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

Share on Facebook

There is a lot of misinformation going around about what the impact of a Short Sale is on your credit and whether you can get a new mortgage after short selling a home. Below are the current Guidelines for FHA, and Fannie Mae.
FHA has recently changed their rule so that if a short sale occurred and all of the borrowers payments were made on time (no late payments) then they may be eligible for a new mortgage as long as the short sale was due to extenuating circumstances and not to simply take advantage of market conditions (see below). As you can imagine, this may be difficult to demonstrate. Otherwise, if any payments were made late or you cannot demonstrate extenuating circumstances, then it is a 3 year period before new FHA financing can be considered.
Fannie Mae policy is pretty straight forward – It is a minimum of 2 years to re-establish credit after a short sale.
It is very difficult to predict how a short sale will affect an individual’s credit score because there are so many different factors involved; How good was the credit to begin with? How many house payments were made late? Did they pay all of their other bills on time? Etc, The short sale will most likely be reported as a settled account paid for less than the amount owed and will have a dramatic impact on credit score even under the best of circumstances.

Here is the excerpt straight from FHA:
Borrowers are not eligible for a new FHA- insured mortgage if they pursued a short sale agreement on his or her principal residence simply to
•take advantage of declining market conditions, and
• purchase at a reduced price a similar or superior property within a reasonable commuting distance.

Reference: For detailed information on converting existing principal residences into rental properties, see 4155.1 4.E.4.g

Borrowers Current at the time of Short Sale
Borrowers are considered eligible for a new FHA-insured mortgage if, from the date of loan application for the new mortgage
•All mortgage payments due on the prior mortgage were made within the month due for the 12 month period preceding the short sale, and
• All installment debt payments for the same time period were also made within the month due.

Borrowers in Default at the time of Short Sale
Borrowers in default on their mortgage at the time of the short sale (or pre-foreclosure sale) are not eligible for a new FHA-insured mortgage for three years from the date of the pre-foreclosure sale.
Note: Borrowers who sold their property under FHA’s pre-foreclosure sale program are not eligible for a new FHA-insured mortgage from the date that FHA paid the claim associated with the pre-foreclosure sale.

This is Fannie Mae’s Guideline:
Preforeclosure Sale
A two-year period is required to re-establish credit, measured from the completion date.

Written by:
Ken Mascia
248.644.1200
kmascia@primecapitalmortgage.com

Share on Facebook

Credit scoring models are a mystery that boggles the mind. There is no way to know exactly how specific changes to your credit report will impact your credit score. We do know the factors that go into calculating the score – 1) Your payment histories 2) Number of accounts that have balances. 3) Proportion of balances to credit limit. 4) Length of time accounts have been opened. 5) Credit inquiries. 6) Collection Accounts and Public Records. You can read more about this in the articles I wrote entitled How to Get a Great Credit Score Part 1 and Part 2. The scoring models are updated occasionally and the changes cause different issues to play a bigger or smaller role in your score. Continue reading ‘How to Destroy Your Credit Score in One Easy Step!’ »

Share on Facebook

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’ »

Share on Facebook

The following is a statement by National Association of Realtors® President Charles McMillan:

“The Federal Housing Administration is playing a crucial role in providing mortgage financing to the housing market, as mortgage and banking systems have faced collapse. While FHA’s capital reserve ratio has declined, that is not surprising for an agency dealing in housing finance in today’s market, and there is no sign that a taxpayer bail-out will be required. FHA stands in contrast to entities in the private sector, including Fannie Mae, Freddie Mac and many large banks that have needed tens of billions of dollars in federal funds.
Continue reading ‘FHA Taking Steps to Ensure Taxpayer Money during Housing Crisis’ »

Share on Facebook

Realogy Corporation, a global provider of real estate and relocation services, announced its support of a bi-partisan Senate bill (S. 1678) recently introduced that would create a six-month extension of the $8,000 federal tax credit for first-time homebuyers and move the current expiration date forward to June 1, 2010.

“This is an important next step for maintaining positive momentum toward a recovery in the housing markets and the overall U.S. economy,” said Realogy President & CEO Richard A. Smith, who also serves as chair of the Business Roundtable’s Housing Working Group. “While we applaud this effort and support passage of this prudent and necessary legislation, we also want to make it clear that we will continue to work with Congress to broaden the scope of the credit.

“Specifically, Realogy supports expanding the existing first-time homebuyer tax credit to all homebuyers of a principal residence, increasing the size of the tax credit, and eliminating the existing income eligibility caps, all of which we believe are critical to the ‘move-up’ or repeat buyers who we expect will drive the essential second phase of a housing recovery.
Continue reading ‘Realogy Supports Bill To Extend First Time Homebuyer Tax Credit to June 1st’ »

Share on Facebook

Trulia is excited to introduce our ‘Trulia Mayor’ program, a new initiative that will help strengthen and expand the Trulia Voices community including nearly 400,000 real estate professionals.

Trulia Mayors are great social media role models and innovators, and will represent the opinions of real estate professionals in various Trulia efforts. Mayors will attend frequent roundtable meetings, get sneak peeks of upcoming projects and will provide their input in content quality matters on Trulia Voices. Additionally, Trulia Mayors will be participating in various PR and marketing efforts, such as co-hosting local events and co-authoring newsletters and articles, to spread their knowledge and provide expert advice to consumers and professionals alike. Bottom line – it’s pretty cool.
Continue reading ‘SKBK Sotheby’s Has a Mayor of Trulia’ »

Share on Facebook