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Friday, August 31, 2012

Real Estate One
Norman, W Werner

Norman, W Werner

248-763-2497

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Here's a little report that is generated by my
company and emailed to some of my clients.
It has some nice charts for the Michigan
market embedded. Enjoy!
Michigan Monthly Market Update -
August 2012
July pending sales jumped up from June's pace, proving
once again that our recovery is moving in the right
direction but not in a straight line. Some months are
moving up quickly, others just a bit, but so far, always
up! The overall Months Supply of Inventory (MSI) for
Southeast Michigan hit a five-year low at 4.6 months
and NW Michigan was also at a five-year low of 9.1
months.

MSI Chart
The average MSI is the industry standard index for
following the market direction, but to get to the true
index number we look at the MSI in the market
segment where the majority of buyers are, those
homes on the market less than 90 days.

Value Chart
The pattern follows the same trends as the overall
MSI, falling to the lowest levels during the market
decline, and clearly showing a sellers’ market, which
explains the multiple offers we are seeing in the under-
90-day market. Low inventory is also helping fuel the
rising price trends shown in the following charts with
values picking up speed since the beginning of the year.
Price per square foot is not a pure indicator of 
appreciation, but it does filter out some of the distortion
found in median values as an indicator of general value
trends.

Appraisals have been a challenge for the past 18 months
as appraisal standards struggle to keep up with rising
values.  Although there still are many issues, the good
news is we seem to have turned the corner with appraisal
shortfalls shrinking daily. More and more appraisers will
take into consideration the details on multiple offers in
their evaluations, so if you’re in a multiple offer situation,
and your Realtor is  able to obtain information about those
multiple offers, they should include them in their comparable
presentation to the appraiser.

This month was a particularly strong month for our family
of companies, with the best market share gains across the
board of any month so far this year.

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