
# of Web Inquires (Unique Visitors) 180,616
# of Mortgage/Title/Insurance Closings 656
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
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