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Wednesday, May 15, 2013

Looking back and looking forward - the local Real Estate Market


As of the end of April, the local MLS reported these stats –


Highlights:

· The median sale price for All MLS sales increased to $97,165 – up by 35%

· All MLS sales were up by 6.8% for April compared to April 2012. Even with a 21.7% decrease in Inventory!

· Of the 5,799 sales closed in April 8% (472) were identified as short sales.

· Of the 5,799 sales closed in April 44% (2,522) were identified as CASH sales


Synopsis of Inventory:

· Average Days On-Market decreased by 14 days, from 87 to 73.

· The on-market inventory declined by 22%, from 26,896 to 21,054.

· Approx. 14% of the on-market inventory is comprised of short sales.

· Approx. 13% of the on-market inventory is comprised of foreclosures.

Analysis:
 
What does that mean for you? Well, if you’ve been waiting to see if the market would recover before listing your house, you’ve waited long enough; the market has recovered and taken off, due mainly to the low inventory. You can take advantage of that situation to sell quicker and for more than you would if we were in a more balanced market with normal inventory. Call me today to get an updated Market Analysis for your home to see if you can (and should) sell now.


If you’re a buyer – DARN, you missed the bottom and now will have to pay a bit more. Buyers may also be a bit frustrated by the lack of homes to choose from; however, the ones on the market today are generally in better condition than those at the same price points a year or so ago. The thing you need to be aware of is the need to be ready to act, and act decisively, should you find a home that you like. You will not have days or weeks to make up your mind. Multiple-offer situations and bidding wars are the order of the day now.

 

Buyers have to be ready to jump and you’ll have to bid at or maybe even above asking price to get a really good home. That also means you need to be all pre-approved for a mortgage, if you are going to use one. There’s no time to say you like a house and then go try to get pre-approved – that house will be gone by the time you get through the pre-approval process. It is also better in the current market to use a Conventional mortgage rather than an FHA or VA mortgage, if you can swing it. The rates are generally running lower on conventional mortgages right now and the sellers don’t have to worry about the FHA/VA appraisal/inspection.

Buyers should also note that foreclosures and short sales have shrunk as a percentage of listings and sales, so you may need a plan “B” if that’s what you were looking to buy. There are still some out there and the fixer-uppers are still around, but while they used to be more than 50% of the market, they are now less than 20% in most area Townships.

 
Go to my Web site – www.movetomilford.com to see all of the sold homes statistics for this area for April and year-to-date, along with historical data going back 4-5 years. I’ve already posted the sold homes data there for  first 2 weeks of May, too.

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