The tumultuous 2007 market is behind us and the 2008 real estate market has just begun! What does the new real estate market hold for Washtenaw County? Will sales prices continue to decline? If so, how long and how far will they decline?
If you have an opinion or a crystal ball and would like to enlighten the rest of us, please drop us a comment. For now, let’s take a look at what happened in January of the new real estate market:
Average List Price – January 2008
The Average List Price for a home or condominium in January 2008 was $233,770. This average is down over 14% compared to January 2007. This is indicative of two things in the Washtenaw County real estate market: 1 – a general increase in bank owned/short sale properties and 2 – the effect that the full-on schooling the Pfizer withdrawal had on our marketplace.
When Pfizer relocated their personnel, they bought out their employees, slashed the asking prices to 2000/2001 price points and sold the homes in very short order. The market took notice. Buyers hunted for Pfizer relocation homes. Sellers silently, or openly, cursed Pfizer and dropped their prices too.
In response, a general decline in the average sales price can be seen beginning around April 2007.
Average Sales Price – January 2008
The Average Sales Price for a single family residence in January 2008 was $211,806. The sales price average was down over 7% compared to January 2007.
Number of Listings v. Number of Closings – January 2008
Encouraging signs: Both trend lines are beginning to trend in the correct direction. Closings have begun to “bottom out” and listings has begun to “tip over.” This means that the closing trend is increasing and that the listing trend is slowing down!
What the deuce does all of this mean for buyers and sellers in Washtenaw County?
For sellers, it means that the convergence of price and quality is the key to getting a home sold in this marketplace. While overall inventory may appear to be slowing down, buyers still have a boat load of homes to choose from.
In addition to price and quality, you should also consider the marketing program to best expose your property in today’s marketplace. With around 90% of buyers utilizing the internet at some point in their home buying process, it is to your advantage to expose your home all over the internet. Check out the Team366 Online Marketing Program for sellers.
For buyers, this means that you have a multitude of properties to choose from; both bank owned and personally owned. And, mortgage rates are still near historic lows, FHA has increased its loan limits…!
If you happen to be looking for property, check out the Team366 Home Search. You can create searches, save them and save favorite homes.