Commerce and White Lake - two looks at a double dip

The chart below from Altos Research shows median home values of sold homes and the inventory level in the Commerce Township, Michigan market here in southeastern Michigan. It also shows what the double-dip looks like at the ground level.



Although median home values contined to fall throughout the fall of 2010, there was an increase in the inventory levels for a while near the end of the year. That was likely a false increase, caused by the pause in the sale of foreclosed homes as the big banks went through a review process of their practices.

The same thing happened in White Lake Township right next door (see chart below, also from Altos Research), although a bit out of sync.





Both of these townships are fairly well populated and both have large inventories of distressed homes. So far in 2011 there is no end in sight for the downward trend across the region in sold homes median value, nor in the slide of the inventory. The inventory reduction in Commerce may end up being a good thing, since we are approaching what used to be called a "normal" market in terms of months of inventory - now down to about 9 months across the reagion, where a 6 month supply would represent a balanced market. White LAke had a spike in inventory, but it too has started back down.

So far in 2011 there have been 48 homes sell in Commerce Township at a median sold price of $180,000 and an average sold price per Sq Ft of $87. In White Lake 27 homes have sold in 2011 at a median price of $137,000 and an average price per Sq Ft of $70. Of the sold homes for 2011 in White Lake 67% were distressed sales. In Commerce the distressed sale percentage for 2011 so far is 50%.

See all of the statistics for my market area at my Web site http://www.movetomilford.com