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Wednesday, December 14, 2011

There's good news and bad news in the chart...

It's feels like the market is comng back in the Milford, Michigan market area and there are statstics to prove that. When I recently went to the Altos Research site to look at the charts that they create for the markets that they track, I got the following chart for median home sale values and inventory for Milford Township and Village combined -

Real Estate Market Chart by Altos Research www.altosresearch.com


It's pretty easy to see that there is good news and bad news in this chart and that perhaps one is actually causing the other.

The bad news is that inventory has fallen off a cliff. People just aren't listing right now, mainly because so many are so far underwater on their mortgages.

As a result, there's good news - median home prices for homes that have sold are soaring. It's a classic supply and demand situation. The demand for homes in the Milford community remains strong, but there are few to choose from, so the few good ones that are on the market are getting bid up.

That's good news if you've been waiting to sell. Values won't recover all of the lost 30-40% that they lost over the last 3-4 years; however, they have started a nice recovery and they are headed in the right direction. If you have a nice home, in good condition, now is a great time to list. There is obviously less competition and there will not be continued downward price pressure. In fact, you may end up on the winning end of a bidding war situation.

Just in the statistics that I track at http://www.movetomilford.com, I can see the turn around. Prices in the Milford market were down below $90/Sq Ft for a while. Now they are back near $100/Sq Ft. That's still a far cry from the $140/Sq Ft average during the peak, but gettign closer to the long term average that we had achieved befoer the market overheated. A steady-state market in the $105 - $125/Sq Ft range is within reason and probably sustainable in this area.

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