Weekly Market Forecaset

Week of: Monday, June 25, 2007

Present Market Conditions
Mortgage rates dropped slightly last week amid concerns that the housing market will continue to create drag on the economy into the second half of the year. In addition, on Friday the Dow Jones Industrial Average dropped 185 points, the S&P 500 Index lost 19 points and the Nasdaq Composite Index fell 28 points. Now many investors are holding their breath in anticipation of the many economic reports due to be released this week. Some of the highlights include personal spending and income, home sales, durable goods, and consumer confidence. In addition, the Fed will be meeting Wednesday and Thursday for their policy meeting to set the overnight lending rate.

Expectations
While bond yields have recently increased, investors aren’t expecting the Federal Reserve to change its 5.25 percent short-term rate. According to The Wall Street Journal, “With higher bond yields, the Fed now also has less reason to raise its target rate. That’s because businesses and consumers face higher borrowing costs, which are likely to produce slower growth ahead. In effect, the bond market is doing some of the Fed’s job of keeping total spending in the economy, and thus inflation pressure, within the economy’s normal capacity.”

Guidance
Given one of the strongest global economies in 30 years, attractive U.S. interest rates and the over supply of available homes for sale, the residential market continues to present excellent opportunities for home buyers. Consulting with a true mortgage professional will ensure every real estate transaction is optimized to meet your financial needs.

Authored by Georgie Cook
Traverse Mortgage Corporation
(231) 947-9700
(800) 968-3680
georgie@traversemortgage.com

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

Weekly Market Forecast

Week of: Monday, May 21, 2007

Present Market Conditions
The Dow Jones Industrials ended the week on an all-time high. With investors focusing on blue-chip mergers and acquisitions, the buying fever led to record highs. More good news was reported last week as the Labor Department announced that jobless claims fell for the fifth straight week. The number of new filings fell by 5,000 in the week ended May 12th. This brought claims to their lowest level since January. The four-week average, which is considered the better model of underlying trends, fell 12,000 and was the lowest level since the week ended April 2006.

Expectations
The Consumer Price Index rose a smaller-than-expected 0.4 percent in April. Stephen Stanley, Chief Economist for RBS Greenwich Capital Markets, was quoted by MarketWatch as saying, “The moderation in housing costs ‘is one of the most significant developments on the inflation front in a long while.’ If the good news persists, ‘then core inflation will probably turn out better than we have projected’ and the Fed will have ‘more room to ease in the event that we are wrong ‘about the economy bouncing back.”

Guidance
Existing home sales in the first quarter were up 2.4 percent over the fourth quarter of last year. In addition, the average pace of mortgage applications for home purchases over the first two weeks in May was the strongest since January 2006. Conditions for home purchases are ideal. Capitalize on this exceptional season by seeking the assistance of Georgie.

Authored by Georgie Cook
Traverse Mortgage Corporation
(231) 947-9700
(800) 968-3680
georgie@traversemortgage.com

Euro Buying Opportunities

Euro investors looking for real estate buying opportunities should look at NW Michigan where the turquoise waters remind you of the Islands and prices have slipped to historic lows in all categories of property.

If you are a Euro investor looking for a large commercial project designed to capitalize on the abundance of local recreational opportunities, invest in a vineyard, build a marina, build residential condos or build a commercial office building then NW Michigan and the Grand Traverse area should be on your Euro shopping list.

The Grand Traverse area was recently selected as the number two relocation destination in American. We specialize in dealing with International clients and strongly feel that for Euro buyers looking to capitalize on the exchange rate then this is the time and the place.

Authored by

Brent H. Nichols
Principle Associate Broker/Owner

INVESTMENT PROPERTIES

Real estate that is purchased solely to generate income or to be sold when the value has appreciated.

Using this definition is its truest form you are purchasing this property to make money, that’s it! There are no secret gimmicks, formulas, or even a get rich quick scheme, if it was as easy as the real estate billionaires on the infomercials lead you to believe we would all be doing it. Remember these people are getting rich on programs they are “selling” to you.

I really like this “Buy and sell real estate and let the lender carry the tab with no money out of your pocket” believe that one and I have chunks of coal I want to sell you because in time they will turn into diamonds. “I guarantee it”

Lenders will take the risk with you but we’re not going it alone, we will take you with us. In other words, yes, you will have to spend some of your money too. How much depends on credit risk, the lesser the risk the less you have to put down and the better the rate. Ten to twenty percent is generally what you can expect, then it becomes how crafty you can get with the purchase agreement as to how much the seller is willing to participate.

International Realty Plus are highly trained professionals in real estate, they know how to present the deal to the sellers. The experts in how to buy and sell real estate are great at selling books, DVD’s, tapes, kits, and getting you to attend lectures, are they really that good? “Those that can, DO. Those that can’t TEACH” I know I heard that somewhere.

Authored by Guy Cole
Countrywide Home Loans
(231) 941-5767 ext. 226

Weekly Market Forecast

Week of: Monday, April 30, 2007

Present Market Conditions
The Commerce Department reported Friday that the U.S. Gross Domestic Product slowed to 1.3 percent in the first quarter of the year. Growth was led by consumer spending, state and local government spending and business investments. Rising energy prices and a weak housing market slowed growth. In a separate communication, the Labor Department reported employment costs rose 0.8 percent in the same quarter with wages and salaries increasing 3.6 percent in the year ended March 2007.

Expectations
“From my perspective as a monetary policymaker, I would say that, in these circumstances, with heightened risks to both growth and inflation, the best course for policy is watchful waiting,” said Janet Yellen, the president of the San Francisco Fed. Yellen went on to say that she was sticking with her original forecast made at the beginning of the year that growth would pick up in the second half of the year, although she had reduced her forecast somewhat. The FOMC is due to release its next rate setting statement May 9th.

Guidance
Boosted by warmer weather, new home sales increased by 2.6 percent in March and applications for new mortgages rose last week for the first time in six weeks as mortgage rates dropped. This is the critical spring selling season. With these factors coupled with an abundance of homes on the market, it truly is an ideal time to be in “home buying” mode. Capitalize on this exceptional season by seeking the assistance of a qualified, professional Loan Officer (Georgie).

Authored by Georgie Cook
Traverse Mortgage Corporation
(231) 947-9700
(800) 968-3680
georgie@traversemortgage.com

Weekly Market Forecast

Week of: Monday, April 16, 2007

Present Market Conditions
March U.S. retail sales rose 0.7 percent, boosting the U.S. economy. With job gains and higher wages, the labor market remains the main reason why consumers have continued to spend. Though consumer spending is on the rise, consumer sentiment fell in early April to figures that are at an eight month low. This drop in sentiment has been attributed to higher gasoline prices and continued declines in the housing market.

Expectations
Albeit we continue to have a mixed bag of economic news, former Federal Reserve chairman Alan Greenspan feels that the world economy will provide a “cushion” to the U.S. economy. As the trade gap narrows for the third month in a row, Greenspan said growth in the rest of the world is creating demand for services from U.S. companies such as Microsoft Corp. It is predicted by the International Monetary Fund the global economy will grow by 4.9 percent this year, following a 5.4 percent expansion in 2006. The IMF said the U.S. would grow 2.2 percent this year.
Guidance
Fixed-rate mortgages remain below 6.5 percent, there has been a robust rise in non-farm payrolls and there have been solid gains in personal income and consumer spending. These factors coupled with the many incredible incentives being offered with home purchases makes this the quintessential time to purchase. To ensure you capitalize on this excellent scenario, always seek assistance from a qualified, professional Loan Officer.

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