Contrary to reports from major media outlets, the real estate market isn’t all doom and gloom.
‘We all say the market’s slower or its down, but you still don’t see any less cars on M-24,? said John Burt, owner/broker of John Burt Realty/GMAC Real Estate in Oxford and Lake Orion. ‘There are still people moving in.?
It’s true home sales were down last year. Countywide they fell by 22 percent from 16,452 to 12,799.
But not everyone thinks it’s time to start standing on the corner with a big sign declaring, ‘Repent! The end is near!?
?2007’s going to be a good year because 2006 wasn’t that awful bad ? at least it wasn’t for us,? Burt said. ‘As a brokerage, we were only down about 6 percent.?
‘I don’t think the drop was as dramatic in reality in Michigan (as the media made it out to be),? said Glenn Bianchini, owner/broker of Century 21 Real Estate 217 in Oxford.
The market’s drop may not have been as bad as reported, but it was certainly no walk in the park.
In 2005, a total of 339 previously-owned homes, new homes and condos (an average of 28 per month) were sold in the Oxford/Addison area. In 2006, the total fell to 228 or an average of 19 per month.
The statistics provided by Chris Hendrix, general manager of Coldwell Banker Shooltz Realty in Oxford, were taken from Realcomp II Ltd. data base, which is Michigan’s largest Realtor-owned Multiple Listing Service and provider of real property information.
Last year there were about $56 million in home sales in Oxford. In 2005, there were $88 million.
‘The real estate market in 2006 was extremely tough,? Hendrix said. ‘It was a challenging market particularly on home owners in Oakland County, but locally it was even tougher.?
But Hendrix is ‘cautiously optimistic? that 2007 is going to be a better year.
And he’s not alone.
‘I think it will be better. I really do. Not great. Just kind of a steady, plodding along. But I think it’s going to be better,? Bianchini said.
One positive sign noted by Bianchini, who’s got 30 years experience in the business, was that the period between Thanksgiving and Christmas last year, which is normally ‘dead? in the real estate industry, was actually fairly busy.
‘We’ve really seen a lot of activity, in other words getting listings, getting sales, getting people interested in going out and looking at homes, more so than in years past,? he said. ‘There’s action going on, there truly is.?
Another positive Hendrix sees if that ‘interest rates are still at almost 40-year lows,? which means it’s a great time to buy for those seeking their first home, people wanting a bigger, better home and those looking to snatch up deals on investment properties.
There’s certainly no shortage of housing on the market.
According to Hendrix, the average number of residential properties for sale in a given month was 542 last year compared to 445 in 2005.
The number of home sales countywide jumped from 11,615 in 2005 to 17,042 last year.
‘We’ve got almost 50 percent more homes on the market in January this year versus January last year,? he said. ‘It’s clearly a buyer’s market.?
‘If you drew a circle five or ten miles out from where my office is in Oxford, you wouldn’t believe how many homes in that circle would be on the market right now. It’s unbelievable,? Bianchini noted.
Hendrix said now is the time for buyers to ‘take advantage of the great (interest) rates and great inventory.? Don’t hesitate.
‘The worst mistake is to sit and wait and hope the market gets better,? he said. ‘One of the keys (to turning the market around) is for these people out there, these first-time home buyers, these investors, these people who are moving up, not to time the market, but to take advantage of it.?
Burt agreed. ‘The prices have come down to where it’s a great time for people to buy,? he said.
Bianchini said the lowering of home prices is a good thing in terms of moving the excess inventory.
‘Some of the prices were getting ridiculous,? he said.
Prices were a hot topic for Hendrix who believes sellers have been having a tough time moving their homes because they’ve priced them too high for the current market.
‘There’s a huge disparity between what people think their home’s worth and what they have (invested) in their home versus what this market will pay for,? he said. ‘I think people have got to be very very careful in pricing their homes with what this market’s going to bear, what the competition is versus just what they have in it.?
Unfortunately, the market ‘doesn’t really care? what people invest in their homes in terms of money and sweat.
One of the big things that will help turn the real estate market around in 2007 is ‘people pricing their homes realistically and appropriately right from the beginning, not six to 12 months down the road,? Hendrix explained.
‘Part of what’s going to fix the market is us doing our job,? meaning brokers and agents have to be ‘candid and straightforward? with their clients about what their home is truly worth, he said. ‘We’re doing them a disservice otherwise.?
‘To just throw it out there at a high price to see what happens is actually a mistake,? Hendrix said. ‘If they can’t price it right, maybe it’s not time to sell it. Maybe they should wait and ride this thing out.?
Another bright spot to note in the real estate market is commercial properties.
‘The commercial market out here is terrific,? said Hendrix, who sits on the Downtown Development Authority board. ‘There are a lot of eyes on downtown Oxford.?
From the two new retail/office buildings under construction downtown ? Centennial Commerce Center and Broadway Plaza ? to the Promenade at Waterstone shopping center still waiting to break ground just south of Meijer, Hendrix said these commercial developments will ‘bring new jobs and more people to the area.? the market, but to take advantage of it.?
Burt agreed. ‘The prices have come down to where it’s a great time for people to buy,? he said.
Bianchini said the lowering of homes prices is a good thing in terms of moving the excess inventory.
‘Some of the prices were getting ridiculous,? he said.
Prices were a hot topic for Hendrix who believes sellers have been having a tough time moving their homes because they’ve priced them too high for the current market.
‘There’s a huge disparity between what people think their home’s worth and what they have (invested) in their home verse what this market will pay for,? he said. ‘I think people have got to be very very careful in pricing their homes with what this market’s going to bear, what the competition is versus just what they have in it.?
Unfortunately, the market ‘doesn’t really care? what people invest in their homes in terms of money and sweat.
One of the big things that will help turn the real estate market around in 2007 is ‘people pricing their homes realistically and appropriately right from the beginning, not six to 12 months down the road,? Hendrix explained.
‘Part of what’s going to fix market is us doing our job,? meaning brokers and agents have to be ‘candid and straightforward? with their clients about what their home is truly worth, he said. ‘We’re doing them a disservice otherwise.?
‘To just throw it out there at a high price to see what happens is actually a mistake,? Hendrix said. ‘If they can’t price it right, maybe it’s not time to sell it. Maybe they should wait and ride this thing out.?
Another bright spot to note in the real estate market is commercial properties.
‘The commercial market out here is terrific,? said Hendrix, who sits on the Downtown Development Authority board. ‘There are a lot of eyes on downtown Oxford.?
From the two new retail/office buildings under construction downtown ? Centennial Commerce Center and Broadway Plaza ? to the Promenade at Waterstone shopping center still waiting to break ground just south of Meijer, Hendrix said these commercial developments will ‘bring new jobs and more people to the area.?