Several news articles have broken in the past few days about how Lansing Michigan is the big loser when it comes to drop in housing prices, referring to the median price drop of 27%. What most articles always tend to leave out is that the national median normally is a typical market price, where half of the homes sold for more and half sold for less.
NAR President Richard Gaylord, said the U.S. market is very dynamic. "It's more important than ever to examine what's happening with home prices at the city and neighborhood level," Gaylord said. "The old real estate mantra of ‘location, location, location' is perhaps more relevant today than ever before. Consumers should check with REALTORS® for local expertise on what's going on in their own area because conditions can vary considerably from one neighborhood to the next."
Lawrence Yun, NAR chief economist, said the numbers don't tell the whole story. "These are highly unusual results because there were very few jumbo loan originations in the latest quarter, so sales are much slower in high-cost areas, and at the same time foreclosures related to subprime mortgages rose," he said. "Neighborhoods with little subprime exposure are holding on very well, while prices have fallen in neighborhoods with a wide prevalence of subprime loans because more foreclosed properties are being sold at discounted prices."
Coldwell Banker Hubbell Briarwood recently published its quarterly housing report which gives you a more accurate description of what's going on in the Lansing area real estate market. Some interesting stats that show some parts of Lansing city area (Four Areas) with average sale price down as much as 44% vs. surrounding communities down in average sale price down as low as only 3%. I think thats what Mr Yun is referring to above, real estate is about location, location, location. We are seeing deep discounts on bank owned properties, that affect the median price, however you need to keep in mind that only 1 in 150 homes in the Lansing area are repo's and sellers don't need to play that game. To find out the value of your home in today's market, you won't find it in the newspaper, because they are not telling the whole story. You need to read beyond the headlines and take it to a local level. My last 3 closings were within 5% of list price.
Now, more than ever is when sellers need professional advice on marketing their real estate. Even more important is hiring a Realtor who is going to be optimistic about your transaction, yet realistic to be competitive in today's market.
Feel free to contact me if I can answer your questions about selling a home in the greater Lansing area. I'm SOLD on real estate as a great investment and understand that the there's repos and then there's your house, which is not all in the same.
"Expect the Best" Mike
Mike Bowler Sr. ePRO, CRB, GRI, SRES
Coldwell Banker Hubbell Briarwood
1020 S. Creyts Road, Lansing, MI 48917
Phone: 517-492-3400 Fax: 888-832-6203
email: Mike@MikeBowler.com
Website for Clients: MikeBowler.com
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