The number of residential real estate sales increased last year compared with 2008 in Oakland, Wayne, Macomb and Livingston counties.

However, if foreclosure sales are taken out of the calculation, the number of sales decreased.

The median price for non-foreclosure sales showed a strong increase toward the end of the year but it still ended lower than 2008, according to year-end figures released by the Farmington Hills-based MLS Realcomp II Ltd.

“What we saw is that the consumers are showing some confidence in the local economy, enough confidence to actually go out and buy a home,” said Doug Hardy, president of Century 21 Today Inc., chairman of the Birmingham office of SKBK Sotheby’s International Inc. and president of Realcomp.

The total number of units sold in foreclosure and non-foreclosure sales in Oakland, Wayne, Macomb and Livingston counties showed a combined increase of 19.3 percent to 55,100 in 2009 compared to 46,200 in 2008.

However, that figure was held up by foreclosure sales.

Units sold in non-foreclosure sales decreased year-over-year with a total of 21,900 in the four counties, compared to 24,300 in 2008.

Likewise, the median sale price for non-foreclosure sales decreased in the four counties compared to 2008.

The average median sale price for 2009 decreased by 13.2 percent in Oakland County from $173,600 in 2008 to $150,700 in 2009.

In Wayne County, sale prices decreased by 1.1 percent to $85,900 in 2009 from $84,900 in 2008. Prices decreased by 15 percent in Macomb County to $110,400 in 2009 from $130,000 in 2008. And Livingston County showed a 14.1-percent decrease to $158,100 from $184,000 in 2008.

The only price increase was in the city of Detroit, with a 32 percent year-over-year increase to $15,400 from $11,600 in 2008.

One bright spot is that the number of non-foreclosure sales showed a dramatic increase compared to the same month in 2008 toward the end of the year.

For the four counties combined, there was a 23.3-percent increase in non-foreclosure unit sales in October, compared to 2008, followed by 63.2 and 63.3-percent increases in November and December.

Hardy said it is not typical to have increases toward the end of the year, and he attributed the increase to the new homebuyer tax credit — which had been scheduled to end in 2009, but was later extended — along with low interest rates and great value for homes.

“There’s probably no better time to buy a home when you consider the interest rates and the home prices,” he said.

By Daniel Duggan

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The homebuyer tax credit has been extremely successful and has really had a positive impact on the real estate market. Hundreds of thousands of homes have been sold as a result of buyers taking advantage of the tax credit. The credit was scheduled to expire on November 30th but has been extended and expanded! The new credit will be good thru April 30th! Here are some of the specific details:
Continue reading ‘HOMEBUYER TAX CREDIT IS EXTENDED!’ »

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Dr. Douglas H. Hardy, chairman of SKBK Sotheby's International Realty in Birmingham, who is showing homes to Fiat executives, says they are awed by the size of appliances in U.S. kitchens, such as this one in Bloomfield Village. He adds: "The size of the refrigerator blew their minds."

Three months after Italy’s Fiat took a controlling stake in Auburn Hills-based Chrysler, new Chief Executive Officer Sergio Marchionne has a condo in Birmingham and more Italian executives are moving into the area.

“Everyone is genuinely excited that the Italians are coming,” said Ed Nakfoor, a Birmingham-based retail consultant. “Everyone thinks they are these chic people.”

Dr. Douglas H. Hardy, chairman of SKBK Sotheby’s International Realty in Birmingham, whose firm is handling Fiat’s relocation’s, said Birmingham, Bloomfield Hills and Bloomfield Township have been popular locations. Potential buyers are looking at homes starting at $200,000.

“We are working with two to three a month,” said Hardy. “They are sending their top people so far. They are establishing a camp first.”

Still, most Fiat executives moving here are leasing, despite low home prices. That’s in contrast to the 1998 union of Daimler-Benz and Chrysler. German employees settled here in greater numbers and tended to purchase homes, said Carolyn Bowen-Keating, a relocation specialist for Coldwell Banker Weir Manuel in Birmingham.
Continue reading ‘Italians get taste of U.S. Kitchens, stores wow Fiat’s execs’ »

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Buyers Are Coming Back Into the Market— and Getting Great Deals

Whether the real estate market is in turnaround is still a question, but what’s not up for debate is that some market insiders are detecting encouraging signs. One real estate agency in Savannah, GA, reports a healthier first quarter than a year ago. A suburban Detroit broker is seeing an uptick in sales volume. Even hard-hit areas of Florida, Nevada, Arizona and California are showing signs of life. In some cities, home inventory is less than half of what it was 15 months ago, and homeowners are entertaining multiple offers.

Low interest rates and attractive housing prices have lured some people back in the market. What’s holding other qualified buyers back? It isn’t financial instability or lack of liquidity. Call it market angst.
Fear of Commitment?

Celia Dunn of Celia Dunn Sotheby’s International Realty says, “fear of the unknown” is keeping some people from taking advantage of dramatic price reductions in her two markets of Savannah, GA, and Bluffton, SC. “They’re still hesitant to commit,” she laments. Yet, first quarter 2009 sales topped those of 2008, and her office is closing on multiple homes every week. Dunn represents a mix of primary and second-home properties in historic districts, waterfront areas and on islands. For those ready to dip their toes back in the water, it’s a rosy picture. A home in the Savannah Historic District that originally listed for $3.1 million just sold for $1 million. A private island off the South Carolina coast priced at $15 million is down to $10.5 million. “People can get so much more for so much less,” Dunn says.

Not long ago, risk was associated with rewards, but the drumbeat of sagging economic news has made people risk adverse, even when their personal finances are sound. Dr. Gregory Berns, a professor of neuroeconomics at Emory University School of Medicine in Atlanta, GA studies the biology of the brain and its influences on decision-making. He has done several experiments using magnetic resonance imaging to learn how individuals are influenced by other people’s opinions. It turns out those opinions can affect “subtly and not-so-subtly” how an opportunity is perceived. “When others hold back, that tends to make you hold back,” Berns says. In other words, your gun-shy neighbor’s investment reticence could cause you to doubt your own strategies. “It could be a good opportunity right now for investment,” Berns says. “Wait and you may miss it.”

Some waiting on the sidelines are those trying to time the market. But figuring out the bottom is difficult, according to Lawrence Yun, chief economist at the National Association of Realtors. “There’s always regret about buying too early or having missed out at the bottom.” For people who are financially capable and who stay within their budget, today’s market presents “a tremendous opportunity,” Yun says. “One is looking at 50-year-low mortgage rates. Combine that with falling home prices in many regions and buying power has increased significantly.”
Falling In Love With The Deal

Real estate in the Detroit area has been especially hard hit because of auto industry woes. In the northwest suburb of Birmingham, MI, Douglas Hardy, chairman of SKBK Sotheby’s International Realty, says, “We have a lot of people a bit paralyzed and unable to move because they’re not sure they’re going to still be employed. I understand it completely.” And yet, Hardy says the abundance of attractive deals across every price range is starting to drive the market to the point where “it may no longer be prudent not to take advantage of great housing prices.” Three years ago, SKBK sold a home for $1.2 million. They resold that same home for $600,000 a few weeks ago. “It’s a phenomenal house and it was on the market a week.”

Sales of top-tier homes in the upper reaches of the real estate market haven’t been as affected as houses on the middle and lower ends, Hardy says. That’s because buyers have the liquid assets necessary to make substantial down payments. “We’re seeing high-end properties appear on the market and disappear in just one or two weeks.” It’s a glimmer of hope. As the supply goes down, prices start to stabilize.

Buyers poised to take advantage of attractive home prices are re-entering the market with facts and not with fear these days. They’re relying more heavily on the expertise of their real estate agent and tax advisor for professional advice that will allow them to make prudent decisions. Emotions are being excised. “When people look at real estate now, they no longer fall in love with the house,” Hardy says. “They fall in love with the deal.”

Property at top presented by SKBK Sotheby’s International Realty, click for details on the property. Tel: 1 248.644.7000

by Iyna Bort Caruso [ via Wall street journal ]

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