Lee Morof, Associate Broker/Attorney

It is no news flash that most of the United States is experiencing one of the worst housing markets in almost thirty years. I am a RE/MAX agent in Birmingham Michigan that sells homes in the North Woodward area of Oakland County, Michigan. Our inventory of bank owned and other homes currently on the market is at an all time high. This, of course, is partly responsible for the drastic drop in the price of homes that we have seen.

The first great move in Washington was by the Federal Reserve Board in slashing the Federal Funds rate by .75% and indicating more rate lowering is likely to come. This helps the housing market first by easing the effect of future ARM (Adjustable Rate Mortgage) adjustments which, in turn, will reduce the number of foreclosures and bank owned homes on the market. Second, many homeowners will be able to refinance and lower their monthly payments which will free up money for them to buy more goods and services and keep more people employed and able to afford to buy and/or keep their homes.

The second great move is the House measure that was passed today which will increase the FHA loan limit from $362,750 to $729,750 and the Fannie Mae and Freddie Mac limits from $417,000 to to the same number. Although Senate passage in its existing form is not certain, if passed, this will reduce the glut of high end homes that have been sitting on the market for years.

By no means are we out of the storm yet. However, these are positive steps that should produce results within the next year. I am often asked by potential home buyers whether I think that our North Woodward market has hit bottom. The fact of the matter is that we do not know when any market has reached its bottom until it is on its way back up. For many would-be buyers, it will be too late when that happens. So, if you are in need of a home and can afford the payments, now is the time to act. If you wait much longer, it might be too late.

I am a RE/MAX agent with RE/MAX Showcase homes in Birmingham, Michigan. I sell homes in the North Woodward Area of Oakland County in Southeast Michigan. Michigan is a wonderful place to raise a family. On Saturday January 5th, the snow was perfect for making a snowman. My son and I, at his urging, didn't just make one snowman, we made a snow family with two dogs. Enjoy the photo.