Lee Morof's Real Estate Blog

On Thursday May 8, 2008, the United States House of Representatives passed a Housing Aid Bill that would allow struggling homeowners to refinance their subprime mortgage loans through the Federal Housing Administration and provide funding to states to buy and fix up foreclosed homes. Bush has threatened a veto claiming that the bill would penalize prudent homebuyers and reward those that “gambled” that home values would rise. As to the funding provision to the states, Bush claims that it rewards the lenders who helped cause the problem. Total projected cost of the bill is estimated to be $17.7 billion over five years.

First, let’s put this is perspective. According to some accounts, we are spending around $1 billion per month in Iraq, an amount that Congress doesn’t  seem to have any trouble funding. So, any claim that we cannot afford the cost of the Housing Bill is just disingenuous. In addition, the bill provides that homeowners would be required to share any profits from selling or refinancing with FHA.

Second, the contention that the bill would penalize prudent homeowners is shortsighted Bushspeak. I am a RE/MAX Associate Broker/Attorney selling homes in the North Woodward Area of Oakland County in Southeast Michigan. Currently, one of every two homes sold here is bank owned foreclosed. This influx of housing inventory has caused all homes in the area to decline in value by as much as thirty to forty percent over the last few years. By reducing the number of foreclosed homes on the market, “prudent” homeowners will see their home values stabilize and, eventually, climb. To say they would be penalized is absurd.

Third, to contend that subprime borrowers “gambled” shows how disconnected this President is from reality. Subprime mortgage borrowers typically had very little choice when it came to financing available to them to buy a home. For the most part, the choice was to buy a home under those terms or not. What the subprime borrowers did not expect was that they would be laid off or outsourced during a recession that no one wants to admit has happened.

George W. Bush’s approval ratings are amongst the lowest of any President in our nation’s history. His, or his conrollers’, veto threats of the current Housing Bills and the reasons for them, are more examples of why he is so unpopular.

Are you thinking about buying or selling Southeast Michigan real estate in Oakland County?  Give me a call today at 248-514-2640.

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

Birmingham Michigan posted some nice housing numbers in February 2008 according to the April Edition of Metropolitan Realtor. Total home sales were up 26.32% as compared to February 2007. The median sale price was up by 9% and the number of on market listings declined by almost 8%. While one month does not necessarily represent a trend, the fact that all of these categories posted encouraging figures, gives cause for optimism. I suspect that many buyers who have been waiting on the sidelines, have jumped at this current opportunity to live in Birmingham. Prices have dropped considerably over the last few years and interest rates have remained low as well. Hence, many are now able to live in an area that they previously thought they could not afford. 

Looking for Southeast Michigan real estate in Birmingham?  Give me a call today 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

Accordingly to the recently released 2007 National Association of Realtors (NAR) Profile Of Home Buyers And Sellers, the number one reason given by For Sale By Owner (FSBO) Home Sellers as to why they attempted to sell their homes without Realtor assistance was to avoid paying a commission. An examination of the survey results indicates that home sellers should avoid the FSBO process altogether. First, in 2007, the by owner seller had a seven percent (7%) chance of selling his or her home to a buyer that they did not know. In addtion, according to the survey, the median sale price was thirty four percent (34%) higher for Realtor assisted sales compared to by owner sales. By owner sellers also indicated that the most difficult task they faced was understanding and preparing the paperwork necessary to sell their home.  If you’re thinking about selling your Southeast Michigan real estate, give me a call at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

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

Finally we have some good news for the North Woodward Area of Oakland County, Southeast Michigan. In January 2008, according to Metropolitan Realtor-March 2008 edition, Birmingham, Michigan saw home sales increase from January 2007 by almost 54% (fifty four percent) and listings down by almost 9% (nine percent) for the same period. In Beverly Hills, Michigan sales were up by 71% (seventy one percent) and listings were down by almost 2% (two percent). If these numbers continue, home prices should start going back up again in Birmingham and Beverly Hills. Any buyers who are considering buying in these areas may want to buy now or they might be priced out in the next few months. 

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

Between 1997 and 2006, the number of home purchasers that found their home on the internet jumped by 1,200 percent according to the National Association of Realtors 2006 Profile of Home Buyers & Sellers. The use of the internet to find a home is here to stay. In fact, in 2006, it was the number two source that buyers used to actually find the home that they purchased. The number one source that buyers used was a Realtor. Therefore, if one is serious about selling a home in this market hire a RE/MAX Realtor and have your home marketed where the buyers are.

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