Tuesday, April 27, 2010
Return on Investment
This link is an interesting article about the return you may actualize by making some simple adjustments in your home. Winterization, energy efficient appliances and lighting all play a role in saving you money on energy costs! Please, read on...
Wednesday, April 14, 2010
March Market Update
Business has heated up in the past 45 days. The market activity certainly reflects the tax credit activity.
A view of the Months Supply of Inventory (MSI) for the first quarter of 2010 shows the differences in the pace of sales within pricing segments. MSI represents the number of months it would take to sell the For Sale inventory at the current sales pace. Over 6 months is a Buyers Market, 3-6 months is a Neutral Market and under 3 months is a Sellers Market.
We are seeing the first signs of pricing stability in the under $100,000 market and even in some segments of the under $200,000 market. For our five county market the under $100,000 the MSI is at 3.2 months, a neutral market. For $100-200,000 the MSI is 6.3 months, just above neutral and for over $200,000, 10.4 months, still a strong Buyer's Market.
We are anticipating the year to be a roller-coaster, furious activity the first six months with a slow down the second half. But keep in mind the hot first half is being compared to a really slow 09' and the second half of 10' is being compared to a really strong 09'. So the stats will show a market looking much worse after June than it really is. None the less, it will be slower, since the core economy has not picked up enough to make up for the loss of tax credits and the possibly of rising rates. All that said, the web traffic increases we are seeing show that just as there is a shadow inventory of bank owned homes hanging over the market, there is also a shadow inventory of buyers just waiting for some consistent good economic news to jump into the market.
Click here for the graph that will give you a relative feel for the strength of the market, by showing the seasonally adjusted annualized rate of sales for the five counties. You can see that the annual sales pace has been on the rise since the summer of last year. Most signs are good, however the value appreciation light is still not green, so sellers need to remain aggressive with pricing.
A view of the Months Supply of Inventory (MSI) for the first quarter of 2010 shows the differences in the pace of sales within pricing segments. MSI represents the number of months it would take to sell the For Sale inventory at the current sales pace. Over 6 months is a Buyers Market, 3-6 months is a Neutral Market and under 3 months is a Sellers Market.
We are seeing the first signs of pricing stability in the under $100,000 market and even in some segments of the under $200,000 market. For our five county market the under $100,000 the MSI is at 3.2 months, a neutral market. For $100-200,000 the MSI is 6.3 months, just above neutral and for over $200,000, 10.4 months, still a strong Buyer's Market.
We are anticipating the year to be a roller-coaster, furious activity the first six months with a slow down the second half. But keep in mind the hot first half is being compared to a really slow 09' and the second half of 10' is being compared to a really strong 09'. So the stats will show a market looking much worse after June than it really is. None the less, it will be slower, since the core economy has not picked up enough to make up for the loss of tax credits and the possibly of rising rates. All that said, the web traffic increases we are seeing show that just as there is a shadow inventory of bank owned homes hanging over the market, there is also a shadow inventory of buyers just waiting for some consistent good economic news to jump into the market.
Click here for the graph that will give you a relative feel for the strength of the market, by showing the seasonally adjusted annualized rate of sales for the five counties. You can see that the annual sales pace has been on the rise since the summer of last year. Most signs are good, however the value appreciation light is still not green, so sellers need to remain aggressive with pricing.
Wednesday, April 07, 2010
Tuesday, April 06, 2010
Case-Shiller Report
Here is the latest Case-Shiller Report (January). It shows that the
country is following the same price stabilization trend as the past
eight months. For the first time since mid 2006, across the national
composite, prices did not fall compared to the same month (Jan) of
last year. Although Detroit still showed a decline, the rate of
decline continues to slow. Prices across the country are equivalent to
fall of 2003. For Michigan, prices still fall in the 1996 range. The
good news is we are back to the same "tax frenzy" activity levels we
saw last fall when the first tax credits we expiring - Now is still the time to buy!
country is following the same price stabilization trend as the past
eight months. For the first time since mid 2006, across the national
composite, prices did not fall compared to the same month (Jan) of
last year. Although Detroit still showed a decline, the rate of
decline continues to slow. Prices across the country are equivalent to
fall of 2003. For Michigan, prices still fall in the 1996 range. The
good news is we are back to the same "tax frenzy" activity levels we
saw last fall when the first tax credits we expiring - Now is still the time to buy!
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