Michigan’s Real Estate Market IS Improving
Published March 15th, 2007 in Beverly Hills MI Real Estate, Birmingham MI Real Estate, Bloomfield Hills MI Real Estate, Buyer Information, Ken Mascia on Mortgages and Finance, Market Updates, Metro Detroit, Real Estate Opinion, Royal Oak MI Real Estate, Seller Information, Troy MI Real Estate.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 you’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 we’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 aren’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 – “Underlying 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, “General 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 – its first quarterly profit since 2004.†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 haven’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. It’s not been passed yet, but by all reports it looks like it has a good chance to become law and it’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 – “Buy low and Sell High.†There’s never been a better opportunity to buy low!
Written by Ken Mascia
Oxford Financial
Birmingham, Michigan
248-644-1200
The Light at the End of the Tunnel is not an Illusion provided by Addicted Eyes.
Finance and mortgage articles by Ken Mascia.
Technorati Tags: michigan real estate market, michigan real estate market conditions, michigan home buyers
Written by Ken Mascia
Oxford Financial, 248.644.1200
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9 Responses to “Michigan’s Real Estate Market IS Improving”
- 1 Trackback on Jul 28th, 2007 at 11:46 am
Its funny I invest in Michigan real estate and have simply been loving our sloooooow market. When things were great, it was very hard to make money because of extensive competition for properties, now no competition, I know its selfish but I hope it never gets better.
Buy High Sell Low!! People that are walking away from the market now are missing a great opportunity! Great deals are out there especially for condo buyers, first time buyers and investors. Human nature, the herd mentality, or what ever makes us want to get in when things are going up and get out when they are going down. People with money and insight are buying now!
You guys are both 100% right! This market offers opportunites we haven’t seen here in Michigan real estate in the past 10 years. I think people are finally waking up to it though - so watch out. Those great deals may start to evaporate as buyers wake up.
Yep! I am seeing homes unavailable when I go to show them after my clients put off going to look for a week or something. Someone has scooped them up. Buyers have come to think they can w-a-i-t and it will be there. That is not true.
If you won should you hold? We moved for career opportunities that we could not find in Michigan. Two houses is very expensive with kids. Do we pay to hold on for two years or just let it go?
Ken,
You are so right, homes are selling! I am a real estate agent out of Northville, Michigan. In fact I’m finding that a lot people are taking advantage of this opportunity. Never has there been a time when prices have been so low along with the combination of interest rates being at all time lows.
Mark Z!
How are you doing? I haven’t seen you for a long time. Looks like you are doing well. Good job highjacking my post to plug your website! Hey, when have clients buying homes give them my number for financing!! Hope to see you soon.
Ken,
Mark’s hijack was interrupted until he provides me with equal advertising on his site. Waiting to hear what he has to offer me.