Howell, MI

Whether you're a Real Estate Professional or an interested consumer, you've likely noted that the condo market is glutted and has more potential deals than the larger total housing market.

Looking at condominiums that are located in the two Howell, MI zip codes (48843 and 48855) we can see how badly condos are faring in the current economy.

In calendar year 2007, there were 55 condominium sales recorded in the RealComp MLS. They showed an average sales price of $127,756, a median sales price of $120,000, and a total sales volume (total sales dollars for all 55 sales) of $7,026,554.

In 2008 (through 12/14/08), there were 48 sales with an average sales price of $85,543, a median sales price of $82,950 and a total sales volume of $4,106,053.

These are tremendous one-year drops in value by any standard. The average sales price is down 33%, the median is down almost 31% and the sales volume has dropped over 41%! To make it worse, with 214 units available in these areas right now, there is over a 53 month supply of condominiums (214 available divided by 48 sales this year for 12 months, or an average of 4 sales/mo).

Foreclosed unit sales in this area have tripled, from 6 in 2007 to 18 in 2008.

New construction has essentially stopped, and some builders/developers have either lost unsold units to foreclosure, gone bankrupt, or both. Homeowners in some condo associations are having a myriad of issues to handle, too.

If the development has not had enough units sold to invest the residents as Association Board members, the developer retains control. Some Associations are finding that while they've paid their monthly dues, services are not being performed (snow plowing, landscaping) because there's not enough money in the fund.

Developers often base the starting dues on a certain number of sales per year and a maximum build out time. They may even stipend some of the early costs to get new sales in their communities. When the sales stop and there are many units left to build, it's bad for everyone.

Built-out, established communities are also grappling with the loss of monthly dues due to bank-owned properties. When a condo goes into foreclosure, those dues stop (often dues are one of the first payment to be deferred when owners get into financial trouble, even before foreclosure). If your association is working on a tight budget and the number of foreclosed properties keeps climbing, it can really hurt the whole community. Banks do pay these back dues at closing, but it certainly creates a short-term budget crunch for the association.

There are definite deals out there in the condo market, but remember to do your homework before you commit yourself. If you're considering a unit in a development that has a lot of empty sites, be extra careful. Once you analyze the Association budget, it may still be worth pursuing, but make sure you've got as much information as possible on which to base your decision.

For homes in the Howell zip code 48843 (basically the Howell area south of M-59), there are some interesting contrasts between 2007 and 2008.

The total number of homes sold are pretty close, 370 in 2007 (through 12/31/07) vs. 378 in 2008 (through 12/4/2008). The fact that the total number of sales has remained pretty constant is a good sign by itself. With lenders getting tougher on loan requirements, required down payments and more underwriting scrutiny it shows that there are still buyers out there looking for homes - and they're able to buy!

If we look at just the foreclosed (also known as bank-owned or REO) homes, the picture is more grim. In 2007, there were 47 bank-owned home sales of the 370 total, or about 13%. For 2008, we've seen 115 bank-owned home sales out of the 378 total, or 30%. That's more than double last year's rate and this year's data is not complete at this point.

The median price dropped from $209,750 to $170,000 (a 19% reduction) for those same time periods. That's a huge drop in value, undoubtedly influenced by the higher number of foreclosures. But there's also the fact that owner-occupied homes are dropping in price, too, as the entire housing market loses value.

The time to sell a home went down- from 145 days in 2007 to 134 in 2008 So, homes that sold did so about 8% faster in 2008 - a small bright spot, anyway.

If you absolutely have to sell, expect to take a hit from what your home was worth 2 years ago. At least 20%-25% is not uncommon, and it may be even more.

Several month ago I listed six vacant lots on Bignal Drive in Howell, Michigan. I am also representing Essex-Home Builders on a property at 6190 Concerto Drive in Saline.

So I thought....................

I have a developer with lots and a builder who wants to build, so I put the two of them together and we now have 6 lots with floor plans and elevations to offer people looking for new construction in the Howell, Michigan area. Howell is located in Livingston County.

This is the email notifications I send out to people who have registered on one of my web-sites and want to receive new listings.

I believe it is difficult for many people to visualize a home on a vacant lot, so hopefully this will give them a picture of great homes to be built on 2 to 5 AC lots in Howell on 0 Bignal Drive by Essex-Home Builders.

Warmest Regards,

Missy Caulk & TEAM

Missy@MissyCaulk.com
734-216-2822

Six Buyer Agents

Christa 734-330-1871
Betty 734-944-6098
Pattie 734-883-7189
Judy 734-944-1912
Brent 734-717-2591
Terry 734-644-2837

Search All Listings In Ann Arbor

Read my blog about Ann Arbor Real Estate

610 E. Washington St. Listed at: $81,140

Bank-owned home available "As-is" in the historic district of Howell. 5 bedroom, 2 bath, 2040 sq.ft. 1 car garage, large backyard, close to shopping, schools and freeways. Needs lots of TLC. Priced to sell quick! Hurry, this one won't last

View pictures at: http://detroit.backpage.com/online//classifieds/ViewAd?oid=717032

Please contact Team Campbell at Keller Williams Realty 2144 S. State Street Ann Arbor, MI. 48104 734-821-0733 direct e-mail: info@teamcampbell.biz

I have the privilege of waking up to this view every morning! Lake Chemung is an all-sports lake in Livingston County MI, and it is one of the largest lakes in the area. We are already seeing boats and jet skis on the lake! Summer has arrived! Interested in lake living? Contact me via my web site below.

www.MarvelousMary.com

Bringing Home Buyers and Sellers Together

This is the evening view I have! Heaven!