Yesterday Alan Greenspan spoke in Japan saying that the way to stabilize the US financial market is to reduce the housing inventory.  We know that the reason prices are low and getting lower is because there are simply too many homes on the market.  While there are legitimate reasons for needing to sell homes at this time we also are seeing too many homes on the market that are so overpriced they will never sell.  Combined with the huge number of bank owned (REO's) properties this all ads up to an oversupply that will take years to get out of the system. In just the past month I have advised 3 families wanting to sell their home but without a real 'need' to sell to stay put at least for the time being.  This is the most difficult real estate situation that homeowners in Southeast Michigan have ever seen. 

However, it is still a great time to be a home buyer.  Rates are low, mortgage money is available, FHA and VA financing remains a great tool.  This past week the ban on DPA's (Down Payment Assistance programs) was overturned in court.  This means that sellers can pay up to 6% - 3% for closing costs and 3% for down-payment - for the purchaser of their home. Working with a local lender is the key to a smooth transaction.  We've closed several zero down sales in the last month that went without a hitch.  Decent credit, zero down...it can still be done.  If you know someone wishing they could purchase their first home have them give us a call, it's a great time to buy!

Just got the August 07 statistics and wanted to share them on our website.  For all of the North Oakland County jurisdiction both PENDING AND SALE numbers are up for the 3rd month in a row. That means that people did not stop buying last month even with all the terrible press! The North Oakland County jurisdiction includes Auburn Hills, Bloomfield Township, Brandon, Clarkston, Davisburg/Springfield Township, Fenton, Groveland, Holly, Independence, Keego, Lake Angelus, Lake Orion, Orchard Lake and Orion Township.

Pending sales went form 364 last year to 407 this year. Sales went from 313 last year to 372 this year.  This is a 21.7% increase.  Overall, the difference year to date is -.02.  All-in-all a very small decrease. Unfortunately, the number of listings is STILL up 11.2% over last year.  We have way too many listings on the market!!

Both the median sales price and the average sale price are up. The median sale price in this market is $167,050 while the average sale price is $195,583.  The bulk of all the sale this year have been less than $250,000.

Let's look at a couple of market snapshots..there are 2704 listings year to date in Waterford and 516 total sales.  That means that almost 2200 listings have not sold. Independence Towship, 1226 listings and 261 sales year to date leaving 1,000 listings unsold. Orion Township, 1058 listings and 237 sales. Lots of unsold listings. As a seller, your odds still aren't very good but it seems like they might be getting a little better.

Oh, and numbers for the total MLS area (most of southeast Michigan) and Oakland County overall were down. I guess we must be doing something right to see our numbers improve while the others declined.

Are you watching the real estate numbers? Surprisingly, sales were up for Oakland County again in August.  That makes 3 months in a row. I just got the statistics from Realcomp, our multiple listing service, and they were pretty good.  Even the pending sales were up despite all the horrible news of the last 30 days.

Are you following the national economic indicators? They're right here if you want to see them. What I see happening is that as the rest of the country begins to feel the pain that we have been feeling here in Oakland County for the past couple of years that the feds will probably step in and lower rates.  While that won't really help our unemployment and automotive situation it will begin to decrease rates on new mortgages some existing mortgages and equity loans. Consumer confidence is the thing we seem to be lacking the most right now. If consumers see things begin to improve I think they'll feel better about purchasing a home.

Yesterday I was watching Open House on CNN.  This show focuses on everything real estate. I'm an admitted news junkie but I shot off a nasty email to the host of the Open House show. The host made a comment about things being 'so bad that you couldn't get a mortgage if you wanted one!'  Totally untrue.  People are getting mortgages every day.  I guess the only good news for some people is bad news!

Good news!  The Fed has stepped in and lower Discount Rate to %5.75 this morning.  Even though this won't lower mortgage interest rates or misc. consumer interest rates today is presumed that next month the Federal Funds rate could be lowered the same 1/2 percent.  It's good to see the Feds step in and address the problem.  The US economy is  - except the oil business - not in such great shape.  It's about time we see the federal government wake up and smell the coffee!!  Aren't you tired of hearing how great things are?

Ok - let's talk about this one more time.  All of us want this situation to go away but it's not going away so this post is for all of you who have already asked and those who haven't.  Early in August a number of large sub-prime lenders closed their door or quit making sub-prime loans.  Just so you know - most of you don't have a sub-prime loan.  Just because you didn't't have a down payment or got help from the seller when you bought does not make you a sub-prime borrower.  Unfortunately, when this shakeup occurred it eliminated some borrowers from the mortgage market. 

We certainly didn't need LESS buyers in the marketplace now did we?  We, and you, will be seeing more FHA and VA loans since those loans will still be available for low or no down buyers with maybe not perfect credit.  There are still many loan products available and you'll just need to update yourself to find out what is out there for you.

Do you have a Countrywide Mortgage?  All the news about this huge lender has been pretty dismal lately.  If you have a mortgage with Countrywide don't worry.  Even if they go out of business or get bought up by another company it won't affect your mortgage.

We work mostly with GMAC Mortgage and LaSalle Bank (soon to be Bank of America) for mortgages.  Both of these lenders are still alive and kicking and happy to help you with your mortgage needs. 

So - what happens now?  Well, if we had a crystal ball wouldn't't that be nice?  Life goes on and so does the real estate market.  People will always need to buy and sell to achieve their life goals and dreams and as always, we're there to help you in any way we can.  If you have immediate needs, questions, problems, concerns, want to tell us about your new dog...whatever, give us a call!

Tomorrow, let's talk about short sales and foreclosures....