Michigan is in a very volatile market and I will discuss what is happening in the Ann Arbor real estate market through 4 trend charts and our mls report from The Ann Arbor Area Board of Realtors.
The first chart shows residual inventory has shrunk slightly, new listings are up 2.8 percent and homes under contract are up about 13 percent from last May. We have more sale contracts falling apart so when I hear about National Association of REALTORS® report of increased homes under contract, I shrug it off. Mortgage underwriting guidelines are so stiff I cannot begin to tell you the horror stories I am living through with lenders.

Download the full report, click here.

The next chart shows the Months supply of inventory has ranged from 5.1 to 12 months in the winter. Last May there were 6 months of supply. This indicates a buyers market is still evident. Notice the trend line; the months supply are trending up.

Download the full report, click here.

Inventory units have declined slightly (2 percent) from May 08 to May 09. Units sold are down by 26 percent and under contract are up by 13 percent.

Download the full report, click here.

Finally, the last chart shows Median prices have declined over the last 12 months and the median listed prices have remained stable. Until that gap narrows, we will still be in a buyers market.

Download the full report, click here.

For Washtenaw County, the year to date units sold were 1074 in 08 vs. 1001 in 09 from table insert below. The volume change year over year went from $232,931,457 to $171,143,697. Downward price pressure comes from continued real estate owned bank properties and short sales. The median sales price declined year over year from $187,400 to $135,000. The average sales price went from $216,882 in 08 down to $170,973 in 09.

Interest rates remain in the five percent range for now. The buyer credit is helping spur some first time buyers into the market and it is still a great time to buy.

Federal Reserve released their Beige Book. It’s their report based on observations and comments from business insiders on the state of the economy.

Regarding comments in the report for Real Estate and Construction citing real estate market remains weak, agents in the New York, Philadelphia, Cleveland, Richmond, Chicago, Kansas City, Dallas, and San Francisco Districts reported an increase in home sales. The reasons cited include seasonal factors, low interest rates, declining house prices, and tax credits for first-time buyers. Much of the sales increase was found in the lower-priced end of the market……

1. It’s no surprise that declining house prices are improving home sales. There are so many steals to be had, this is fueling our market.
2. Tax credits for first time home buyers expire December 1, 2009. If you are a first time buyer and haven’t at least started thinking about buying a home or at least talking to a lender about getting preapproved and starting to look for a house. We are seeing many of these buyers writing offers.
3. Interest rates are cited as one of the factors that are encouraging residential sales during this period. What will be a very telling is what effect the bump in interest rates will have on purchases. First time home buyers won’t be affected as much as the trade up buyers looking at moving up who might find it more expensive if the rates rise.

The average sale price of single-family homes for the area was up more than 8 percent over May of 2008, according to the Ann Arbor Area Board of Realtors®. The average home in Washtenaw County sold for $236,897 in May, compared to $217,849 in the same time period last year.

It was an improvement from April when the average sale price was $145,611 vs.$222,798 in April 2008. Trends are more important than a slight blip. I have posted the Housing Trends for Ann Arbor Real Estate Market and will be posting those for some of the other areas in Washtenaw County.

Consumers can buy homes listed by banks, for-sale-by-owner and government departments, like HUD. So inventory may actually be up - in the most distressed markets of the country where shadow inventory isn’t represented by REALTORS®. Fannie Mae and Freddie Mac, among the biggest owners of foreclosed homes, typically have only about 35% to 50% of those homes listed for sale at any given time, according to industry estimates.” How many is that? If Fannie Mae only has 1000 foreclosed homes, then 350-500 of them on the market isn’t a problem, is it? Unless the Government Sponsored Entities actually own a million foreclosed homes, which means the real fun hasn’t even started, with or without improvements in listed inventory. So here is my table for absorption for several key areas in the Washtenaw County Real Estate Market that I track.

1.    Months supply decreased for Dexter, Chelsea and Saline while Ann Arbor months supply increased slightly.  Without actual sales data, or sold pricing trends, inventory data is pretty much meaningless. It’s like saying that because there are less Michigan cherries at the grocer’s today, things are improving in the cherry business, when in fact, the reason there are less cherries today is that they were all rotten yesterday. The grocer threw them out to reduce his inventory; he didn’t sell them. So without analyzing sold data, the decreases in inventory may have come from homes leaving the market un-sold. Now I want to bake a cherry pie. Do you want a slice?

We’re conducting a social media experiment.  We’re seeking to add 100 users to our Fan Pages in the next several days.  If you are a Facebook user, simply go to the following pages and select Become a Fan.  Once we’re at 100 users we’ll announce the Facebook URL assigned to us.

Kathy Toth and Team Click to Become a Fan

We’ll report back and let everyone know how long it took to reach this goal, and the effects of viral marketing online via Social Networking.  Thanks for participating Facebook users.

On to an awkward subject that could help homeowners and sellers in Ann Arbor Michigan save money and do their bit for the environment.

No body likes to waste money or water, however leaking toilets result in six billion gallons of water loss every day.That astonishing figure is a real problem with financial and physical effects. Here’s how the water gets washed away: With more than one billion toilets in the U.S. and, according to the American Water Works Association, one out of five leaks.

Also, handyman jobs are increasing for practical repairs like leaking toilets. These days, in a tough economy, homeowners are trying to preserve their homes and to conserve wherever they can. The toilets can lose anywhere from 30 to 500 gallons of water daily just from a small silent leak that is the size of a staple.

This is particularly important for sellers who will undoubtedly have to survive a home inspection!

Here are a few tips, courtesy of Realty Times to help prevent water loss and leaks.

1. Check toilet for cracks. Even a tiny crack in a toilet can cause significant water damage that may not be visible unless inspected thoroughly.

2. Make sure the base of the toilet is sealed using special waterproof caulking.

3. Replace flappers every two to three years or as needed.

4. Install appropriate device to detect leaks and manage possible toilet overflows.

5. Check for toilet sweat. Not a pleasant concept, it can cause water damage. In regions where the water coming into the toilet is colder than the humidity in the room, the toilet can produce condensation and leave a puddle of water behind the toilet.

Toilet insulation kits are available. They provide rigid pieces of foam that fit inside the tank and prevent the cold water from touching the tank walls. Or you can buy a new toilet with an insulated tank. (This is also a great way to do your bit for the environment!)

While you are there checking the toilet, inspect other pipes in the bathroom, kitchen and laundry room to make sure everything is in good order - make it a habit every few months to check your homes plumbing, that way you should be able to catch any problems early and not have to worry about an expensive (unexpected) repair bill. Particularly before the winter months when pipes can freeze and burst.

Click here to search Ann Arbor Real Estate using our complimentary Ann Arbor Real Estate MLS Search service. Alternatively please contact Kathy Toth and the team if you need more specific assistance in your Ann Arbor Real Estate needs.

www.KathyToth.com
Keller Williams Realty

More exciting news is just in from the National Association of Realtors!

The national real estate statistics for May 2009 have been released.

Sales of existing homes showed another gain in May, benefiting from favorable affordability conditions and a first-time buyer tax credit. The increase was the first back-to-back monthly gain since September 2005. Existing-home sales – including single-family, townhomes, condominiums etc. – rose 2.4% to a seasonally adjusted annual rate of 4.77 million units last month. Single-family home sales alone (which make up a large bulk of sales) rose 1.9% to a seasonally adjusted annual rate of 4.25 million in May from a pace of 4.17 million in April.

Total housing inventory at the end of May fell 3.5% to 3.80 million existing homes available for sale, which represents a 9.6-month supply at the current sales pace, down from a 10.1-month supply in April.

According to Freddie Mac (FHLMC), the national average rate for a 30-year, conventional, fixed-rate mortgage edged up to 4.86% in May from a record low 4.81% in April. However compared to last year these rates are around 2% lower!

Despite all of the great news there is a small snag as Lawrence Yun “However, the increase in sales is less than expected because poor appraisals are stalling transactions. Pending home sales indicated much stronger activity, but some contracts are falling through from faulty valuations that keep buyers from getting a loan.”

The most exciting news however is that Existing-home sales in the Midwest jumped 9.0% in May. Read our blog post with data from the Ann Arbor Realtors Association.

Click here to search Ann Arbor Real Estate using our complimentary Ann Arbor Real Estate MLS Search service. Alternatively please contact Kathy Toth and the team if you need more specific assistance in your Ann Arbor Real Estate needs.

www.KathyToth.com
Keller Williams Realty

Selling a home is tough in any market, nervous homeowners concerned about what prospective buyers think of their home and having their fingers crossed that a home inspection will come back ok!

However the obvious things may not be all that influences a buyers decision to purchase according to a new article by Realty Times. It may come down to what you can’t see!

Sometimes it’s the way the home feels, not just its physical attributes. Buyers make their mind up in the first few seconds of entering a home so as a seller your home has to feel right. Buyers must be able to imagine themselves living there - you can help that with home staging! However as for that “feeling” well, there isn’t much you can control there! Or is there?

Allergies can come into play - 60 million Americans are asthmatic, and if they walk into a home and cannot breathe, that is a problem. Air quality is of vital importance. Limiting allergens is great - so board the dog or cat (temporarily) while you sell you home. Check for mold and use products that contain low volatile organic compounds (VOCs) (such as low VOC paint, shower curtains etc) and use rugs instead of wall to wall carpeting.

Also, clean, clean and clean some more! Clean with hydrogen peroxide or sodium perborate not bleach. Bleach is a common cleaning chemical but it has a very strong odor and, people with highly sensitive allergies to bleach, often immediately can sense symptoms coming on even if with just a brief exposure to the chemical.

Hopefully sellers these few tips can help enhance that “feeling” prospective buyers have when they enter your home!

Click here to search Ann Arbor Real Estate using our complimentary Ann Arbor Real Estate MLS Search service. Alternatively please contact Kathy Toth and the team if you need more specific assistance in your Ann Arbor Real Estate needs.

www.KathyToth.com
Keller Williams Realty

Keller Williams Training in Farmington Hills, MI

Time: June 23, 2009 from 9am to 10pm
Location: Keller Williams Farmington Hills
Street: 27555 EXECUTIVE DR
City/Town: Farmington Hills
Website or Map: http://www.866OwnThis.com
Contact Info: 248-553-0400
Event Type: Training
Organized By: Keller Williams www.KathyToth.com
Kathy Toth & Team Guarantee Sale Program Presentation
I have been invited to present the ”Home Selling System” Guarantee Program at Keller Williams in Farmington Hills. Whether you are a buyer, seller, or agent, this meeting will be beneficial to learn the details. More at www.866OwnThis.com or call 866-Own-This ext 1072 to listen to the audio.

Host:Keller Williams Farmington Hills, Michigan
Time:9:00AM Tuesday, June 23rd
Location:Keller Williams Farmington Hills

May 2009 was certainly an exciting month for Ann Arbor Real Estate!

The Monthly Sales Statistics are in from Ann Arbor Area Realtor Association. The news is encouraging!

Sales figures show 233 residential units sold compared to 303 in 2008. The strong sales numbers for April have not yet translated into a consistent upward trend; however, the average residential sale price is up over last year by almost 9%. Low inventory, reports of multiple offers, and sale prices above list price are all good indicators that the market is moving in the right direction. Naturally of course, the $8,000 first time homebuyer tax credit is an added bonus and incentive for buyers to buy now! Also, MLive.com discusses Green Building - an issue which keeps coming to the decision making table.

In year to date figures released 2008 had 1074 residential properties and 2009 has an impressive 1001. This is not far different from the previous year meaning that the trend is optimistic. By the end of the year it is expected that a strong upward trend will be revealed as buyers take advantage of market conditions.

See the attached document for more detailed sales data for May 2009.

Click here to search Ann Arbor Real Estate using our complimentary Ann Arbor Real Estate MLS Search service. Alternatively please contact Kathy Toth and the team if you need more specific assistance in your Ann Arbor Real Estate needs.

www.KathyToth.com
Keller Williams Realty

Exciting news is just in from the National Association of Realtors!

A combination of factors, including record low mortgage interest rates and the first-time buyer tax credit boosted sales for the third consecutive month! The Pending Home Sales Index nationally rose 6.7% to 90.3 from a reading of 84.6 in March, and is 3.2% above April 2008 when it was 87.5.

Locally, the news is just as exciting, here in the Midwest the index rose 9.8% to 90.4 and is 11.1% above April 2008.

According to Lawrence Yun - NAR Cheif Economist had this to say: “Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market…[as] buyers must finalize their purchase by November 30th”

Video Courtesy of the National Association of Realtors

With new rulings allowing First Time Homebuyers to utilize the tax credit as a downpayment before receiving their check from the IRS it is expected that the upward trend of further purchases will continue. However there are a few snags along the route, mainly that processing time for loans has increased due to a higher level of loan documentation being required by lenders and banks taking a long time agreeing details on short sales. Buyers who hang tight and are cautious will end up with the best deals.

Click here to search Ann Arbor Real Estate using our complimentary Ann Arbor Real Estate MLS Search service. Alternatively please contact Kathy Toth and the team if you need more specific assistance in your Ann Arbor Real Estate needs.

www.KathyToth.com
Keller Williams Realty

Homeownership is the backbone of the American Dream and guess what, it still pays to own your own home!

According to Robert Freedman of the National Association of Realtors magazine, Home-equity snapshots paint a bright picture for the nation and that recent analysis of Federal Reserve data by NAR shows that it is the smartest financial decision to own a home.

In comparison with renters, home owners have much greater household wealth. The Fed’s Survey of Consumer Finances showed that Owners’ wealth exceeds that of renters by a factor of 50-to-1. That is a median of $205,200 versus a median of $4,200. The main wealth difference between the two is home equity of course!

Even with current market conditions, for households who’ve owned their home only since 2003, home equity gains are the rule rather than the exception—and in some cases, equity gains have been significant!

For the complete article click here to see it in a downloadable PDF and here for the online version. See the graph below for a comparison between the top five equity increase markets and the bottom five.

Even if you do not own a home at present, it could be the best opportunity to buy now and make some real equity gains. If you are a first time homebuyer there are some great incentives for you to buy at present!

Click here to search Ann Arbor Real Estate using our complimentary Ann Arbor Real Estate MLS Search service. Alternatively please contact Kathy Toth and the team if you need more specific assistance in your Ann Arbor Real Estate needs.

www.KathyToth.com
Keller Williams Realty