Market Report for January 2013

Norman, W Werner 248-763-2497

Michigan Monthly Market Report – January 2013   December ended the year with strong momentum (our strongest month of the  year seasonally adjusted), carrying about 20% more buyer interest into 2013 than we had going into 2012. Buyer demand will build as those who were forced to sell and rent are now coming back into the market to buy, along with stronger economic growth.  An offset to that increase will be additional inventory as prices rise to meet the target home values  many Sellers have been waiting for, as well as more investors begin to put their homes on the market.   In spite of an increase in homes for sale, we can expect an inventory shortage throughout 2013. Buyers will have to be more creative and will need to make some compromises in their home searches.   Ideally, you want to buy a home that will be the easiest to sell; updated, homogeneous design to the area, good schools, not too remote, etc. However, that is the same advice every-one is given, so those homes sell fast and they do sell for a premium. Nonetheless,  if you can find one, buy it! With today’s prices, that premium still makes sense. That does not mean you should shy away from the less than perfect homes. In fact, that is where the best bargains lay, in those homes that need some work or are not in the perfect location. You will sell them for less than the "perfect" house, but you also may be able to buy them for a larger discount, so you may actually come out ahead from an investment standpoint.   The market statistics chart below tells the story of how far the market has moved since the end of 2011, with large double- digit positive changes in most categories.   Market Stats: Dec 2011' vs. Dec 2012' – Southeast Michigan Market Area 2011 Dec' 2012 Dec' % Change   Median Sale Price $70,500 $92,500 31.21%   Average Price per Square Foot $68 $82 20.59%   Average Days on Market 71 65 -8.45%   For Sale Inventory 23,600 14,400 -38.98%   % of Current Bank Owned Listings 35% 23% -34.29%   Months Supply of Inventory (MSI) 6.3 3.3 -47.62%   % of Bank Owned Sales 37% 24% -35.14%   % of homes selling over List Price 18% 30% 66.67%   Median Price Bank Owned $50,000 $60,000 20.00%   Median Price Non-Bank Owned $88,250 $112,500 27.48%     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. Thank You,   Norman, W Werner Put my team to work for you P: 248-763-2497 normwerner@comcast.net http://www.movetomilford.com