THANK YOU PRESIDENT BUSH

President Bush just finished his news conference in which it was announced that a bridge loan has been approved for the Big 3 automakers.

There are many of us in Michigan, and throughout the country, that have exhaled that deep breath we'd been holding for a month.

When ever anyone mentions the economy and the real estate market it almost always is mentioned that the start of the problems were the so called liar mortgages.

I always just shook my head and said (or thought) that this wasn't the beginning of the downfall for real estate - it was overproduction in my opinion.

In 2000 and 2001 everywhere I drove or walked I saw a new subdivision going up - whether it was single family homes or condos. Almost every farm was snatched up by developers to be turned into another "You have to buy a home here!" mega subdivision. I can't be the only person that thought "Who is going to buy all those homes?" and "Don't we have enough housing to go around already?"

Living in the automotive belt of the US we have become accustomed to the Big 3 suspending their production lines when supply exceeds demand. It usually occurs directly after the Christmas holidays. The manufacturers talk to their dealers and determine that X amount of autos are sitting on the lots, and only Y amount of a days supply are needed. This coming January Chrysler will be shutting production for what appears to be the whole month, and General Motors has also announced a lengthy shut down period. The dealers will be able to clear their lots of automobiles before more are brought on to the market. Suppy and demand.

It's too late to do anything now, but wouldn't it be grand (and prudent) in the future if housing was built on the same principle? Supply and demand? The last thing I want to see regulated is free enterprise, but perhaps there is a solution that could be put into place before the next building frenzy occurs.

~Kris Wales~ a Macomb County MI real estate agent

Macomb County MI has many cities and townships within its borders and the
prices of homes as well as the homes amenities varies as you search within
the county.

This morning in Clinton Township MI there are 7 homes and condos for sale
all priced at $100,000.

One of the condos for sale is a 2 bedroom in the Stonegate subdivision that
is a little over 1300 square feet and within the Lanse Creuse school district.
The Stonegate subdivision has its HUD approval, which means that you can
purchase the condo using a FHA mortgage.  Keep in mind that FHA mortgages
will require 3 1/2% after the first of the year as a down payment. 

There is also a three bedroom brick ranch for sale in the Imperial subdivision
on the market this morning for $100,000 that has a basement and a 2 car
garage.  This home also appears to be available to purchase using an FHA
or VA mortgage.   To preview the homes for sale at $100,000 this morning
in Clinton Township please click here.

If you are a first time home buyer you can also take advantage of the $7500
first time home buyers tax credit that is good for purchases made before
July 1st, 2009. 

Any questions about the $7500 tax credit or FHA & VA mortgages?  Please feel
free to contact me.  No pressure - just conversation.


Kris Wales - a partner for your real estate needs in Macomb County MI

All homes and condos listing information is courtesy of Mirealsource^TM and its
participating brokers and real estate agents through broker reciprocity data sharing.

The Scenario: You live in one of the communities in Macomb County MI. You are considering putting your home up for sale and are planning on interviewing several real estate agents.

The agents come to your home to view it and talk with you about your needs, and towards the end of the interview they pull out their paperwork and/or laptop to show you exactly what has been happening in your local area. (Please be sure the information is localized - your subdivision and neighboring ones, your school district, etc.)

You also have a chance to ask questions of them: Where do you get your information? How accurate is the data? One more important question is often overlooked: Does your data include homes being offered for lease?

Here is why that question is so important: One of the reports that real estate professionals use is the latest Multilist data showing how many homes have sold, average days on the market, and average sales price. A problem with the accuracy of the average sales price of homes in your localized area is that the leased homes (homes that were rented) is included in the total data.

An example: 18 homes sold in Chesterfield Township during the month of November, 2008 according to the data provided by Mirealsource™. The average sales price is being reported this morning to be $144,407.

However, when I pull up the detailed information 2 of the 18 homes being reported as sold, were actually homes that were leased for $1200 and $1450 respectively. This clearly will throw the reported average sales price out of whack. Stripping those rental prices out of the report shows a more accurate reporting:

16 homes sold in Chesterfield Township MI during the month of November 2008 with an average sales price being $162,292. (Sellers concessions to the buyer in form of closing costs paid, or credits given for repairs are included in this sold data. Stripping this information is another post entirely!)

When I am looking at raw hard data for my clients I take into account what is being reported: “Sold” and “Lease” data. Please be sure your real estate professional is doing the same thing for you. Ask him/her to give you the facts based upon what is truly “sold” (unless of course you are renting out your home and need that specific data!)

~Kris Wales~

A partner for your real estate needs - Macomb County MI real estate agent

On Monday of this week I attended a mandatory-vital-got to be there meeting at my office, RE/MAX Advantage 1, Inc. in Chesterfield Township. During the meeting it was revealed that the owners of the company (Tom Figlan, Rich Kolb and Roberta Rasmussen) had decided to go in a new direction with their company and drop the RE/MAX Franchise.

They are becoming independent and as of today (or tomorrow?) will be called Advantage Realty, Inc. I wish each of the owners well, and hope that the change they have made bring them nothing but happiness and success.

The owners of the company are bold and driven, and I know much thought over many months must have gone into their decision. I applaud them for their vision and feet to the ground action. In many ways I wish that I could be more risky in my approach to life situations, but I am conservative at heart I’ve discovered. Nothing wrong with that - I am what I am and not ashamed of it.

After the meeting I realized I had my own decision to make, one that would affect my career and livelihood for years to come.

After much thought and soul searching I decided that the best course for me personally and professionally was to move my business to a franchise and group of people that are also driven and bold. This group of people are community orientated and well respected for their service to real estate consumers in Macomb County MI.

Today I am officially part of the Keller Williams family, with the Lakeside Market Center in Macomb County.

I am joining dear friends (Brian Thomas, Jim Kaschalk, John Morgan, Dale Black, Mary Lou Laporte, Dave Klaft) and a terrific real estate organization. I am blessed to have been accepted into the Keller Williams organization and know that I will be happy with this wonderful group of people.

The coming months are bringing change, to not only our economy and real estate industry but to me personally. I am looking forward to the change and embrace it. I’m sure I’ll be chatting with you in the days to come about the transition for me, the fun at the office, and share many pictures with you. Please indulge me as I make this career change, I’ll not forget what is important to you: Real estate news and how it affects all of us in our local area.

~Kris~

Kris@Macombhomes.com