April & May Bi Monthly Newsletter

SUBJECT: Listing activity report for April & May 2007

Summer is finally upon us and what great weather it’s been! The previous two months have been reminiscent of past years with improved activity across our inventory. April turned out to be one of the best months we’ve had in a long time & May also carried a good amount of momentum. The increase we experienced in deals being written and closed, at the start of the year, has continued.

However, you’d have to be living a sheltered life to not have read something in the papers or publications that pertain to the very tough market throughout the nation and, unfortunately, the worst here in Michigan. This trend continues with no apparent end in sight! Realtors are working harder than ever to find buyers, to put deals together and to manage them to a close. The hours required just to survive have increased dramatically. We are very glad to be doing as well as we are and it highlights that in this new economy, business as usual just doesn’t make it. Our Company’s internet presence continues to provide superior representation and marketing in an attempt to locate buyers that the competition cannot.

Overall predictions nationwide are that sellers will need to continue to reduce their asking prices and northern Michigan remains no exception. Price is the primary driving force and not much else seems to matter. Our team is doing its part to stay at the forefront and to seek out as many effective venues as possible to market your property. A couple of examples are new, additional websites such as: landwatch.com & landandfarm.com. Additionally, we’ve utilized new downstate print venues and local publications to advertise not only our inventory but our main website: a 24 hr. /365 day link to the details of your listing.

We expect good activity during the next couple of months, but please keep in mind that most of June and July typically sees a plateau in activity with few dramatic increases until August. Only time will tell, but you can be assured that we will capitalize heavily on any and all inquiries.

Thank you again for your continued loyalty & support. Please feel free to stop by, call or email us at anytime with any comments, concerns or questions.

Brad Nichols
brad@irpmi.com
231-883-2255

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
View My Listings