Lee Morof's Real Estate Blog

I am a RE/MAX Associate Broker/Attorney selling homes in the North Woodward Area of Oakland County in Southeast Michigan. Unfortunatley, our market has been declining over the last several years. Approximately nine months ago, I had a listing appointment with a couple in Troy, Michigan who needed to sell their home due to a relocation. I provided them with the then current comparable sales and listing data which they found disappointing as most sellers do in a declining market. I did not agree to list their home at the top of the market as they insisted and they found another Realtor who did. I have kept track of the status of the home on the Multiple Listing Service and now, nine months later, it has still not sold. In fact, it is now listed at a price below that which I think I could have sold the home nine months ago. I have learned that in a declining market, what few buyers there are look at and buy homes between the bottom and middle of the market because, understandably, they want the best deal.  So, when the top of the market seller decides to lower his or her price downward they find themselves CHASING the top of a declining market. Unfortunately for them, they end up losing more money in the long run. In the case of the Troy Michigan real estate sellers, I felt that they needed to price their home at $359.000. The high bidding Realtor listed them at $375,000. In the nine months that have followed, they have adjusted the price to $364,900, $359,000 and now it is priced at $350,000. Of course, they have continued to pay for utilities, taxes, insurance and to maintain the home. By my calculations, I could have saved them about $20,000 had they listened.

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
www.NorthWoodwardHomes.com
info@NorthWoodwardHomes.com
Call:  248-514-2640

It is no news flash that most of the United States is experiencing one of the worst housing markets in almost thirty years. I am a RE/MAX agent in Birmingham Michigan that sells homes in the North Woodward area of Oakland County, Michigan. Our inventory of Southeast Michigan real estate bank owned and other homes currently on the market is at an all time high. This, of course, is partly responsible for the drastic drop in the price of homes that we have seen.

The first great move in Washington was by the Federal Reserve Board in slashing the Federal Funds rate by .75% and indicating more rate lowering is likely to come. This helps the housing market first by easing the effect of future ARM (Adjustable Rate Mortgage) adjustments which, in turn, will reduce the number of foreclosures and bank owned homes on the market. Second, many homeowners will be able to refinance and lower their monthly payments which will free up money for them to buy more goods and services and keep more people employed and able to afford to buy and/or keep their homes.

The second great move is the House measure that was passed today which will increase the FHA loan limit from $362,750 to $729,750 and the Fannie Mae and Freddie Mac limits from $417,000 to to the same number. Although Senate passage in its existing form is not certain, if passed, this will reduce the glut of high end homes that have been sitting on the market for years.

By no means are we out of the storm yet. However, these are positive steps that should produce results within the next year. I am often asked by potential home buyers whether I think that our North Woodward market has hit bottom. The fact of the matter is that we do not know when any market has reached its bottom until it is on its way back up. For many would-be buyers, it will be too late when that happens.

So, if you are in need of a Southeast Michigan real estate home and can afford the payments,  now is the time to act. If you wait much longer, it might be too late.  Give me a call at 248-514-2640 and I’ll help you find and buy a home at the best price that fits your budget and needs and without making costly mistakes.

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
www.NorthWoodwardHomes.com
info@NorthWoodwardHomes.com
Call:  248-514-2640

I am a RE/MAX agent with RE/MAX Showcase homes in  Birmingham, Michigan. I sell homes in the North Woodward Area of Oakland County in Southeast Michigan. Michigan is a wonderful place to raise a family. On Saturday January 5th, the snow was perfect for making a snowman. My son and I, at his urging, didn’t  just make one snowman, we made a snow family with two dogs. Enjoy the photo. 

 
Interested in moving to Southeast Michigan?  I’ll help you buy Southeast Michigan real estate that fits your needs.  Call me at 248-514-2640 or email info@NorthWoodwardHomes.com now!   

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
www.NorthWoodwardHomes.com
info@NorthWoodwardHomes.com
Call:  248-514-2640