Michigan Monthly Real Estate Market Update - January 2012
January continued to show positive growth signs with pending sales jumping compared to last January. Values per square foot also moved up in most price categories, with even the upper end showing positive movement. The Months Supply of Inventory dropped quite a bit even with a slight increase in new listings, as pending sales rose more than enough to absorb the extra listings. Percentage of new listings that are bank owned listings had reached a two year low of 30% (Washtenaw County is the lowest is SE Michigan at 17%, with NW Michigan at about 10%), but that is expected to rise as the year goes on as lenders finally begin to release their inventories.
Buyer activity has grown as well over the past 90 days, with the number of property showings up 3% and the number of open house visitors up 20% (certainly influenced by milder weather compared to last year), which means our spring selling season may get a head start this year!
Showing activity per listing is up as well in all counties, moving from about 1.8 showings per week last Dec/Jan to 2.0 this past Dec/Jan an 11% increase.
Prices have shown the same upward movement. Values per square foot in every price category have shown positive numbers over the past 90 days.
CHART: Value Trends by Price Range - SE Michigan
CHART: Value Trends by Price Range - NW Michigan
We have the strongest pent up demand we have seen in the past six years going into the spring market. A good share of that pent up demand is being held back until prices rise a bit more, but even a small rise in prices will bring an increase in listing activity.
All that said, Sellers should continue to be aggressive in correctly pricing their home since statistically 70% of homes are listed above the price that will attract an offer. Buyers should be aggressive with their offers since the majority of buyers are all focusing on the 30% of properties that are priced to market.
If you'd like more information on the market, like to list your property, or want information on any property from any broker, you may call or email at anytime.
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Sunday, February 26, 2012
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