Mortgage Guru Ken Mascia from Oxford Financial is back today with a message to buyers who are sitting on the fence in South East Michigan.
Real Estate Market improving?? If you listen to the doom and gloom crew youâ€™d never know it! I have read so many articles in the last few months that exclaim – Last Person Out of Michigan Shut Off the Lights – I am about to explode.
In my office, we make residential mortgage loans in Michigan. Over the past 8 weeks we have been busier than weâ€™ve been at any time in the last 18 months! Why? Homes ARE selling. I am getting a steady flow of new clients who have either identified a home they want to buy or want to get Pre-Approved to purchase a new house. People are finally realizing that this is a GREAT market to be a homebuyer and prices arenâ€™t likely to get any lower. Why? There are a number of reasons:
- Home Sales are up
- Auto company future brightens
- Buyers are realizing great values
- Potential property tax break for new buyers.
Home sales are up? Yes! The Detroit News reported on March 8 that residential home sales in Southeast Michigan rose 6.7% in February. Yes, they rose. According to the National Association of Realtors article dated March 13 â€“ â€œUnderlying trends point to a (national) housing recovery in 2007, but it will take a couple of months for us to get a better handle on it.â€
Auto company future brightens? Really? According to the Detroit News article dated March 14, â€œGeneral Motors sold 9.1 Million vehicles for record revenue of $207 billion, up from $195 billion in 2005. In the fourth quarter, GM earned $950 million on sales of 51.2 billion â€“ its first quarterly profit since 2004.â€ What great news is that! Who would have guessed with nothing but bad news being reported for about 2 years straight? Contrary to popular opinion it seems that the auto industry is not dead.
Buyers are realizing great values! One of my clients bought a cute little house in Royal Oak last month for a mere $110,000, and the house did not need a lot of work. I havenâ€™t seen a house like this sell that cheap in Royal Oak since about 2001. Higher-end homes can be had at even greater discounts. This is probably the best time to be a home buyer in Southeastern Michigan in the past 20 years.
Potential property tax break for new buyers. The Michigan Legislature is considering a new bill which would allow home buyers between now and September 2008 to keep the taxable value of the previous owners! This would mean that buying a new home would not involve a heavy property tax increase and could really spur the market. Itâ€™s not been passed yet, but by all reports it looks like it has a good chance to become law and itâ€™s on the legislative fast track.
So, for all of you who are sitting out there thinking your going to wait to buy a house because you believe prices are still coming down, get off your butt before things turn around and prices start rising. Once that starts to happen sellers are going to stick to their guns a lot more on sales price and a lot of these great deals are going to evaporate. Remember â€“ â€œBuy low and Sell High.â€ Thereâ€™s never been a better opportunity to buy low!
Written by Ken Mascia
[tags]michigan real estate market, michigan real estate market conditions, michigan home buyers[/tags]