Michigan December Market Report

 



 

 

 

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

transaction.

6. Often, if the transaction has been in place longer

than 45 days, ask which information will need to be

updated before closing.

 

November sales were our best of the year, adjusted for

the season and not surprisingly so was our market
share!

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 any
time.

Have a wonderful Holiday Season,

Norman, W Werner

Put my team to work for you
P: 248-763-2497
normwerner@comcast.net
http://www.normwerner.realestateone.com