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?

Ann Arbor is well known for its small town feel, award winning homes and companies, even at the 2009 Detroit Home Design Awards a local Ann Arbor company, Architectural Resource, LLC was honored with receiving design awards in four different categories including recognition in both of the remodeling categories.

The Detroit Home Design Awards (DHDA) program is Michigan’s residential design competition showcasing the region’s top design talent. The awards program, now in its fifth year, was authored by Detroit Home, a publication devoted to discerning residential architecture and decor.

The awards included two first place awards: one for a whole house remodel and addition in the Remodel Less Than 1,000 sq ft. category, and one for a unique stairway design, which was itself part of a remodeling project, in the Contemporary Stair and Railing category. The company was also presented with a second place award in the Traditional Interior Design category and a third place award in the Large Remodel More Than 1,000 sq ft. category. All of their projects were located in Michigan.

Having a well designed home to live in is key, luxury homes are designed with important living elements all considered. There are many custom built and designed luxury properties for sale in Ann Arbor, if you are thinking about relocating to Ann Arbor or the surrounding communities then be sure to contact us.

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

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

The National Association of Realtors is asking lawmakers to help improve energy efficiency in homes by offering incentives to homeowners.

We have already spoken how going green not only helps conserve resources and save the planet, but also how it can aid you in the sale of your home!

However in the long term there is a natural trend towards conservation, recycling and renewable resources. Enticing homeowners to improve their energy efficiency is no easy task!

NAR has expressed support for the approach and overarching goals behind the Green Resources for Energy Efficient Neighborhoods (GREEN) Act, H.R. 2336. The National Association of Realtors believes that improving the energy efficiency of the nation’s homes and buildings can be best accomplished with incentives and education.

H.R. 2336 would establish incentives to encourage energy efficient building, rehabilitation and upgrades. In addition, the bill provides a loan fund for states to implement renewable energy projects and would encourage a number of U.S. Department of Housing and Urban Development demonstration and pilot programs that would provide best practices and great experiences for promoting energy efficiency in housing.

This is welcome news as small changes in our neighborhood have an impact on the nation and the world as a whole.

Developers have started to building green homes (for instance using solar panels) and Americans as a whole are learning ways to decrease energy usage whilst not compromising lifestyle.

Watch this space for more information on this bill and details of any incentive for Ann Arbor homeowners to become more energy efficient!

Turn your energy efficient efforts into not just an environment saving project but a selling feature!

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

“Green”  - a buzzword being used by all at the minute. The old saying “Reduce, Reuse, Recycle” has become so popular these days! It seems like ever part of our lives has been touched by the “going green” phenomenon. However, in Real Estate, the idea is just starting to catch on and the effects are fantastic.

“green” homes are what many buyers are interested in these days. According to the National Association of Home Builders (NAHB), as much as 90 percent of home buyers think that energy efficiency is a very important factor when shopping for a home. Also there is some research suggesting that buyers will pay a premium to buy a a “green” home from a developer - allegedly, 61 percent of consumers would spend more than $5,000 upfront to save on utility costs! Green is the buzzword for the moment alright and it looks like it is going to stick around for a while.

However, how can you jump on the green bandwagon and potentially benefit from it?

Well, going green could help you sell your home. Of course we are not talking huge renovations like solar panels or anything like that, however small simple steps which could help lower your energy costs and help make your home a little “greener” and potentially attract more buyers include; Installing appropriate insulation (in walls and ceilings, particularly the attic space!), using high-efficiency windows instead of those that minimally meet the energy code, Purchase/upgrade to Energy Star-rated appliances and install only low-flow water fixtures.

One of the best pieces of advice is to seal all gaps in any walls, doors and windows. This can make a huge difference!

In addition you can, for your own piece of mind also ensure you recycle as much as possible and install energy efficient light bulbs throughout the house to help lower your utility bill. These pay for themselves in around 6 months!

Turn your energy efficient efforts into not just an environment saving project but a selling feature!

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

So where do you want your homes exposed? As a seller, your home needs to be on REALTOR.com since consumers go there the most.

To get the most exposure for your home, you need your agent to have an enhanced web presence like the shot below from a Dexter home seller.

As an agent you need to provide the showcase, a tour and as many photos as possible.

As a home owner, you need to request to see how many visits your agent draws so you can find out if your home will get the best exposure. The report below shows my realtor.com site generates about 20,000 visits per week. My other sites generate sizable traffic, but more importantly they generate inquiries or leads for my sellers. Other sites include:

Finally, I provide other data so the Ann Arbor Area Real Estate seller knows and I know how many eyeballs have looked at the tours like below. It shows 1515 visits in April 2009 for this home.

If you think this is interesting, let me know. We have other reports we share with our Washtenaw County real estate clients. Keeping our Ann Arbor Real Estate sellers informed on market activity is critical in the changing market.

Click here to search all listings in Michigan with pictures and tours - FREE!

Click here to search all Ann Arbor area Michigan homes
and condos with pictures and tours - FREE!

Kathy Toth and Team

www.KathyToth.com

Keller Williams Realty

The Ann Arbor Real Estate Market as of the end of April 09 is following the seasonal trend you would expect.  However, the inventory was stabilizing, actually down slightly as shown in the graph below.  But sales are down as well.  Refer to chart below.

In April 08 units for sale were 871 vs. 813 in April 09.  Units sold were in April 08 73 vs. 62 in April 09.  See chart below.

The key to the market is in this next graph.  The median price for sale is about the same, but sold  median price is down 27 percent in the last year.

Market dynamics continue to unfold this year.  We all hope to see the bottom soon.  The Ann Arbor Board of Realtors reported declines for Washtenaw County in table below.

Ann Arbor Board or Realtors year to date prices went from $217,631 in 08 down to $151,111 in 09.  This price pressure is coming from continued foreclosure and short sale deals.

The Michigan Association of Realtors reported a decline for the state in prices of 27% year to date in 09 vs. 08. For a look at the Michigan Association of Realtors statistics for April 2009 click here.

Saline actually saw some price increases recently.  There are some hopeful stats nationally being reported by the National Association of Realtors, with increased pending sales too.

Click here to search all listings in Michigan with pictures and tours - FREE!

Click here to search all Ann Arbor area Michigan homes
and condos with pictures and tours - FREE!

Kathy Toth and Team

www.KathyToth.com

Keller Williams Realty

So, I read this from True Gotham’s post;

“If you’re considering hiring a real estate professional to market and sell your home in today’s challenging environment, may I strongly suggest hiring a team as opposed to an individual.  An increase in inventory paired with a decrease in the pool of buyers has resulted in a slower spring market than most have grown accustomed to.

All of that said, it has never been more important to have multiple agents available to physically show properties precisely when prospective purchasers want to see them.  Here is just one example of how a multi-member team benefits a seller:

Buyer calls for an appointment for 10:30AM on Friday:
Individual agent: “I have another appointment at that time so can you do 3PM?”

Buyer’s agent: “Sorry I only have the client in the morning.”

Result: With more inventory to peruse in today’s market place there is a very good chance that this buyer will find something else without ever seeing your home.

Solution (TEAM APPROACH): “Of course we can show at 10:30AM on Friday.  You will be meeting so and so from our team and their cell phone number is blah.  They will see you then.”

It really is THAT simple!  More bodies, more availability to show and SELL your home.  In a market where buyers have more choices, you absolutely want to make sure that your property is among the pool of those from which they are choosing.  If they can’t see it, you can’t sell it.”

I wanted to share my experience from last night. I showed a house and the buyer wanted to return to the first house seen earlier in the day. I called the office at 6 pm which was closed. I called the listing agent’s phone and the message said if it was an emergency to call her cell. I called that cell number per the message and got another voice mail and left a detailed message asking that we be able to return to show the house again. NO RESPONSE. Opportunity missed for that seller!This is the next day and still no call from the agent.

While nothing is perfect, I agree that the coverage is far superior with a team You see, we have the phone manned and can forward the phone 734-669-0337 to a live person for coverage. Knowing what I know as an insider, I would prefer hiring a team. Our clients agreeThere are many more advantages to working with a team.  Ask for our list of interview questions to help you decide.

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