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
vs. 2011 % Change in Price per Square Foot - SE
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
Value in 2
New Home Value
New Home Value
in 2 Years
Gain by Buying
Plus: Cost of
Total Cost of
Waiting 2 Years
*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.
I'm a pre-Baby Boomer who just happens to be into technology and the Web. I created and maintain 6 Web sites - three for real estate (see above for links), one for the Milford Historical Society, one for teh Milford Car Show and one for my church. I've been a Realtor for a little over 10 years.
Prior to selling real estate, I had a 30 year career selling and marketing computers and related software and services for a variety of IT industry companies, many of them now long gone - Burroughs, Digital Equipment, Compaq, HP, EMC and SGI. I still keep up with what's happening in that space.
Now, I focus upon real estate, with a specialty in historic houses in and around the Milford, Michigan area. I'm also focusing more andmore on the needs of aging home buyers, since that is a category into which I fall myself.
I hope that you enjoy reading my blog as much as I enjoy creating it. Feel free to let me know your opinions or to add your comments to mine. I also have another blog - normsmilfordblog.com that is a bit more unpredictable in its content. Try it if you haven't already.I'm also on activeRain, Facebook, Linked In and Twitter.