What's happening in Milford real estate

I've set up this blog as an adjunct to my Web sites - www.themilfordteam.com, www.MIHomeBuyer.com and www.MoveToMilford.com, which I invite you to visit. I'll be discussing the real estate scene in Milford, Michigan and I invite your comments or additions.

I work for Real Es ate One in Milford and have been selling real estate in the area for about 5 years now. I live in one of the historic homes juts a couple of blocks from downtown Milford and specialize in representing the fine old homes of the Village. My focus is Milford, Highland, White Lake, Commerce and Orchard Lake/West Bloomfield. I include Orchard Lake and West Bloomfield because I spent 23 years living in Orchard Lake, before I moved to Milford, so I'm familiar with it and still have lots of friends and contacts in the West Bloomfield/Orchard Lake area.

So, what about the Milford real estate scene? We have not escaped the current doldrums brought about by the economic downturn in the state. We too are in a "Buyers market", which means that we have too much inventory on the market, too few buyers and dropping prices. Property values have dropped 8-10 percent over the last year. We've also experienced fairly little appreciation over he last 3-4 years, so the net is that sellers are getting far less than they expected for thie homes. Buyers, on the other hand are getting some pretty good deals. Owners who are selling to downsize are at least getting the advantage of being able to buy their new home in this down market, so they are probably braking even on the deal. Owners who have been taking advantage of the "cheap money" come-on from mortgage companies ove rth last several ytears, and who now need to sell, are in the most trouble, since their homes are likely worth less today than when they last refinanced. They are "upside down" on their homes. We also have outr share of foreclosures out here in Milford, mainly in the more upscale houses. We're probably tracking to the state statistic that shows 1 in 23 houses on the market is in foreclosure.

What's selling right now are the starter homes - under $200K and homes in the $200-275 range. Of course, lakefron homes are still selling, if the lake is a good all-sports lake. The market above $300K for non-lake-front is very slow and the market above $400K is nearly dead. To sell an upper-end home, it has to be in tip-top shape and the pricing has to be aggressive. Sellers in this upper end may have to plan on bringing money to the closing table to sell or they have to be willing to wait out this slow market. I'm telling my clients that it's a 1-2 year process right now in that upper end.

Let me hear from you on your selling expereince or with any questions that you might have.