Something’s Fishy

Bait and Switch Pricing

With our slower than normal market, some Sellers feel it necessary to increase the price when buyers start showing an interest in their property. I don’t know if it is to protect their current asking price or what…..my thoughts are: Listing agents should counsel their sellers to “grandfather” the recent inquiries-especially if it is down to collecting data from the listing agent, etc…or at least the listing agent should extend a courtesy call to the agents of those recent inquiries advising them that the seller’s are raising the price.

It is a challenging market, and this practice makes it all the more challenging.

Authored by:
Rick Jackson, Realtor
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The “State” of Real Estate in Michigan

Regardless of where I look in Michigan it appears that the volume of property currently on the market, and coming to market, far exceeds current demand. News reports trumpet the sorry state of the economy in Michigan; the demise of the American auto industry (at least the so called big three); highly unfavorable tax structure for businesses; loss of industry to other states; and, sadly loss of many skilled and unskilled jobs.

These factors have led to the glut of real property on the market in Michigan and depressed prices throughout the state from levels seen in 2000-2003. Adding to the unsold inventory of vacant property and homes, are the many homes coming to market through foreclosure – one in thirteen homes in Michigan is currently in foreclosure according to the press releases. Have we reached bottom yet in this buyers market? I don’t think so! Many downstate owners of property are being forced to put their property and second homes up for sale due to loss of jobs, further adding to a saturated market.

So is the glass half empty of half full? In my opinion it is a buying opportunity seldom seen in my lifetime. In the Grand Traverse area of Michigan for example we have homes in every category available at dramatically reduced prices and an unsold inventory approaching three years at traditional absorption rates. Want to steal something? Come to NW Michigan and capitalize on this buyers market.

What we are seeing is our buyer base shifting to those with money from other states and European buyers due to the incredible strength of the Euro, now at more than 35% of the dollar. In the St. Pete area of Florida for example more than 30,000 European buyers have bought property in the last three years capitalizing on somewhat depressed property values and a very strong Euro.

For a real estate broker the question seems to be how to attract those buyers with money and the Europeans.

Authored by:
Brent Nichols
Principal Associate Broker/Co-Owner

Squishy Maybe, but Not Soft

By now, everyone has heard a report describing the housing market as “soft.” Reports also indicate that Michigan’s economy is “not the best.” Reports are one thing; what is happening in a specific area is something entirely different! It is important to speak to a professional who knows the market in the desired area to get the facts. A good example is Grand Traverse County. The numbers on the chart below provide a reference point for evaluation.

* Statistics for 1992 thru 2005 pulled from Traverse Area Association of Realtors multiple listing site. Statistics for 2006 added to table from independent search of multiple listing site. **Average days on market (DOM) statistic not available at this time.

We saw a slight dip in sales in 2006 but we are already seeing a comeback. For January 2006, there were 51 homes sold compared to 57 already reported sold in January 2007 and we still have days left in the month. I am currently seeing a lot of Buyer activity in the “starter home” price range of $80,000 – $120,000, the range of $180,000 – $220,000, and above $350,000.

The GT area has been discovered as a destination place for second home buyers and retirees because of the surrounding beauty as well as the available amenities. I expect to see an increase in these two areas of the market as out-of- towners become even more aware of the opportunities our area offers.

As a professional Realtor who is familiar with the housing market in Leelanau, Benzie, Grand Traverse, Kalkaska, and Antrim Counties. I enjoy assisting Buyers and Sellers in making that important decision on when best for them to enter the market to best meet their goals.

I am a firm believer that there is ALWAYS someone selling and another person buying. It is my knowledge and experience as a professional that brings the Buyer and Seller together.

Authored by:
Diane Mack, Realtor
diane@irpmi.com
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