Michigan Monthly Market Report - December 2012
Traditionally, this time of year sales activity slows, but
not so much this season. Although sales will be less than
peak spring and summer months, they are unusually
strong for this time of year. Our annualized sales rate is
actually higher now than it was this past spring,
meaning we are carrying even stronger buyer demand
into the New Year than we did this year (and this year
was pretty strong).
Listing inventories continue to shrink, as the number of
new salable listings entering the market is not keeping
up with the number of homes being sold. All indications
point to 2013 being a strong year for home values with
both Median and Per Square Foot prices up 20%+ over
the past year, pending sales up 38%, home inventories
down 25%, Days on Market down 24% and foreclosure
sales down over 50%. The combination of great rates,
prices and six years of pent up demand is causing an
extra boost in buyer demand. Because of that, we
expect appreciation rates to be strongest over the next
18-24 months, and then settle back down to a more
normal (but still strong) activity level. Which means an
expiration date is on that sweet spot of both strong
appreciation and low interest rates, so anyone who is
anticipating selling in the next 3-5 years should be
evaluating their housing needs in 2013.
Buyer's lending standards continue to be a challenge, so
here are some simple suggestions to help minimize
mortgage loan frustration:
1. It's never too early to get pre-approved. Preparation
is key to a successful transaction.
2. Once pre-approved, don’t open new debt.
3. Large deposits are watched very closely. Deposits
going in checking and savings accounts need to be
accounted for (large means anything over $500).
4. Bring everything asked for by the Loan Officer up
front at the time of application.
5. As underwriters check and double check files, be
prepared for additional conditions after approvals and
some details needed within the last few days of the
6. Often, if the transaction has been in place longer
than 45 days, ask which information will need to be
November sales were our best of the year, adjusted forthe season and not surprisingly so was our market
If you would like more information on the market, liketo list your property, or want information on any
property with any broker, you may call or email at any
Have a wonderful Holiday Season,
Norman, W WernerPut my team to work for you