Livingston Co. Real Estate Market Update - May 2011

Hello and welcome to our May 20-11 Livingston County Market Update.

Repeat viewers have heard me talk before about how we try to predict the number of foreclosures coming onto the market. I've said, while we've heard there are many in the hopper nationally, we are skeptical about a surge of more bank owned listings in Livingston County.

This past week, I came across this map of the country showing shadow inventory. Shadow inventory refers to properties that are nearing foreclosure and will be coming on the market. The report that this came from, specifically mentioned Michigan as a state with a low shadow inventory. Because states like Michigan, Arizona, and California had many foreclosures over the last few years, those troubled properties have made their way through the market and there doesn't appear to be a new wave coming. Areas such as the Northeast, where short sales and foreclosures were not very common over the last few years, are just now experiencing what we felt a few years ago. This map would have been all red for Michigan, Arizona, California, and Florida back then.

Last month I mentioned the average sale price dropped $17,000 as compared with the same month a year before. I said I was shocked and hoped it was just an anomaly. I think it was, as the average sale price for April was up significantly from April 20-10. You can see that number is now nearly $16,000 higher. So you know the average year-to-date is just under $150,000 and $3,000 higher than the same time last year.

A quick look at the rest of the April stats may cause stress if we just look at the total sales. While the total is down, the number of traditional sales was up 14%. Getting back to foreclosures again, those sales dropped nearly 44% year-to-year. And short sales dropped 17%. We think this is very good news and certainly aided the climb in the average sale price. Also keep in mind that last April, many buyers rushed to the market in order to get the homebuyer tax credit. Last April was not a normal April. It was similar to typical July sales totals.

Inventory has crept up a little and so has time supply of inventory. This is still a balanced market with relatively flat values overall in Livingston County. For more information on the time supple of inventory in your sub-market, send me an email at todd@buckleyjolley.com.

Many of our seller clients have enjoyed this window of activity with quick sales in 20-11. Buyers are still enjoying great prices, low interest rates, and good choices. Don't believe the national reports, real estate is gaining momentum in Livingston County.

As always, Karen Jolley, our team and I are here to answer any questions you have at 810.229.7000.

Our passion is helping YOU get where you want to go. Take care.

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