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Wednesday, November 21, 2012

Real Estate One
Norman, W Werner

Norman, W Werner

248-763-2497

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MI Monthly Market Report - Nov 2012
October was the most active new purchase month in
the past two years, giving some great momentum going
into the winter. With inventories at 10-year lows and buyer
activity building, this should be a wild winter for Buyers
chasing their perfect home. To give you a snapshot for the
cause of inventory decline, over the past 90 days sales were
up 22%. Meanwhile, the number of new listings placed
on the market fell 6% compared to last year, which
accelerated area appreciation rates.
Appreciation Momentum is growing
2012 vs. 2011 % Change in Price per Square Foot
 - SE Michigan
October 18.30%
September 14.80%
August 12.80%
These growth rates are a combination of fewer lower-priced
homes for sale and a growing rate of appreciation. Separating
the two is not an exact science, however it appears that at least
a third of the growth rate (or 6%+-) is a true value increase.

Should I stay or should I go? A great song by The Clash, but
with prices rising, also a good question for today's Sellers,
"Sell now or wait?" Since housing is not just about the financial
gain, the answer depends as much on your personal housing
goals as timing the rate of appreciation. However, if you are
looking to move up to a larger home, there is no doubt you
should be looking now. The math is clearly in your favor!

Should I Stay or Should I Go?
Current Home Value $100,000
Value in 2 Years $118,000
Gain by Waiting $18,000
New Home Value Today $170,000
New Home Value in 2 Years $201,000
Gain by Buying Now $31,000
Loss by Waiting ($13,000)  
Plus: Cost of extra interest ($18,000)
Total Cost of Waiting 2 Years ($31,000)
*assumes a 10 year holding period. For simplicity, does not consider
closing costs or tax effects

Right now, a first-time buyer has all the best pieces in
their favor to buy. Rising rental rates, low home prices
and low interest rates make a once in a lifetime combination.
Those downsizing should consider the future interest rate
increase, which makes a move today worthwhile. A 1%
rise in interest rates will offset a 12% rise in appreciation.
We anticipate strong appreciation over the next couple
of years, but not 12%. Though, interest rates most certainly
will rise 1-2% in the coming years. Anyone who is considering
selling in the next few years should be making plans now,
so they can test the market in 2013.

In that vein, we have a great new market update video for you
to use to get an overview of your local market area. It's only
one-minute in length with great charts and a voiceover. Click to
See how it works! http://video-portal.sundaysky.com/realestateone

If you would like more information on the market, like to list
your property, or want information on any property with any
broker, you may call or email at anytime.

Thank you,
 
Norman, W Werner
Put my team to work for you
P: 248-763-2497
normwerner@comcast.net
http://www.normwerner.realestateone.com

My Other Web Sites:
http://www.movetomilford.com
http://www.themilfordteam.com
http://www.mishortsales.net

Also visit:
http://www.milfordhistory.org
 

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