September 2012 Local Real Estate Market Update

September 2012 Local Real Estate Market Update Just when we thought the market was going to take a pause, it picked up at an even faster pace. August brought us the highest median and average prices in the past four years, past two years for NW Michigan, as well as the lowest For Sale home inventories and the highest number of sales — all indicators of strengthening buyer demand. So, is this sustainable or just a temporary release of pent up demand? The answer is both; demand is growing both short and long term. Just because values declined since peak 2005 and Sellers were not able to sell, does not mean the reasons that people need to sell stop (births, deaths, divorce, retirement, etc.). The result is a short term build up of demand from six years of sellers holding back as well as a long term buildup as Gen X and Y move into their prime home buying years. So it looks good for us on all fronts, adjusting for the short term economic hiccups we might see (none like what we have gone through in the past six years). Demand would be even higher if it were not for some industry-wide bottlenecks resulting from both the financial crisis and the sudden growth in demand. A recent economic report predicted that a shortage of staffing in the mortgage industry will hold back sales in the upcoming year which makes sense since in Michigan alone, we peaked at about 5,000 mortgage lenders and now we are in the 300s, with the same number of purchase mortgage applications! (as many of you know, we have been on a hiring push in our Affiliates to get ahead of the staffing issues and give us a competitive edge). Add to that a shortage of listings, issues with appraisal values (which are getting better) and the tough lending standards and it is not surprising buyers can feel frustrated. The silver lining is all of these bottlenecks will go away and release even more buyer demand into the market. In fact a NAR study shows that unreasonable lending standards are holding back up to 700,000 real estate sales this year. Here is an update of the chart we sent out two months ago, you can see that the majority of the market activity is well into the Seller's Market range. Another telling point is the average days on market. In August, non-bank owned homes selling in the under 90-day category had an average market time of 13 days, while those over 90 days averaged 153 days.

So with all this great news, how much “play” is there in buyer demand if mortgage rates rise and values jump? The housing affordability index is a good way to test the “play.” Here is how the index works:

So we have some room for the real estate market to continue to grow even with rising interest. In spite of the strong activity, many Sellers are not seeing a benefit. So how does a market look like a Seller’s Market to some and a Buyer's Market to others at the same time? Here is the math: About 15% of homes are still declining in value (up to 10%), based on condition/location, while another 30% are being overbid (on average 9%) with the remaining sold on average within 5% of asking price. The net result gives us a watered down average appreciation of about 3% when in fact it is the "overbid by 9%" segment that gives a leading indicator of where the market is headed. Keep in mind that the typical home on the market in excess of 90 days is, on average 15% over priced, so to that Seller, it feels like the only way to sell is to take a deep discount. Needless to say, we had an outstanding month in August and it looks like a stronger than expected fall market, so take a deep breath and enjoy the ride!

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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

How to Make Your Visualizations a Reality

How to Make Your Visualizations a Reality Posted By suzanne On September 9, 2012 @ 1:07 pm In Best Practices,Business Development,Coaching,Consumer News and Advice,Marketing,Real Estate Training,Real Estate Trends,Today's Top Story,Today's Top Story “Visualize your success” is something we hear a lot of these days. However, we don’t always know how to make our visualizations powerful enough so that they become a reality. Myth: “I’ll believe it when I see it” Fact: “You’ll see it when you believe it” The first step in any visualization process is to believe that you can have it. As an example, let’s consider success in your real estate career. Before beginning to visualize your success, you need to believe that it can happen. As Henry Ford once says,” Whether you believe you can or you can’t, either way, you are right.” If you have trouble believing that it can happen, then most likely you are experiencing some self-limiting beliefs that need to be cleared. Once they are cleared, begin visualizing yourself a year from now doing the following: · Doing work you love · Working the ideal number of hours per week you want to work · Working with your ideal clients, i.e. what characteristics do you want them to have? · Earning your ideal income (pick a figure that is realistic and optimistic) Here’s a typical example of what you might come up with: ” I want to earn $300,000 a year, working no more than 40 hours a week, and I want to work with people who are positive decisive and committed.” Great, now you are crystal clear on your desired outcome. Next, put yourself inside of this visualization, and feel what it feels like. Take a few minutes where you can be alone, close your eyes and live the visualization, as if it’s happening right now. What does it feel like? The more you breathe the more you are available to feel the positive feelings. What positive feelings come up for you? Most people report feelings like: confidence, fulfillment, security, peace, energy, joy, safety and so forth. Please note that by adding the feelings to this visualization, you are energizing your vision. Without this essential step, your visualization falls flat. Here’s another helpful hint: picture your visualization, as a moving picture, not a snapshot. For example, visualize yourself going to the home of a prospective client and giving your listing presentation. Move it forward. See and feel them signing with you. Imagine finding a buyer easily and effortlessly. Visualize the look on your client’s faces as you present them with a flawless offer. The final step would be to imagine yourself with the check in your hand, your name on the check and the exact amount. Here’s the key, imagine your desired outcome as if it had already occurred, with all of your senses involved. Just to recap: To make your visualizations powerful and effective, do the following: 1. Believe you can have it 2. Put yourself inside of it and feel it 3. See the visualization as a moving picture, not a snapshot Follow these steps and watch your visualization become a reality. Dr. Maya Bailey, Multiple 6 Figure Income Business Coach for Real Estate Professionals, integrates her 20 years of experience as a psychologist with 15 years of expertise in marketing. Her powerful transformational work creates a Success Formula for Real Estate Professionals ready to create a Multiple 6 Figure Income. 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