Lansing Michigan Real Estate is Not a Loser - We're Winners!

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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Lansing Real Estate Update on 2007 Market

The stats are in on 2007 vs. 2006 for the greater Lansing real estate market, based on searching residential sold units off the MLXchange for 2007 I found 4248 residential sales with and average sale price of $143,000.00 compared to 2006 having 4933 sales at an average sale price of $153,618.00. Units are down 14% while average sale price is down 7% over one year. So don't believe what you read, it's hogwash, spin, and dirty media tactics to sell bad news.
Overall Lansing faired well compared to most areas in the country. Keep in mind that the reduction in sale prices is contributed to numerous foreclosures. Bank owned properties are taking deeper cuts than most listings on the market. This should also show improvements over the coming year.
I predict 2008 will be up over 2007, however we will still be faced with a challenging market. Rising defaults on sub-prime-mortgage loans, record high inventory, and media headlines that read, Mortgage crisis, credit crunch, sub-prime, foreclosures, housing bust will still be printed vs. any good news that happens our way.
I will continue to subscribe to my national media sources that provide the real facts, on my Goggle reader and pass them on to my colleagues, clients and customers. There will still be millions of people buying and selling real estate in 2008, just like there was in 2007. In most major cities housing prices are still showing long term gains "In some ways, the extended real estate boom from 2001 to 2005 created unrealistic expectations that housing is a short-term high-yield investment," said NAR Chief Economist Lawrence Yun in a Realtor.org, recent article. I think he hit it right on the head, real estate is long term.
Your home's value depends on many factors, including its style and size, amenities, condition and, of course, location, location, location. In addition, the value of your real estate investment can be affected by market conditions: interest rates, supply and demand and the overall strength of the economy. What to do?
1. If your moving up, keep in mind that if you take a sale price 10% less asking price, you can probably pick it up on the new home you buy. 10% on $150,000.00 = $15,000.00 less. Buy a $200,000.00 house at 10% less = $20,000.00 Gain or a $5000.00 net gain, plus the new home you wanted.
2. If your not motivated to move, don't need to sell, stay where your at, however, keep in touch with the market. you can do that by visiting my website often or subscribing to my blog RSS.
3. If you're a buyer sitting on the fence. It's time to get off. Home prices are bottoming out, interest rates are still the lowest in years, you have plenty of properties to pick from, sellers are more apt to negociate and as the market changes, so will the prices and interest rates. There has never been a more opportune time to buy than today!
4. If you in trouble on your house payments, need help to keep your house or need to sell prior to foreclosure, seek professional help. There are numerous programs recently introduced to assist you. Make sure you investigate your options. It cost nothing to be advised by a professional.
5. If your looking to invest in real estate for building your portfolio, this is the time to pick up great investments on bank owned homes in the Lansing area. However, be prepared for vacancy, due to high vacancy and competitive rent rates.
For most of us, our home is more than a house and more than "just" an investment. Knowing the value it holdscan have a significant impact on how we achieve our financial goals. That's why, I want to earn the right to service your real estate needs now and in the future. If you live in Lansing, Delta Township, Grand Ledge, Delhi Township, Holt, Okemos, East Lansing, Haslett , Bath, Dewitt, Mason or Eaton Rapids, I service your area and you can "Expect the Best" Mike