April sales continue the same tale of two cities, growing strength in the under $100,000 market and continued slowing in the above $100,000 market, although the rate of decline has begun to decrease in the $100,000 to $250,000 segments. That is good news since recovery in the lower priced markets is the first required stage in a recovery. So far we have seen little effect from the GM and Chrysler news. There could certainly be another negative wave from further auto related changes however I think our market reacted to those changes a year or more ago. The negative impact on the market will be more like a slow leak in a balloon rather than a bursting, not so much dropping our market further as it will extent and slow our recovery.
NAR stats are also showing the beginning signs of a housing recovery across the country with the number of sales rising and housing inventories falling. If your clients are waiting for that perfect time to buy in Florida, Nevada, Arizona, etc, now is the time. More importantly, the same goes for Northwest Michigan as well. Our recovery will be different from the rest of the country, longer and slower, but the national housing recovery will also have a positive effect on Michigan as well.
An important point to keep in mind, more real estate fortunes will be made over the next 5-10 years in Michigan, Florida, Arizona and Nevada than anywhere else in the country!
Our informal survey of the number of vacant homes remains about the same, on average 6-7 out of 10, with more agents indicating that the number is falling as opposed to rising. It still means we are not ready for appreciation to begin, but we are moving in the right direction. You will also notice the large increase in listing inventories for the under $100,000 segments, which is a combination of more bank owned homes in that price range as well as homes that used to be over $100,000 shifting to lower prices.
To generate additional buyer activity, consider dusting off the idea of using Reverse Offers from your Seller back to the Buyer as well as Lease to Own options. Also the new MSHDA down payment assistance combined with the first time buyer tax credit can give a buyer as much as $15,500 towards their home purchase.
