The latest Case-Shiller Report, released by S & P/Dow Jones is a good tool to confirm the direction of the market a couple of months back. The latest report (see graphic below) confirms that the real estate market continued to recover nicely through the end of October. The report itself contains sales data that supports that conclusion from all of the major markets, with only two major markets - New York and Boston - reporting negative appreciation. In general the numbers say we're back to the 2003 level as far as average housing prices go. That's good news, but keep in mind that 2003 was a good 2-3 years before the peak in values, so we have a ways to go to get back to break even for those folks who bought at the peak, in the 2005-6 time frame. Also remember that the run-up was at a very fast pace and the recovery is occuring at a more traditional appreciation pace.
Case-Shiller just confirms what I've been reporting for a while now and what the data that I collect about the nine markets that I track are showing. In fact, some of our local markets are dong much better than the trends shown in the Case-Shiller charts. In addition to the Average Home Sale Price that Caase-Shiller focuses upon, I look at some other key indicators of market health. I report the average and median SEV multiplier (a unique Michigan thing - the State Equalized Value for homes is supposed to equate to 1/2 of it's market value, although it is seldom right on that mark) for sold homes, as well as the average and median sold homes cost per square foot. I believe that those are very important market health indicators for our area. Most area sales are running at 2.2 to 2.4 times SEV right now and several markets have broken back through the $100/Sq Ft. mark (the Averages were down as low as $80/Sq Ft in most areas at the bottom of the market).
If you'd like to read the entire Case-Shiller Report, click here. And if you are really into statistics and want to see what our market has been like, go to MoveToMilford.com and click on the What have homes in this area sold for? choice.
This is good news for would-be sellers. The market is coming back! If you haven't had an updated Comparative Market Analysis done lately you may already be missing the boat. Locally, we are in a Sellers' Market, with sellers getting top market prices and selling good homes very fast. If you're in Milford, Highland, Commerce, White Lake, South Lyon, West Bloomfield, Green Oak, Brighton or Hartland call me for a free Market Analysis - 248-763-2497.
For buyers there are still good deals out there; but, you've already missed the boat in terms of the market bottom; that actually happened mid last year. Waiting longer only gets you higher prices. The mortgage rates are still low, so get in the game. Let me find the right hose for you and still get a good deal.