Ann Arbor Real Estate Talk

Today, is the first day of May, the weather is still chilly and the market is also chilly.

Last year from April 1st 2007 to April 30th, 2007, we had closed on 148 homes.

This April from April 1st to April 30th, 2008, we only closed on 29 homes. Now if that is not discouraging enough, of the 29 that sold, 9 were rentals and three were foreclosure’s.

This is discouraging for home sellers who have a home to sell in either Saline or Ann Arbor.

If you include the entire MLS for the Ann Arbor Board of Realtors, this would include all the way from Brooklyn in Lenawee County to Brighton, down through Western Wayne County, there were 373 closings in 2007 in the month of April and only 82 for April 2008.

This means that out of the 1000 Realtors in Ann Arbor Area Board of Realtors, only 82 got a paycheck of any kind in the month of April.

The Missy Caulk TEAM had 9 of those closings in April, making us with about 11% of the total closings. Of the nine closing we had in April, three of the clients were referred to us, and six were buyers from the internet.

My thoughts are, if you are a Realtor and not working the internet you are missing out. Since 77% of all buyers are going on line to look for houses, you must have a STRONG internet presence. When I say strong, I don’t mean a web site. Everyone has a web-site. Your web presence must include PPC ( pay per click) campaigns, and a good follow up system to nurture those initial leads and most important a home search site that is so good the buyers come back again and again.

Good photos are a must. ( did I say good? ) Virtual tours are extremely important. I do a virtual tour on ALL my listings, regardless of price and even on rentals. I saw a photo the other day in our MLS with I guess the seller sitting in his back yard, and another one of a child watching TV. Now that really helps sell houses.What were those Realtors thinking?

Having trouble selling your Ann Arbor or Saline house?

Give us a call or visit us at our home search site.

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If you are a Realtor like myself, or in any profession, you are aware that gas prices are over the top of the roof. I mean really ? Where is the outrage ?

Here is a link to find the lowest price gas prices in Washtenaw County. There is not a lot of difference but some and every 10 cents can help.

If you are driving around, looking at houses for sale in the Ann Arbor Area, start your home search here and save that gas money. You can save homes to your favorites, with Google Maps, Google Satellite Images and Multiple Photos.

Yesterday, my daughter and I went and video taped a home for an out of town buyer. We blogged on it on my other blog, BlogAnnArbor. If you want care to see it.

Ask yourself, is my Realtor doing that for me ?

Are you stuck looking at the 8-10 photos on a web site?

*** We would love to be able to serve your realty needs in Ann Arbor and the surrounding areas of Saline, Dexter, Chelsea, Milan, Ypsilanti.***

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Well, the Spring market is FINALLY here in the Ann Arbor Area market. It has been a while since we have had this flurry of activity in Ann Arbor, Saline, Dexter, Chelsea, Ypsilanti.

This past week, from April 18 to April 25th, we have had 71 homes go under contract in one week. Prices of homes under contract range in price from 49,000 to 499,000.

The condo market is a bit slower with only 10 condos going under contract. Those condo’s have been priced from 69,000 to 373,000.

If you are a seller, and not seeing activity on your home it is time to make a price adjustment, spruce up the yard, get new photos of the outside.

There is nothing more frustrating to potential buyers than to see, photos of your home in the snow.

First impressions matter, many times when I am out showing homes to a buyer if they don’t like the look of the outside, they say, ” no, let’s skip this one”. I hate that because I know the seller has spent time getting ready for a showing. But, when the buyers are on a mission to find a house, they don’t want to waste time going in one that doesn’t have look good from the outside.

My buyer agents have been writing competing offers these past two weeks. The homes selling the best are priced “below” market value. If you are a buyer, we know you are looking for a “bargain” and there are many homes listed and priced to sell. Don’t miss out. At the rate homes were moving this week the Spring Market is here.

You can begin your home search here at Search Ann Arbor Houses. All the homes in the MLS are available not only for Ann Arbor but the entire area of Washtenaw County.

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Let’s see if I dig really hard I can find some good news! Ok, the amount of homes and condos being listed is down, 42%.

That is good news and mostly attributed to Pfizer homes for the most part being gone.

The average sale price in March for Washtenaw County is down to $205,400. That is just unbelievable.

Rather than interpret the data here are the charts for your review. All data is from the Ann Arbor Board of Realtors, where I serve as a Director and compiled by Big House Data in Ann Arbor.

If you are a buyer this is A GREAT TIME TO BUY !!

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The Michigan Senate passed legislation to hopefully stimulate the housing industry in Michigan. A similar stimulus package was passed by the Michigan House last year which would give homeowners a 18 month moratorium on the “pop-up” tax.

What’s the “pop-up” tax?

It is tax in Michigan that effect homeowners when they sell their home and want to move up to purchase a new one. For example, you buy a home in Michigan and the new home buyer gets a notice of an increase in their taxes. Since Proposal A was introduced, it gives the Townships and Municipalities the ability to increase taxes when the home owner sells to the new buyer and the deed is transferred.

Under the Headly amendment, taxes could only be increased up to the rate of inflation or 5% whichever is less. However, when the deed in transferred to the new home owners, taxes go up to the current assessed values.

Here is an example: We were thinking about down-sizing a few years ago. Didn’t need the big house most of the children were gone. We have been in our home for 15 years and our taxes have only gone up incrementally. When we started to look around, to see what we could find in a small home, the taxes were so high, they we decided to stay put and keep the big house with lower taxes.

The Senate Plan would create a 33 month window. It would work by the homeowner getting a tax credit to reimburse new homeowners for any “pop-up” tax.

The thought behind this new bill, in both the House and the Senate is that it would encourage folks in Michigan to move up or down into new homes, without the increased tax liability for 18 to 33 months, whichever compromise is reached. Either way the home buyers would be paying more in taxes eventually, so it is a MORATORIUM, not a tax cut.

Senator Jud Gilbert from Algonac, and Senator Roger Kahn, from Saginaw Township, both Republicans feel this moratorium is necessary to stimulate the Michigan’s housing market and spur the economy.

Here are the bills for further reading: SB 1065, HB 4215

Details can be found at 791, 790 and 4215.

I’m still not sure if this is the solution…

The better answer would be for Michigan to attract more jobs into our state.

As I Realtor who has been selling and marketing home in the Ann Arbor, Saline, Washtenaw County Area for 13 years, I rarely have a client not decide on a home based on the taxes. When it does come up, it is in Saline City, which has much higher taxes than the Townships surrounding it like Lodi, Saline Township, York Township, Pittsfield Township.

Any thoughts on these bills appreciated.

Begin your home search here.

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Ann Arbor, home of the University of Michigan and the only city in the United States with the name Ann Arbor. No wonder you don’t have to search by any other name on Google when you put Ann Arbor in the search.

Here are a couple of YouTube videos that will show you what Ann Arbor is really like, from the dynamic downtown to the University of Michigan.

There are currently 151 homes on the market in Ann Arbor between 100,000 and 200,000

There are currently 136 condos on the market between between 80,000 and 159,000.

Having been a Broker in Michigan for 13 years, this is nothing short of amazing.

This YouTube is my Kurt Westphal on what makes a downtown dynamic.

You can search all the listings in Ann Arbor from Search Ann Arbor Houses.com, or shoot us an email @ Info at MissyCaulk.com  or phone us at 734–821–0757, if you have questions about neighborhoods, schools, parks and recreation, music, and relocating.

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In the 50’s, the average price of a home was $8450.00. Gas was 18 cents per gallon, a new Chevy Corvette was $3631.00, a 17” black and white TV was $179.95, and a 1 carat diamond ring was $399.00. The average income was $5010.00.

I remember when my parents built their home in 1961. It costs $18,000.00 and their interest rate was 8 1/2%. I can hear my dad, saying, “I don’t know how you will be able to afford a house someday, with interest rates so high”.

My husband and I bought our first home in Michigan on a land contract and mortgaged

$68,000. for it on a 5 year land contract for 11%, we were thrilled as interest rates were up over 18%. Michigan’s economy was in a down-turn and there were bumper stickers on cars saying, “The last one out of Michigan, please turn out the lights”.

We had just moved here so it was quite alarming.

The point is: the economy is cyclical. It changes. We need to be thinking long-term and not short-term. Soon we will be back to multiple offers, probably with higher interest rates. That market will be different. There is no quick fix for the problems we are facing, it is prime time to buy if you are going to be here from 3–5 years and need a home or condo.

Downturns can be good. Yes, I said GOOD!

 The market decline although not good for the sellers, as they have lost equity in their homes is a wonderful opportunity to move into Ann Arbor. Ann Arbor was so unaffordable, many buyers had to leave the city get affordable housing. So areas like Manchester, Milan, Whitmore Lake and Ypsilanti Township too off, not it is not necessary to do that.

History is our greatest friend, because we know others have set the path before us, and we can look at our history and know that in the future, we will be back in a sellers market. Those who don’t look at  history are doomed to repeat the past. We will be smarter, and wiser.

There are currently 152 homes on the market in Ann Arbor between $100,000.00 and $200,000.00. That is amazing. Take a look. 

Call us when you ready 734–821–0757 or email:   info at MissyCaulk.com

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To those of us who live in Ann Arbor, we have always thought we were exempt from the rest of the state of Michigan when it came to the housing industry downturns. Not this time. A quick look at Foreclosurenet.net will give you a list of all the foreclosure homes in Washtenaw County. There are 298 homes listed on this site.

Most of foreclosed homes in Ann Arbor and in the State of Michigan are due to homeowners either loosing their jobs or being transferred and not being able to sell their homes for what they owe.

In the 90’s many homeowners were quick to refinance their homes, assuming the market would continue to rise at the historical 8% in Washtenaw County rate.  Opps, it didn’t happen and the refinance appraisals came in high.

As a Realtor when I visited homes and the homeowner told me they had an appraisal that was higher than what I determined the market value for selling to be, the homeowners were dismayed. Traditionally refinance appraisals are always high, as the banks would anticipate the homeowner was staying in their home and not selling. There is a difference in a refinance appraisal and a 90 sale appraisal.

So many, many homeowners refinance, pulled money out to buy a car, take vacations and pay off credit cards. Then the bubble burst and not only did homes stop appreciating but they declined in value. I am currently seeing home prices down to the 1998 prices in many of the areas in Washtenaw County.

If you area buyer this is a good time to take advantage of the market conditions in Ann Arbor and Washtenaw County.

Here is a cute video, I found on YouTube by Dave Girtsman that was linked to on Twitter.

Help is on the way……….

Legislation that allows the Michigan State Housing Development Authority (MSHDA) to create a loan program to assist homeowners facing adjustments in their interest rate passed both chambers and is awaiting the Governor’s signature.

The legislation would allow MSHDA to implement the “Save the Dream” refinancing program, which would be available through lenders and remain an option for individuals. The new program would aid those in danger of losing their homes by refinancing for more affordable payments. Every home spared from foreclosure not only helps the individual, but has a positive economic “domino effect” on communities, cities and the entire state.

If you need to contact a lender to find out about refinancing under the MSHDA program, give me call at 734–824–0757 or email me missy at missycaulk.com

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Below are the market reports with data from the Ann Arbor Area Board of Realtors and compiled my by my friend Todd Waller, of Big House Data.

A few things to point out from a historical perspective from 2005 to 2008:

Average list prices:              Average Sale Price       Average Days on Market   New Listings

2005 $286,800.                     $233,238.                      91                              628

2006 $274,919                      $226,707.                      93                              793

2007 $283,039.                     $247,108.                      99                              1373

2008 $ 255,827.                    $232,250.                     103                              727

Average List price is down 9.5% from February 2007 to February 2008.

Average Sales price is down 6% from February 2007 to February 2008.

Number of closed sales is down 9% compared to February 2007 to February 2008.

Results: For sellers you must be very competitive. Short sales and foreclosures are selling, so are homes priced “below market value” and in excellent condition.

For Buyers: No one knows when the market will bottom out. NOT ME ! No one, so don’t wait too long to take advantage of the best priced homes in Ann Arbor and Washtenaw County.

Begin your home search here.

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Walking in Ann Arbor is a top priority for many homeowners. People wanting to live in the downtown area, Old West Side, Burns Park and Ann Arbor Hills area, have chosen to live there because they enjoy walking to parks, coffee shops, University of Michigan, and grocery stores.

I found a nifty little tool that will help new home buyers see how close the walking distance is to the above. It is called Walk Score. 

Go ahead put your address and in and see how close everything is to your house.

For buyers check out the true walking distance before you purchase.

There are currently 130 homes on the market in Ann Arbor where the listing agent has used the remarks, “downtown”. Ten of those are under contract, so 120 available. They are priced from $134,000 to $350,000.

Email me if you want a the list of homes available: Missy@MissyCaulk.com

Search for homes in Washtenaw County.

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